Question

Why is marketing research important to the development of a marketing strategy? Provide a specific example. the course is Marketing 421T

Answer 1

It shall be noted that market research is the action of gathering, analyzing and interpreting information to help solve marketing challenges.

Today, markets are no more local. They have become global. Manufactures find it difficult to contact customers and control distribution channels. Competition is equally severe. The consumer needs are difficult to predict. Market segmentation is a compli­cated task in such wide markets. The marketing intelligence provided through marketing research not only helps in framing but also in implementing the market strategies.

1) It helps make educated decisions for example determining the feasibility of launching a new product before dedicating time and budget into the new venture.

2) It helps to enlighten your marketing activities – such as understanding the requirements of the target audience, helping to understand what key messages you should convey and how to convey them

3) It helps understand the dynamics of the business environment, customers, and their needs and preferences. It helps identify new opportunities for the business.

4) Planning to launch a new product, or export to a new market without adequate research is a recipe for disaster.

5) Used correctly, market research is a powerful tool to help minimize the risks involved when making key business decisions.

6) It provides great insights into the business and on the wider marketplace. Market research can identify how customers and potential customers might view the business and identify gaps in customer expectations. This is powerful information to have when completing the marketing strategy. Having good market intelligence helps to minimize risks when making key business decisions.

7) It will help to understand who is buying your product or service, who is not buying your product or service, what motivates them, and whether they are loyal to your brand – ultimately leading to increased sales over time.

Example:

The famous  “New Coke” example from the 1980s. While research and focus groups were extremely favorable of the new coke flavor, it failed to understand the significance of the brand affinity and nostalgia that consumers had with the original taste of Coke.