Explain the uses of marketing research.
For taking numerous marketing decisions a lot of information is required and that can be obtained with the help of marketing research.
Marketing Research is useful to the marketer in providing the following information:
- Information about the Market:
(i) Analysis of Consumer behaviour (their attitude and preferences)
(ii) Analysis of competitor behaviour and performance
(iii) Analysis of market share
(iv) Analysis of the market potential for existing products (e.g. market size, growth, changing sales trends)
(v) Forecasting future demand for existing products
(vi) Assessing the potential for new products
(vii) Study of market trends
- Information about Products:
(i) New product development
(ii) Comparison of existing products in the market (e.g. price, features, costs, distribution)
(iii) Likely customer acceptance (or rejection) of new products
(iv) Latest product technology that may threaten existing products
(v) Forecasting new uses for existing products.
- Information about Pricing in the Market:
(i) Analysis of customer’s real purchasing power
(ii) Estimates and testing of price elasticity
(iii) Analysis of pricing strategies of Competitor
(iv) Analysis of revenues, margins and profit
(v) Customer perceptions of fair pricing.
- Information about Promotion in the Market:
(i) Advertising effectiveness
(ii) Effectiveness of sales force (personal selling)
(iii) Extent and effectiveness and other sales promotional tools.
