Marketing research (MR) is concerned with all aspects of marketing, relating to product design and development, product-mix, pricing, packaging, branding, sales, distribution, competition, target customer segments and their buying behaviour, advertising and its impact. Specifically, the scope of MR includes customers, products, distribution, advertising, competitive information and macro-level phenomenon.
1) Marketing is concerned with identifying and fulfilling customer needs and wants. Thus, MR should precede marketing. The unfulfilled wants should first be identified and translated into technically and economically feasible product ideas, which then should be marketed to the customers. But mere identification of customer wants is not enough. Marketing requires continuous effort to improve the existing product, increase sales and beat the competition. For this, it is important to know who the customers are for your products (whether housewives, teenagers, children), what their socio-economic profile is (in terms of income,
education, cultural, religious and professional background) and where they are concentrated in terms of location. Besides this information, it is also important for you to know the process by which a prospective customer arrives at a decision to buy your product. If you know the sequential steps in the purchase process
and the influencing variables in each, you can design appropriate strategies to exert a positive impact on them, and thus ensure an actual purchase. The study of consumers and their purchase behaviour is so important that there is a separate, special body of knowledge known as Consumer Behaviour.
2) The second area which is of direct concern for MR is product and product design. MR is helpful in determining the final design of the product and its physical attributes of colour, size, shape, packaging, and brand name. it is useful in arriving at the right combination of product mix, the number of variations of the basic product, accessories and attachments. It can also help decide the quantities to be produced according to the projected demand estimates. MR can also be used to gauge customer reactions to different prices.
3) Marketing research helps in discovering what types of distribution channels and retail outlets are most profitable for your product. On the basis of comparative information for different channels and different types of outlets, you can choose the combination most suitable for your product. Distributor,
stockist, wholesaler or retailer may represent one kind of distribution channel in contrast to another in which you may use only the distributor and retailer. Consider an example:
1) Marketing is concerned with identifying and fulfilling customer needs and wants. Thus, MR should precede marketing. The unfulfilled wants should first be identified and translated into technically and economically feasible product ideas, which then should be marketed to the customers. But mere identification of customer wants is not enough. Marketing requires continuous effort to improve the existing product, increase sales and beat the competition. For this, it is important to know who the customers are for your products (whether housewives, teenagers, children), what their socio-economic profile is (in terms of income,
education, cultural, religious and professional background) and where they are concentrated in terms of location. Besides this information, it is also important for you to know the process by which a prospective customer arrives at a decision to buy your product. If you know the sequential steps in the purchase process
and the influencing variables in each, you can design appropriate strategies to exert a positive impact on them, and thus ensure an actual purchase. The study of consumers and their purchase behaviour is so important that there is a separate, special body of knowledge known as Consumer Behaviour.
2) The second area which is of direct concern for MR is product and product design. MR is helpful in determining the final design of the product and its physical attributes of colour, size, shape, packaging, and brand name. it is useful in arriving at the right combination of product mix, the number of variations of the basic product, accessories and attachments. It can also help decide the quantities to be produced according to the projected demand estimates. MR can also be used to gauge customer reactions to different prices.
3) Marketing research helps in discovering what types of distribution channels and retail outlets are most profitable for your product. On the basis of comparative information for different channels and different types of outlets, you can choose the combination most suitable for your product. Distributor,
stockist, wholesaler or retailer may represent one kind of distribution channel in contrast to another in which you may use only the distributor and retailer. Consider an example:
A firm is marketing refrigerators through distributors and retailers in the Eastern zone. The understanding between the firm and distributors is that the latter will provide the after-sale-
service. Analysing the sales figures, the firm finds that the sales level in the Eastern zone is much lower than in the other zones.
Marketing research indent reveals that one of the reasons for this low sales performance is the poor after-sale service provided by the distributor. In a high value, durable product such as the refrigerator, the quality of after sales service is an important factor influencing the customers’ purchase decision regarding the specific brand to buy. The firm decides to do away with the distributor and instead opens its own branch office. The new distribution channel comprising branch office and retailers is
operationally more expensive, but the company can now control the quality of after sales service as well as the other marketing inputs. The result is improved sales and the incremental cost associated with the new distribution network is justified.
4) Most companies provide advertising support for their products. In some cases, the amount spent on advertising may be small, while in others, it may run into millions of naira. Irrespective of the actual amount spent on advertising, each firm would like to maximise the return on every naira that it spends. Marketing research can help the firm to do this. Research can provide information on the most cost-effective media, help determine the advertising budget, measure the effectiveness of specific advertisements, advertising campaigns and the entire advertising strategy. Research also provides information on the size and type of audiences for different advertising media channels. This information can be used to refine the advertising strategy to make it more relevant and sharply focused. Advertising research is also helpful in determining customer perceptions about the image of specific branches and companies.
5) Marketing research is being increasingly used at the macro-level. Government of Nigeria spends colossal amounts on various socio-economic development schemes and projects. If the objectives of these projects are not in tune with the prevailing consumer tastes, attitudes and values, the entire amount may prove to be a total waste. Just as a business organisation needs MR to monitor the efficacy of its strategy in achieving the objectives, so does the government and its departments.
service. Analysing the sales figures, the firm finds that the sales level in the Eastern zone is much lower than in the other zones.
Marketing research indent reveals that one of the reasons for this low sales performance is the poor after-sale service provided by the distributor. In a high value, durable product such as the refrigerator, the quality of after sales service is an important factor influencing the customers’ purchase decision regarding the specific brand to buy. The firm decides to do away with the distributor and instead opens its own branch office. The new distribution channel comprising branch office and retailers is
operationally more expensive, but the company can now control the quality of after sales service as well as the other marketing inputs. The result is improved sales and the incremental cost associated with the new distribution network is justified.
4) Most companies provide advertising support for their products. In some cases, the amount spent on advertising may be small, while in others, it may run into millions of naira. Irrespective of the actual amount spent on advertising, each firm would like to maximise the return on every naira that it spends. Marketing research can help the firm to do this. Research can provide information on the most cost-effective media, help determine the advertising budget, measure the effectiveness of specific advertisements, advertising campaigns and the entire advertising strategy. Research also provides information on the size and type of audiences for different advertising media channels. This information can be used to refine the advertising strategy to make it more relevant and sharply focused. Advertising research is also helpful in determining customer perceptions about the image of specific branches and companies.
5) Marketing research is being increasingly used at the macro-level. Government of Nigeria spends colossal amounts on various socio-economic development schemes and projects. If the objectives of these projects are not in tune with the prevailing consumer tastes, attitudes and values, the entire amount may prove to be a total waste. Just as a business organisation needs MR to monitor the efficacy of its strategy in achieving the objectives, so does the government and its departments.
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