Abstract
The purpose of this article is to provide better insights and current trends happening in the world in terms of market research development. The article would provide an understanding of the nature and scope of market research. This thinking will also discuss critical factors involved in various managerial decision problems and defining research objectives plus the methodologies used in marketing research.
The aim of this paper is to focus on various techniques- qualitative as well as quantitative used in evaluating a research plan and putting in shape. This article will take practitioners’ view with an example of McDonald’s in understanding the complexities involved in the whole process of market research.
Introduction
Since the inception of mankind, marketing research has continuously been influencing each and every aspect of human life. To better understand the world, to explore the opportunities, and to make an edge over competitors could not have been possible without efficient market research.
Market Research has undergone unprecedented developments during the last few decades. The last two decades have experienced a drastic shift in the thought process involved in effective market research on a global basis. Several organizations emerged and succeeded due to an efficient market research approach. These organizations have lived up to the expectations of consumers and satisfying their needs and want.
Forgotten roots of Marketing Research
Looking into the annals of history, the idea of marketing research was first conceptualized by Daniel Starch by the use of advertising, as an offshoot of the innovation of the golden radio age in the United States. Daniel emphasized that effective advertising should be seen, read, believed, remembered, communicated, and then acted upon.
People started following this ideology and tried to implement it in daily life. Soon, this definition took a broader perspective in terms of decisional issues, research objectives, and methods of research. Through “aided recall”, market research is defined as the ways of quenching the needs and wants of consumers and satisfying their expectations from the market.
Defining Marketing Research
“Market research is the methodology of conveying the information about the consumer to the marketer via collecting, analyzing, and processing information.”
Components of Market Research
Market research primarily uses three broad components to address management decision-making problems.
These three components basically constitute the foundation of market research.
Example
Suppose McDonald’s India is thinking of launching a new product line in the beverages category and improve the quality content of fast foods served to customers visiting or ordering from McDonald’s. This forms the management decision problem that whether McDonald’s should invest in a new product line and what should be done to improve the quality content of food served.
Market research objectives would include as how much sales would be generated in introducing a new product line, what would be the turnover, what consumers to target, how promotion strategy for new product line be launched, how the tradeoff between quality and taste should be maintained, how to gain an edge over competitors who are there in the new product line since years.
Need and Importance of Market research
The vital need for a market research approach could be easily witnessed in the interaction between an organization and its customers. Identifying the problems associated with customers and then putting the solution could only be possible through efficient and effective market research.
Market research has got its wide importance in current market trends and exploring the needs of customers.
- Provide better products and offerings through in-depth market research and understanding consumer needs.
- Launching an effective market plan to optimize the research and its components.
- Explore the opportunities and gain the first-mover advantage.
- Understanding the reaction of customers with respect to changes in the price and quality of products.
- Feedback from customers to gain an edge over competitors.
- Satisfaction level of customers with the current offerings.
- Service representatives hearing from customers.
In the example mentioned in the article, market research would be vital in capturing the insights and feedback, responses for the new product line, and what changes should be introduced to improve the product and quality of food served.
Components of Market Research
Market research could help organizations with its two strands:
- Problem Identification research
- Problem Solving research
Each of these strata could be further categorized into several subdivisions which are shown below:
Under problem identification comes:
Forecasting demand
Sales Analysis
Market potential
Share analysis
Problem Solving comes:
Product research
Pricing research
Promotion research
Segmentation research
In the above-mentioned example, McDonald’s should identify the critical areas before launching a new product line in any place. McDonald’s should identify the potential of the market, should put some stress testing to analyze the market. McDonald’s should set up price according to the purchasing power of the income group of that area.
