What is the importance of Marketing Research?
Marketing research is an important aid to modern competitive and consumer oriented marketing. Marketing research is now essential due to increasing competition, fast moving technological developments and changing consumer needs, expectations and attitudes. We can analyses the importance of marketing research by the following points.
1. To Make Marketing Decision
Marketing research helps the marketers to make a decision about the product or service. Sometimes a marketer night believed that the new product or service is useful for the customers. However, research may show that customers do not need a product or are meeting their needs with a certain competitor product and so on. Similarly good marketing research strives to provide options for the successful introduction of new products and services.
2. Service of Competition
Marketing research helps in ascertaining and understanding competitor information such as their identity, marketing network, customer so us and scale of operations. This helps in surviving and in certain cases, even leaving behind the competition. Most over, with market research you can also help to understand the under served consumer segments and consumer needs that have not been met.
3. Helps to Decide Target Market
Research helps to provide customer information in terms of their location, age, buying behaviour and gender. This helps the market zero in on the target markets and customers for their product and services.
4. Maximize Profit
Apart from profit maximizing step such as item optimization, customer profitability analysis and price elasticity, marketing research allows you to find out methods that can help you maximize profits. For example, a products price elasticity research can help you ascertain the impact of an increased price on the sales and the profits of a product. This emphasis on profitability also helps the company’s focus to shit form maximizing sales to increasing the profit of a company. This helps the company service in the long run and maximize its profits.
5. Increasing the Sales
Increasing the sales of your products or services helps a company in maximizing its profit. By understanding the customers, needs, wants and attitudes towards the products and determining whether your product fit the bill, marketer can increase their sales. This helps in not only increasing the sales to the target customers and people already using the product but also converting the non user into customers for the product.