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RUNNING HEAD: The Importance of Marketing Research

The Importance of Marketing Research

The importance of marketing research

Marketing research can be described as “the function that links the consumer, customer, and public to the marketer through information.” (Kotler & Keller, 2016, p. 99) The information is used to identify any marketing opportunities and problems, generate marketing actions, monitor marketing performance, and improve the overall marketing process. The marketing research process is characterized by the following steps: (1) Define the problem and research objectives (2) Develop the research plan (3) Collect the information (4) Analyze the information (5) Present the findings (6) Make the decision. Larger corporations are more subject to having their own marketing research department. In 2013, spending on marketing research was $40.2 billion globally. Marketing research can be conducted by both large and smaller firms. Some of the ways that companies can conduct this research are listed below:

1. Engaging student or professors to design and carry out projects

2. Using the internet

3. Checking out rivals

4. Tapping into marketing partner expertise

5. Tapping into employee creativity and wisdom

Marketing research is also being conducted through focus groups, surveys, questionnaires, and experiments. Understanding consumers and potential customers is a huge factor in successfully conducting research to use in further propelling a product or service. Many sources have found that having a marketing research department or just the act of conducting marketing research makes companies 10x more successful. Some companies are hesitant to conduct market research in order to avoid “negative feedback” (Staff, 2018) Marketing research allows the marketers to understand consumers in the most effective way. Understanding consumers will ultimately determine the success or failure of the marketing of the product or service. Marketers that are able to effectively market to consumers will attract a stronger customer base. Marketing research allows for companies to market the product or service in a way that will engage their target market, making them more likely to invest. Companies that do not engage in marketing research are not going to be able to attract the right target market. Having a target market allows for marketers to focus their market research on areas that are going to attract the customers that are more willing to purchase the product or service.

Practical application

SAS, an analytics software and solution company, describes the process that they take in conducting their market research. This company, in particular, focuses on the customer and what they research on a daily basis. SAS is able to tap into every consumer’s interests by researching their online and in-store activity. The company is then able to sell the data that they collect to B2C’s. SAS has shifted to a more personal approach when trying to reach and engage consumers, by using personalized messages. For example, if Nike used SAS, they would be able to send a direct personal message to consumer’s who are researching athletic clothing. B2C’S that have the consumer data can “better understand your customer data so that you can hone the timing and relevance of your message.” (Sweetwood, 2016) By using this research, the companies that use SAS are able to reach their potential customers at the right times, depending on their needs. SAS uses data to better fit the customer’s purchasing journey: Need, research, decide, adopt, use, recommend. These factors in the purchasing journey all pertain to where the consumer stands in making their purchase decision.

Having this information as a B2C is crucial in whether or not there will be success in the market approaches. Analytics of consumer activity is a great way for companies to better understand the market and their potential customers. Without an understanding of the needs and wants of consumers, a company will not be successful. Consumers are more interested in companies that market to them exactly what they want and need. Having a better understanding of consumers and how to approach the marketing of the product or service comes along by conducting market research. As stated before, without market research, a company will not be able to reach their target market or any competing market.

Frito-Lay used social media in choosing what their next chip flavor would be. They used the social media platform, Facebook, and also conducted many survey panels. In this they tapped into their consumers wants in creating their next flavor. Frito-Lay would post consumer ideas and then took polls on which the majority of the consumers would like to see. They had flavors from onion ring to cappuccino. Although I never tried one of those random flavors, they were very popular while they lasted. This approach to marketing research engaged consumers in deciding the next step for Frito-Lay. The approach was riskier, but the increase in customer base for the company was significant.

Question on the importance of marketing research

Do you see any shifts in marketing research over the next decade? And if so, where do you see it going?

Reference Kotler, P., & Keller, K. L. (2016). Marketing Management. Boston: Pearson Education . Staff, E. (2018, September 18). Conducting Market Research. Retrieved from Entrepreneur : https://www.entrepreneur.com/article/217388 Sweetwood, A. (2016, August 23). How One Company Used Data To Rethink The Customer Journey . Retrieved from Harvard Business Review : https://hbr.org/2016/08/how-one-company-used-data-to-rethink-the-customer-journey