Marketing Research: Meaning, Scope and Uses

What is Marketing Research?

Marketing Research is defined as a study that consists of multiple techniques used by companies in order to gain more information about their target audience and the current market. Market research helps to gain information regarding current trends, profits, losses, economic and social factors affecting the market, and market strategies used. By utilising the gained information the companies and producers improve the overall quality of their products, their advertisements, and other marketing strategies.

Marketing Research helps companies to know the requirements of their customers and develop strategies that will help them reach out to their customers easily. As the market grows for a particular product, there increases the involvement of parties other than producers and consumers. This decreases the direct gap between both. Therefore the use of marketing research becomes necessary as it helps to get the required information.

Scope of Marketing Research

1. Research on Market: Research on Market studies about current market trends and products. It does a comparison between both the current market and the potential market. It analyses areas such as:

• Size of market
• Analysis of Market Shares
• Selecting the Target Market
• Analysing the need or demand for new products
• Setting sales territories and quotes
• Assessing current market trends and projecting future market trends

2. Research on Advertising: Advertisements are considered one of the major parts of marketing. Higher budgets are used to make effective advertisements. The research on advertising studies areas such as:

• Selection of media that will be used for advertising, such as videos, images, articles, blogs, podcasts, etc.
• Selection of advertising channels
• Studying promotion elements
• Positive and negative effects of advertisement in society and market
• Advertising role at different stages of product life cycle
• Government restrictions on advertising
• Studying competitors’ advertising strategies and practices

3. Research on Pricing: The price of the product is the major aspect considered by consumers while purchasing the product. Therefore proper research is made regarding the pricing. Having relevant pricing is important to attract more customers. The research on Pricing makes an analysis on below points:

• Studying pricing policies
• Studying offers and discounts
• Comparing the quality and price
• Use of various strategies for setting prices
• Pricing strategies on different stages of the product life cycle
• New product and pricing policies

4. Research on Distribution: In today’s Marketing world, distribution plays a vital role in the success of the product. The selection of a proper distribution channel is important. Many distribution channels are being used between producers and consumers. Research on distribution includes the below analysis:

• Studying various distribution channels
• Selecting from direct and indirect distribution channels
• Studying online marketing
• Studying factors and strategies used for distribution
• Study on physical distribution and ancillary services
• Legal issues related to distributions

5. Research on Product: Research on Products involves detailing with the products and services. The research covers all the issues and details that are related to the product. Understanding the use and quality of the product is essential before it is launched in the market. Therefore, research on products is important. It covers the study of below points:

• Characteristics of product
• Uses of product
• Studying other competitors available in market
• Studying about problems of consumers.
• Studying the lifecycle of products, packaging, sale, etc.
• Determining the uses of existing products
• Finding out the need for new product development
• Product life cycle
• Consumer Adoption Study

6. Research on Sales Methods and Policies: Research on Sales Methods and Policies consists of a study that is related to sales of the product. For sales, the distribution of products is important. The strategies used for sales improve the overall business and its profit. This study covers below points:

• Studying sales methods that are currently being used
• Analysis of sales records
• Management of sales force with parameters such as size, control, etc.
• Studying the sales department
• Study of advertisements, incoming customer traffic, etc.
• Study on activity and effectiveness of salesmen

7. Research on Business Environment and Corporate Responsibility: Research on the Business Environment and Corporate Responsibility consists of a study that is related to marketing problems. This study is conducted for big businesses and analyses the data. It helps the business to work on its business strategies and work accordingly. This research involves analysis on:

• Availability of product-related resources
• Long-term and short-term goals of the business
• Social, financial, and cultural factors that affect the business
• Income, economic growth, and Policies for business
• Impacts of Acts and Legal Provisions
• Technological Aspects

Uses of Marketing Research

Marketing research is used by many businesses and applications. Below are some uses of Marketing Research:

1. Analysing the current market and its situation: Marketing research helps a company to analyse the current market scenario. This analysis consists of identifying the current market trends, economic condition, profit and loss, pricing, distribution, etc. This analysis helps to confirm the strategies and methods that are used.

2. Studying the company’s strengths and weaknesses and utilising these strengths to gain advantages in the business: Through marketing research, a business can verify its strengths and weaknesses with the help of a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. This helps businesses to work more on their strengths, reduce their weakness and improve accordingly.

3. Continuously diagnosing the threats that can occur in business: Continuously identifying the threats that can occur is an important task for the growth of a business. By analysing the threats that can occur, a business can take all the preventive measures that are needed and prevent them from loss.

4. Identifying the strengths and strategies used by competitors: Marketing research enables companies to gain insights into their competitors’ strengths, weaknesses, and strategies. Understanding the competitive landscape helps businesses position themselves effectively and devise strategies that can exploit competitors’ weaknesses or differentiate from their strengths.

5. Studying market opportunities and utilising them at the right time: Marketing research helps to analyse the available opportunities in the market. It helps to analyse trends, the needs of customers, and their segments.

6. Studying the marketing patterns of customers: It is important to study the purchasing patterns of customers; their habits, choices, motivations, and preferences they use. This analysis helps the company to enhance its products according to the need of customers and change its marketing strategies and techniques.

7. Analysis of other competitors present in the market: Marketing research helps to study other competitors that are present in the market. This analysis helps to improve strategies used by the company in order to play a leading role in the market, change their approaches, use statistics, and then perform accordingly.

8. Studying the overall progress done by the company: Studying the overall progress helps to analyse the profitable strategies and their techniques. By measuring some parameters such as brand awareness, satisfaction of customers, profits, and marketing a business can improve by working according to the study.