Forum (Module 4)
Forum (Module 4)
Perpetua Smith
Liberty University
BUSI 520 – Strategic Marketing Management
Professor Keith Bowery
9 September 2019
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Forum (Module 4)
Introduction – Concept: The Importance of Market Research
According to Kolter and Keller (2016), marketing research is the application that links
the consumer, public and the marketer through the collection and use of information. The
information collected is used to identify and define opportunities within the market while
identifying problems within a business. Information is used to create, perfect, and evaluate
decisions and actions as well as monitoring performance and improving the marketing process.
(Kolter & Keller, 2016, p. 99)
Market research is important in providing detailed insights of competitors, customers
preferences, market trends, buying patterns, economic changes, and target demographics.
Intelligent business owners leverage market research to creative effective, and successful
business strategies. The competitive economy is growing and having relevant knowledge about
concerns and preferences of consumers has become an integral part of successful businesses.
Market research is one of the most efficient ways to understand and increase satisfaction, while
gaining knowledge about the political, economic, and environmental factors that are affecting
companies. Smart businesses use this information to elevate performance. Market research help
identify new opportunities and helps create marketing campaigns that directly target the interest
of consumers while increasing sales. (Outsource, 2019)
Valuable information is provided through market research. Information can include the
potential of a specific segment in a market, at a specific time, and within a demographic.
Research of the market is an evaluation tool that is used for comparing companies and industries.
A company's progress can be tracked as well as their competitors. Companies are able to devise
strategies that keep them ahead of the competition. While developing a product, businesses can
identify problems or potential problems and determine possible solutions. Additionally, research
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Forum (Module 4)
that is performed after a launch of a product can help organizations find issues and devise plans
to solve problems while increasing profits. (Outsource, 2019)
Marketing research is needed continuously to understand the latest trends and maintain a
competitive edge in the market. Understanding the information presented by market research and
using the information accurately is vital in reaching target audiences and increasing sales.
(Outsource, 2019) The potential market for products of a business can be described as the ability
of a company to meet consumer needs. A company must clearly define the target market before
conducting research. (O'Connor, 2013, para. 3) To obtain important information about the target
market, companies use various resources to conduct research. O’Connor states that information
gathered through sources like the “chamber of commerce, the U.S. Census Bureau, and the SBA,
provide valuable information to business owners.” (O'Connor, 2013, para. 4) Additionally,
research tools like “interviews, surveys, questionnaires, and focus groups” (Kolter & Keller,
2016, p.103-110) can identify information about the importance of specific features within a
product or service as well as the strengths and weaknesses of the market. (O'Connor, 2013, para.
4)
Practical Application
1. A company that developed a market research plan and created a successful analysis JetBlue.
JetBlue, prior to launch date, was able to determine that passengers on airlines put greater
emphasis on comfortable seating and entertainment rather than a hot meal and various other
amenities provided by other legacy carriers. Therefore, JetBlue made the decision to invest in
upgraded airplane seating and TV while emphasized relaxation, and a calm journey at a modest
Forum (Module 4)
price through market research. The company’s strategy was extremely successful that airlines
soon became imitators of JetBlue’s business structure. (O'Connor, 2013, para. 7)
2. Starbucks was able to identify unmet needs of consumers though market research and develop
a business structure that catered to the unmet needs. Starbucks turned coffee into an experience.
Starbucks is known for its quality of their products, but the company is also admired for the
atmosphere. An atmosphere where professionals, students, and anyone who requires a calm
workspace for hours with free WIFI is welcome to enjoy. The modifications of the standard
coffeeshop drew a large and loyal consumer following, which can be seen at Starbuck located on
almost every corner. Starbucks was able to determine consumers wants and needs and how the
company could meet their needs. Ultimately revolutionizing the coffee industry. (O'Connor,
2013, para. 8)
Question
As collecting, processing, and storing information has improved, information is available
almost instantaneously to every company and organization. This information is key into making
important marketing decisions. Companies are now able to obtain relevant information in a
reliable and timely means. Therefore, competitive advantage will depend less on who has the
information, but rather which company is able to make the best use of the endless information.
(Moorman et. al., 1992, p. 314, para. 1) Is there such thing as too much information? Does the
oversaturation of information prevent companies from making successful marketing decisions?
Forum (Module 4)
References
Kotler, P., & Keller, K. L. (2016). Marketing management. Harlow: Pearson Education Limited.
P.99
Moorman, C., Zaltman, G., & Deshpande, R. (1992, August). Relationships Between Providers
and Users of Market Research: The Dynamics of Trust Within and Between Organizations.
Retrieved from https://faculty.fuqua.duke.edu/~moorman/Publications/JMR1992.pdf
O'Connor, S. (2013, April 23). Step 3 for a Successful Startup: The Importance of Market
Research. Retrieved from https://www.forbes.com/sites/shawnoconnor/2013/04/23/step-3-for-a-
successful-startup-the-importance-of-market-research/#39a3a39d3d55
Outsource, I. (2019). Why is Market Research Important for Business - O2I. Retrieved from
https://www.outsource2india.com/kpo/articles/market-research-importance.asp
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