Question

If market research is such a valuable element of marketing, what drivers influence management's decision to not focus on it or have limited financial support for it?

(250 words)

Answer 1

Market research refers to conducting a study and analaysis to understand the target market and consumers and their reaction to the product or service intended to be sold. It is a key componet to ensure the success of a newly launched product or service.However, many businesses do not conduct adequate market research while launching a new product and it becomes a key problem for them.

The primary reason for this is getting carried away by a business idea. When an idea which is good on paper is the driving force, the businessmen do not consider it necessary to test its viability. There is too much confidence in the launched product or service.

Some businesses do not conduct market research as they do not trust outsiders to keep the business idea confidentail. There is a fear that the business idea might be copied by someone else if a market research team is deployed.

Further, for many businesses finance is a genuine constraint. Even with financial aid, they just cannot afford to conduct a market research and go with their gut feeling about the launched product or service.