Posted in Marketing and Strategy Terms, Total Reads: 3251
Definition: Marketing Research System
Marketing research relates to information and data collection methods which provide a coherent representation of a need and its potential solutions. The system may be used for ongoing monitoring of the marketplace or on a step by step evaluation of a product concept.
According to American Marketing Association (AMA), “Marketing Research relates to the systematic collection, recording and carefully analyzing the data about problems related to the marketing of goods and services.” According to Philip Kotler, “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services.”
Features of Marketing Research
• Wide and comprehensive scope - Marketing research has a very wide scope. It includes product research, pricing research, market research, packaging research, sales research, etc. It is used to solve marketing problems and to take marketing decisions. It is used to make marketing policies. It is also used to introduce new products in the market and to identify new markets. Marketing research is used to identify channels of distribution and select them, in advertising strategy as in for sales promotion measures.
• Systematic and scientific - Marketing research follows a step-by-step process. It is conducted in an ordered manner. Therefore, it is systematic. Marketing research uses scientific methods. Hence, it is also scientific.
• Science and art: A Science collects knowledge (data) while an Art uses this knowledge for solving problems. Marketing research first collects data. It then uses this data for solving marketing problems. Therefore, it is both, a Science and an Art.
• Collects and analyzes data - Marketing research gathers data accurately and objectively. It first collects reliable data and then analyses it systematically and critically.
• Continuous and dynamic process - The Company faces marketing problems throughout the year. So, marketing research is conducted continuously. It continuously collects up-to-date data for solving the marketing problems. Therefore, marketing research is a continuous process. It is a dynamic process because it goes on changing according to market related information. It does not remain static (the same). It uses new methods and techniques for collecting, recording and analyzing the data.
• Tool for decision-making - The marketing manager has to take many decisions. For this, he requires a lot of data. Marketing research provides correct and up-to-date data to the marketing manager. This helps him to take quick and correct decisions. Therefore, marketing research is an important tool for decision-making.
Functions of marketing research
The various functions of marketing research are as follows -