Question

Explain Marketing Research and why it’s so important in the business decision making process. Can you provide an example of a business that should have NOT opened in a community or failed to due lack of Marketing Research?

Answer 1

Marketing Research : Marketing Research is the process of identifying how well a product will fit in the market. It helps to identify weather a product could withhold amongst the cunsumers and competitors. Market Research is the process of gathering all raw information about the market, consumers and its competitors. Marketing research helps to forecast the future contigencies that might occur. It shows how well the product will be received by the cunsumers. The main purpose of Market Research is to find the target market and to know the needs and wants of target market. Its helps to gather informations based on what all problems are likely to be faced by the organisation. Two types of research will be conducted and they are as follows :

Primary Research : It is the research wherein the organisation directly collects informations.

Secondary Research : It is a form of research wherein some already collected informations are gathered from newspaper etc.

Importance of Market Research in Decision Making :

The major decision of weather the product should be introduced in the market or not itself is decided by conducting a market research. The results from marketing research could be reliable upto a great extent. Most of the oraganisation will conduct a market research before entering in to a business. There will be many areas of the business which the authorities won't be able to know much, but through a good market research the inefficiency in such areas could be easily identified. Through research organisation could know about what amount of maximum profit the business will be able to make. Many key business decisions are greatly influenced through a well oriented market research. The best business strategy to be implemented is known after conducting the market research. Survival is the key aspect for any business or organisation and such an aspect could be understood after conducting the market research.

Example of business that failed due to lack of market research :

A non vegetarian hotel was introduced in an area or community where the 90% of the population are vegan and the rrest of 10% people are also not regular customers to non vegetarian products. Here this organisation came into existence without conducting a proper research regarding likes and dislikings of the consumers.