The term marketing research is used extensively in modem marketing management. It acts as a tool for accurate decision making as regards marketing of goods and services. It is also useful for studying and solving different marketing problems in a systematic and rational manner.
Research means detailed, systematic and comprehensive study of a problem. Here, the details of the marketing problems are collected and studied, conclusions are drawn and suggestions (recommendations) are made to solve the problems quickly, correctly and systematically. In marketing research, marketing problem is studied in depth and solutions are suggested to solve the problem relating to consumers, product, market competition, sales promotion and so on.
MR is a special branch of marketing management. It is comparatively recent in origin. MR acts as an investigative arm of a marketing manager. It suggests possible solutions on marketing problems for the consideration and selection by a marketing manager.
Definitions of Marketing Research
According to American Marketing Association (AMA), MR is "The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services."
According to Richard D. Crisp, MR is "The systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing."
According to Philip Kotler, "Marketing research is systematic problem analysis, model building and fact-finding for the purpose of improved decision-king and control in the marketing of goods and services."
Features of Marketing Research
1. Systematic and continuous activity/process: MR is a continuous process. This is natural as new marketing problems are bound to come from time-to-time in the course of marketing of goods and services. One type of research is not adequate to resolve all marketing problems. Similarly, new research projects will have to be undertaken to solve new marketing problems and challenges.
2. Wide and comprehensive in scope: Marketing research is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition and consumer preferences, introduction of suitable advertising strategy and sales promotion measures, are some areas covered by MR.
3. Emphasizes on accurate data collection and critical analysis: In marketing research, suitable data should be collected objectively and accurately. The data collected must be reliable. It should be analyzed in a systematic manner. This will provide comprehensive picture of the situation and possible solutions.
4. Offers benefits to the company and consumers: Marketing research is useful to the sponsoring company. It raises the turnover and profit of the company. It also raises the competitive capacity and creates goodwill in the market. It enables a company to introduce consumer-oriented marketing policies. Consumers also get agreeable goods and more satisfaction due to marketing research activities.
5. Commercial equivalent of military intelligence: MR is a type of commercial intelligence activity. It facilitates planned activities in the field of marketing. It is similar to military intelligence where systematic study of the situation is made before taking any military action. Marketing research acts as the intelligence tool of management.
6. Tool for managerial decisions: MR acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. It is an aid to decision-making. It suggests possible solutions for the consideration and selection by managers. Marketing research, is an aid to judgment and never a substitute for it.
7. An applied research: MR is applied knowledge. It is concerned with specific marketing problem and suggests alternative solutions and possible outcome of each alternative.