Table of Contents
Why do we do Marketing Research and How Marketing Research is Done?
Marketing Research: There are still many people who think that marketing research and market research are the same things. However, the two are different terms.
Market research is more of a specific, predetermined market. Meanwhile, marketing research is not only focused on product or market aspects but also covers other broader things.
Definition of Marketing Research
The world organization body, American Marketing Association (AMA), conveys the definition of marketing research as a function that connects customers, consumers, or the general public with marketers through information used to identify marketing problems and opportunities.
Meanwhile, Philip Kotler defines marketing research as the systematic design, collection, analysis, and reporting of data or findings relevant to certain marketing situations faced by the company.
Simply put, marketing research is the systematic and objective identification, collection, analysis, and presentation of information to help companies make decisions related to problem-solving and finding opportunities in the marketing process.
Marketing Research Objectives
Marketing research is carried out with the aim that challenges and opportunities in the marketing process can be identified properly.
With marketing research, companies can process, analyze, and present data based on facts in the field to produce valuable information about it.
The more specific marketing research objectives include:
Understanding consumer needs
Consumer needs and preferences that often change make companies need to adjust the right marketing strategy.
Through marketing research, companies can find the right formula to market their products according to the needs and tastes that consumers want
Identify market opportunities
By conducting marketing research, companies can get the opportunity to develop a new product that is needed but has not been widely sold in the market.
Describing future trends
Marketing research carried out will provide benefits and make the company one step ahead of other companies. That way, the products that are produced either in the form of goods or services are the products that are most needed by consumers.
Minimize business risk
Companies that conduct marketing research will use the data from their research, to anticipate and prepare ways to deal with threats that may occur in their business environment.
Reduce the risk of product failure
The data and information obtained from marketing research can be useful for developing the marketing process itself. As a result, the products marketed to consumers are products they need. So that the risk of product failure can be minimized.
Marketing Research Function
There are four functions of marketing research that you need to pay attention to, namely:
The first function of marketing research is understanding. The marketing research function aims to understand what are the complaints and needs of consumers.
To carry out this function, marketing research that is often carried out will describe the habits or behavior of consumers and the expectations they need for a product.
The next marketing function is predicting. The predicting function is a marketing function that is quite risky. This is because the relative needs of consumers cannot guarantee that a product will last long in the market.
Therefore, this research will always be a reference material for targeting new target markets. Likewise, if the company needs a new marketing strategy, this research will still be the main source of assessment.
The third marketing function is controlling. Controlling will be used to see every process in the business that is running.
This function will require data on ongoing marketing activities to obtain information about the position of the product in front of consumers, current trends, demographics, and the effectiveness of the marketing tools used.
The last function is evaluating. The evaluate function is generally used to evaluate marketing programs that have been carried out previously.
Another function of evaluating in marketing research can also be used to consider and evaluate the position of a company’s product among its competitors’ products.
Types of Marketing Research
1. Based on research objectives
When viewed from the research objectives, marketing research is divided into three types, namely:
This type of research is used to find out the purpose of cause and effect. For example, how much influence the discount has on consumer perceptions.
The type of research based on the next objective is exploratory research. This research is conducted to understand a phenomenon in more detail. Exploratory research is more often used to develop a new product.
Next is descriptive research which is used to understand the characteristics of a phenomenon. For example, a business that wants to take a closer look at the shopping patterns made by consumers when they visit a shopping center.
2. Based on the research object
The next type of marketing research is based on the object that becomes the research material. From here you will find four types of marketing research based on their object, namely:
This type of production research is needed to be able to see what kind of products might be made to meet consumer needs.
Meanwhile, price research is needed to determine the suitability of the price with the product to be marketed. On the other hand, this research can also be useful for analyzing the market prices set by its competitors
Promotional research is used to find out what promotion method is the most appropriate, and with this research, you can also evaluate the performance of previous promotions.
Well, the last type of research is distribution research. This research is used to ensure that the ordered product reaches the customer safely. You can monitor the distribution journey of a product or service through this type of research.
Stages of Marketing Research
To do marketing research, there are several stages of marketing research that you can use as a reference, namely:
1. Formulate the problem
The first step you need to do to do marketing research is to formulate a problem.
This process is considered important because by formulating the problem, the company can understand the objectives to be achieved from the research to be carried out.
2. Determine the research design
Before you can collect data, you need to define detailed procedures on how to collect data, how to test hypotheses and the methods that will be used to process the data later.
3. Designing data collection methods
The type of data that will be used in the research is in the form of primary data and secondary data. This primary data is taken directly from the subjects encountered in the field.
While secondary data will usually be in the form of data taken from a source, such as books, journals, websites, and other relevant library sources.
The next step in conducting marketing research is to take a sample and start collecting data in the field. You can take samples based on a predetermined sampling method.
5. Perform data analysis
The data that has been collected is then processed and analyzed to produce conclusions that can give you instructions regarding the research you are doing.
6. Make a research report
The last stage of marketing research is to make a report on the results, conclusions, and research recommendations which are then submitted to management as a basis for making decisions at the company.
This report will be the reference and standard in conducting the evaluation process of the research that has been carried out.
Marketing Research Example
To make it easier to understand, consider the following examples of marketing research.
1. Hand Sanitizer marketing research
During a pandemic, the use of hand sanitizer is highly recommended. However, the problem that may arise with these products is the alcohol content which can make the skin dry and even itchy.
Therefore, manufacturers research so that their products can continue to sell but do not have a bad effect on consumers who use them.
To conduct this research, manufacturers replace alcohol with natural antiseptic products that are more friendly to the skin, such as olive oil, betel leaf, aloe vera, and so on.
Doing the right marketing research can help the company to be able to win the competition with its competitors. This is because the products made by the company are better able to meet the needs of its users.
2. Fast food marketing research
Another example is marketing research on fast food. In this case, the research will focus on selling instant noodles, which are the best-selling instant noodle products in India.
As instant noodle producers, they feel the need to make efforts to improve the products they sell. Then they start doing research based on the problems faced by buyers. Then they conducted interviews and distributed questionnaires to find the problems they were looking for.
The result found complaints from the public regarding the portion of noodles they buy. These consumers feel that the portion of one packet of noodles purchased is too small, while the two servings of noodles purchased are considered too much.
From the results of this discovery, manufacturers are looking for solutions to solve these problems. Then found a solution to the problem by offering a new product. The new product offered is instant noodles in jumbo size.
Through this new product, these problems can be solved. The existence of this problem increases sales of the products they sell because manufacturers provide new solutions to meet consumer needs.
So, now you understand what marketing research is, right? You need to remember that marketing research and market research are two different things. For that, make sure you find out what you want to do so that the final results you get later are to the marketing needs of your company.