Objectives or benefits of marketing research

Marketing research is the application of scientific method to the solution of marketing problems. It is a systematic attempt to get useful information in solving marketing problems or making marketing decisions.

Objectives or benefits of Marketing Research

Marketing research enables the marketer to keep pace with the changing environment. Increasing competition, rapid developments in technological, ever changing attitudes of consumers, changing tastes and preferences are some of the important factors which call for changes in the approach to the markets by an international marketer.

Marketing research helps a company to identify the problems and opportunities in the environment. By designing suitable strategy, a marketer can successfully overcome the problems and utilize the opportunities for furthering his business. The objectives or benefits of marketing research may be outlined as follows:

1. To identify the opportunities in the market: The basic utility of marketing research lies in its ability to identify the opportunities in the market. It helps to determine the markets that should be short-listed as the target. It studies the market size, growth, accessibility and competitive factors.

2. To identify the deficiencies in the product: A successful marketer sells what is needed in the market. The changing needs and requirement of end users in the market should be analyzed. Suitable changes should also be brought about in the product in order to match customer needs. Deficiencies that exist in pricing, distribution and promotion are revealed by an effective marketing research.

Marketing research helps the company to identify deficiencies in the product related factors and to set them right.

3. To position the product in the market: Positioning is the act of designing the company’s offer and images so that it occupies a distinct and valued place in the target customer’s mind. Product positioning is the final step in market targeting.

Marketing research is concerned with selecting a positioning strategy that is appropriate to each target segment. Marketing research studies the mental perception of the offering. Even if two brands of a product are identical, each could be perceived differently. Consequently, two brands may be dissimilar in terms of their physical characteristics and may be positioned so in the mind of the prospect.

4. To arrive at pricing decisions: Considerable amount of analysis and data collection are required to arrive at pricing decisions. Pricing is the deciding factor for success in international marketing. A wrong policy in pricing can affect the prospects of overseas markets.

5. To assess its own potential: If the company is already manufacturing the product before entering the foreign market for the first time, it should know beforehand whether its product is suitable tor the export market. This necessitates some questions:

  • What are the normal distribution methods?
  • What are their alternatives?
  • What are their relative advantages and disadvantages
  • What are the channel costs, promotional methods adopted by the competitors.

Their promotional budgets, payment terms and the prices quoted are given serious consideration in marketing research.

Related Post

Your Ultimate Email Holiday Checklist Ultimate email holiday checklist Your lists are cleaned, email creatives have been designed. You are just about ready to send! Before you watch your ...
What is Waste in Advertising? What Causes Waste? What is Waste in Advertising? When an advertising campaign fails to achieve its objectives, we call it waste. The major objectives of advertisement a...
What is an Auction Sale? What are the Rules regarding Auction Sale? What is an Auction Sale? It is a public sale in which different willing buyers participate. The goods are finally sold to the highest bidder, i.e., t...
Various kinds of Middlemen in Distribution Channel Middlemen participating in the channel function The distribution channel starts with the producer and ends with the consumer. In between, there are m...
Types of Wholesalers and Retailers Types of Wholesalers The following are some of the types of wholesalers. Wholesale 1. Truck Jobber: He is a person who sells mainly perishables ...
Types of sales promotion strategies Sales promotions are classified as push promotional strategy or pull promotional strategy. Push promotions focus on distributors or retailers of a pro...

Leave a Reply