Need For Marketing Research
In recent years, the scope of business has expanded from local to global level. The size of the production has greatly increased. The production is now centralized, and the consumption centers are widespread. This has created a wide gap between the manufacturer and consumer. This has caused basic problems like what to produce and what to sell.
There is a need for marketing research to solve these problems.
There is a need for marketing research, to:
- Collect latest data on demand and supply in the market.
- Find out new market and create more demand for goods.
- Analyze the extent of competition.
- Find out the best technology for production, packaging, etc.
- Fill information gap between producers and consumers.
- Collect consumer-related data for decision making.
- Supply latest and reliable data to decision makers.
- Study changing consumer patterns.
Now lets discuss above points highlighting the need for marketing research.
1. Expansion of market
Due to development in means of transport and communication, market has expanded from local to global level. The structure of market has also changed. There is a need for marketing research to collect latest data on demand and supply in the market, extent of competition, etc. This data is used to make production & marketing policies and strategies.
2. Large-scale production
Automation has helped to produce goods of standard quality on a large scale. There is a need for marketing research to find out new market or to create more demands for these goods.
3. Increased competition
Competition is unavoidable in an open and globalized economy. It has endangered the survival and growth prospects of many firms. There is a need for marketing research to analyze the extent of competition. It also provides steps to fight competition.
4. Growth of science and technology
Increasing use of science and technology has helped to reduce the cost of production and improve the quality of production. There is a need for marketing research to find out the best technology for production, packaging, data, storing, etc.
5. Information gap
Due to centralized production and decentralized consumption, there is an information gap between producer and consumer. This information gap can be filled by marketing research. Hence it is needed.
6. Role of consumerism
Today, consumers are organised. They are aware of their rights and duties. They are now more selective. They will not accept an inferior quality product.
Consumer research is needed to collect demographic and psychological data about consumers. This data is used for decision making. There is a need for marketing research as consumer research is a part of it.
7. Information needs
There is a need for marketing research to supply latest and reliable data to the decision makers. This will improve the quality and success rate of decisions.
8. Consumer pattern
Consumers are now more quality conscious. They are willing to pay a higher price but for a better quality. There is a need for marketing research to study the likes and dislikes, preferences and interest of rural and urban consumers.