Market research is the process that includes the actions of identification, compilation, analysis and dissemination of information with the purpose of improving marketing decision making. Its implementation occurs, basically, for two reasons: (1) to solve problems, for example, to determine the potential of a market; and / or (2) to identify problems, for example, to know why a product does not have the expected consumption. In essence, it seeks to know the client, thus complying with the first premise of marketing.
Next, through a bibliographic exploration, characteristics of this are presented, one of the topics that is most important within the marketing function.
What is market research?
It is the systematic collection, recording and analysis of data regarding a particular market, where market refers to a specific group of customers in a specific geographic area. (American Marketing Association)
It is the search for needs, desires, tastes and preferences of consumers in relation to a product or service. (Harrison, p.1)
It consists of finding and obtaining relevant, timely, efficient and accurate data that aims to reduce risk in making commercial and marketing decisions. (del Castillo, p.19)
Marketing research comprises the set of activities that seek to define, collect and analyze, in a systematic way, information that allows feeding the marketing decision process, in order to make it more effective. (d 'Astous et.al, p.7)
It is the identification, collection, analysis, dissemination and systematic and objective use of information in order to improve decision-making related to the identification and solution of problems and marketing opportunities. (Malhotra et.al, p.7)
Because it is important?
In general, it can be said that there are two reasons or objectives to implement a market research: (1) generate the information to be more successful with the marketing of a product or service; and (2) generate the alerts of the case to avoid the failure to market it. The two could be summarized in one: reducing uncertainty for decision making.
Del Castillo (p.20) mentions the following benefits:
- It enables products to be better adapted to demand conditions; on the one hand, it makes the sales system and the performance of the sellers more efficient; on the other, it reduces the cost of sales; on the other hand, it encourages managers to reassess target goals - stimulates staff by knowing that your company has a thorough understanding of its market situation and is targeting well-selected goals.
Mercado (p.102) suggests the following:
- It indicates who the buyers of the product or service are. It locates new habits, thus allowing to launch new products. It discovers consumer preferences. It verifies if the current products on the market are adequate. It makes the image of the company known to the consumer.
Types of market research
The methods to be applied to investigate the market vary depending on the purposes and circumstances of each particular case. The most common are the following:
Background research is what happens to the so-called secondary data that consist of information and statistics that exist somewhere (cameras, companies, databases, etc.) and that can be used to gain knowledge of the commercial phenomenon in question. Although its cost is low, the information that can be obtained in this way is very general and serves only as a first approach to the subject. In any case, it is important that the researcher takes care that it is reliable, up-to-date and relevant to the aims pursued.
Quantitative research aims to obtain primary data by conducting surveys of those involved in the commercial process. Both its cost and its usefulness are much higher than in the previous method. Statistical procedures are used to obtain respective samples of what is to be investigated in order to ensure that the results have a reasonable validity. The design of the questionnaires, the samples, the entertainment of the interviewers, the supervision and control of work, the information processing, its analysis, as well as the formulation of conclusions are all factors that in this case acquire fundamental relevance for success. effort undertaken. The method is one of the most used to research the market.
Qualitative research deepens each survey, with a view to obtaining more precise and detailed information, although covering a much smaller number of cases.
Motivational research consists of small group sessions of people that are conducted by a psychologist specialized in commercial inquiries. This works based on a guide of guidelines, designed to guide you about the aspects to investigate. The information that is possible to obtain in this way is of much greater depth than in the previous methods. Both the motivational and the qualitative are usually combined with the in order to confer the study statistical validity.
Experimental research involves conducting an experiment with consumers in order to appreciate their relationship to a certain commercial action.
Market research can also be categorized according to the phase of the marketing process in which the information is collected. From this point of view, three types can be identified:
Exploratory research is appropriate early in the process. It is designed to obtain a preliminary notion of the situation with minimal cost and time. Research design is characterized by its flexibility to be sensitive to the unexpected and to discover other points of view not previously recognized. Broad and versatile approaches are used. These include secondary sources of information, observation interviews with experts, group interviews with specialists, and cases.
Conclusive research provides information that helps managers evaluate and select a course of action. Its design is characterized by focusing on formal procedures. This includes clearly defined research objectives and information needs. Generally, a detailed questionnaire is written together with a formal sampling plan. The information to be collected will be related to the alternatives under evaluation. Possible research plans include surveys, experiments, observations, and simulations.
Performance monitoring is an essential element to control marketing programs according to the plans outlined. Deviation from the plan may result from inadequate program execution and / or unanticipated changes in contextual factors.
Effective performance monitoring includes the marketing mix and context variables, along with traditional performance measures such as: sales, market share, profits, and return on investment.
The different types of market research can be carried out by work teams of the company, but in most cases entrusted to specialized firms.
McDaniel and Gates (p.10-12) refer to two basic types:
- Applied research. It is geared towards a specific pragmatic problem, better understanding of the market, determining why a strategy or tactic failed, or reducing uncertainty in management decision-making. It can be classified into three broad categories:
- Programmatic Research: This is done to develop marketing options through market segmentation, analysis of market opportunities or studies of consumer attitude and product use. Selective research: it is used to test decision alternatives. Evaluation research: it is done to evaluate the performance of the program; It includes tracking advertising recall, conducting organizational image studies, and examining customer attitudes about the quality of a company's service.
Malhotra et.al. (p.7 and 8) make the following classification:
- Investigation of identification of the problem. It detects problems that are not obvious, but that exist and are likely to manifest in the future. Examples are studies of market potential, brand image, business trends or short and long term forecasts. Investigation of problem solution. It is undertaken once the opportunity or problem is detected, in order to make decisions to take advantage of it or solve it. It is subdivided into:
- Segmentation Investigation Product Investigation Promotion Investigation Pricing Investigation Distribution Investigation
The market research process
The market study is made up of five stages (Gitman and McDaniel, pp. 437-440):
- Definition of the marketing problem and research objectives. Two key questions allow you to correctly define the marketing problem, what is the information required for? And is the information already available? Choice and design of a research method. There are three methods: survey, observation, and experiment. Survey research uses questionnaires and can be personal or impersonal. Observational research consists of observing how individuals act but not interacting directly with them. In experimental research, the researcher changes one or more variables and observes the effects that these changes produce on another variable. Data collection. Two types of data are used, the primary ones, which are collected directly from the original source, and the secondary ones, which were previously collected for another project and / or which may come from various sources such as government entities or academic researchers for example. Data analysis. All the data obtained are interpreted to draw conclusions. Data presentation. The conclusions and recommendations are presented to the decision makers.
Types of questions in a market research survey
According to the answer that they admit:
- Open (questions that only ask questions, without establishing response categories) They should be used very little in the surveys because after the survey they must be closed and then standardized. Closed: Dichotonic (they establish only 2 response alternatives, «Yes or No »And sometimes Ns / Nc) They should be used only for well-defined topics that admit these 2 alternatives as an answer. Categorized (in addition to the question, they establish the response categories): in turn they are subdivided into: Spontaneous response: the The interviewer should not read the response to the respondent. Suggested response: the interviewer reads the questions to the respondent. Rating: the interviewer reads a scale of increasing or decreasing intensity of response categories.
According to their role in the questionnaire:
- Filter: they are widely used in questionnaires to eliminate those people who are not affected by certain questions, that is, they mark whether or not subsequent questions will be asked. Battery: all questions deal with the same topic and must always go together in the questionnaire in the form of a battery, starting with the + simple ones and then the + complex ones. This is called a “question funnel.” Control: they are used to check the veracity of the respondents' answers and usually what is done in these cases is to place the same question but written differently in separate places one from the other Damping: they refer to the fact that when we are asking rough topics or we think that they will be reluctant to answer, we must ask softening the question and not ask abruptly and directly.
According to its content:
- Identification: they place the conditions in the social structure. Eg Age, sex, profession. Action: they deal with the actions of the interviewees. Eg Do you go to the movies? Do you smoke? Intention: they inquire about the intentions of the respondents. Eg Are you going to vote? Opinion: they deal with the opinion of respondents on certain topics. Eg What do you think about…? Information: they analyze the degree of knowledge of the respondents about certain topics. Reasons: they try to know the reason for certain opinions or actions.
Market research. Video-lesson
In the following video conference, Professor Fernando Doral Fábregas does, in just under 1 hour and 30 minutes, a general review of the most important concepts in market research: definition, characteristics and uses, process, sources of information and classification.
References
- Benassini, Marcela. Introduction to Market Research: An Approach for Latin America, Pearson Education, 2001 Bird, Polly. Learn market research in a week, Gestión 2000, 2008.d 'Astous, Alain, Sanabria Tirado, Raúl y Sigué, Simón Pierre. Market Research, Editorial Norma, 2003. del Castillo Puente, Ángel María. 18 Fundamental Axioms of Market Research, Netbiblo, 2008 Duboff, Robert and Spaeth, Jim. Market Research Matters: Tools and Techniques for Aligning Your Business, John Wiley & Sons, 2000. Forsyth, Patrick. Marketing on a Tight Budget, Management 2000, 2002. Gitman, Lawrence J. and McDaniel, Carl D. The Future of Business, Cengage Learning Editors, 2007. Harrison, Mark. The best in market research, Susaeta Ediciones, 1996. Malhotra, Naresh K., Dávila Martínez, José FJand Treviño Rosales, Magda Elizabeth. Market Research, Pearson Education, 2004.Novoa, Fabio. Steve Jobs' innovation mantras, In: Inalde Magazine. Issue No. 35. December 2012, pp. 34-43.McDaniel, Carl and Gates, Roger. Market research, Cengage Learning Editores, 2005. Mercado, Salvador. Programmed marketing: principles and applications to orient the company towards the market, Editorial Limusa, 1997. Zikmund, William and Babin, Barry J. Market Research, Cengage Learning Editores, 2008.Programmed marketing: principles and applications to orient the company towards the market, Editorial Limusa, 1997. Zikmund, William and Babin, Barry J. Market Research, Cengage Learning Editores, 2008.Programmed marketing: principles and applications to orient the company towards the market, Editorial Limusa, 1997. Zikmund, William and Babin, Barry J. Market Research, Cengage Learning Editores, 2008.
