Marketing
research
facilitates decision-making in a number of marketing areas. The need and
importance of marketing research explained as follow:
1.
Marketing
mix decisions: - Marketing research enables a firm to
arrive at sound marketing mix decisions;
v Product Development: -A
firm can design the right product depending on the needs and wants of the
target customers. Due to marketing research, the company identifies the
requirements of the customers and, therefore, it may be in a position to modify
the existing products and designs new models/products to meet the customer
requirements.
v Pricing Decisions: -Marketing
research may facilitate the right pricing of products after analyze the
competitors pricing.
v Promotion-mix decisions:
- Marketing research may enable a firm to adopt effective promotion-mix
(publicity, advertising, sales promotion, etc).
v Place Decisions: -A
firm can also undertake appropriate place decisions. With reference to channel
selection, compensation to channel intermediaries, etc.
2.
Customer
Satisfaction: -One of the main objectives of
marketing is customer satisfaction. Marketing research facilitates customer
satisfaction. Customer satisfaction takes place when product/services
performance matches with customer expectations.
3.
Competitive
Advantage:
-Research is conducted to find out the strength of the
competitors. An attempt is made to find out why some consumers prefer
competitors brands and also the special features that appeal to them.
Accordingly, the company may incorporate and improve on such features in its
products to gain competitive advantage.
4.
Corporate
Image:
- The Company may be able to maintain and enhance corporate
image in the minds of customers, dealers and other stakeholders. For instance;
v Customer research provides
feedback on customers’ requirements and expectations. Accordingly, the company
may make efforts to satisfy customer requirements.
v Dealer research provides
feedback on dealers’ expectations and the incentives provided by the
competitors. This information may be used design effective dealers’ incentives,
which would motivate the dealers and therefore, the dealers may develop a good
image of the firm.
5.
Forecasting
Sales:
-A research can be conducted to judge whether there
would be demand for a new product in the market or not. Also, the demand for
existing products can be forecasted. Accordingly, sales programmes can be
designed.
6.
Expansion
of markets:
-Marketing research facilitates expansion of markets.
With the help of marketing research inputs, the company can identify the
markets that have good potential. Accordingly, the marketer can enter in new
markets.
7.
Dealer’s
Relationship:
-Marketing research
enables a firm to maintain good relationship with the dealers. Through dealer’s
research, the firm can get feedback from the dealers regarding their
expectations. Accordingly, the firm may take appropriate decisions relating to
dealer’s compensation and incentives, which will help to maintain good dealer’s
relationship.
