Functions of marketing research
The following image depicts five basic functions of marketing research.
Image credits © Prof. Mudit Katyani.
The five main functions of marketing research (MR) are:
- Prediction, and
- Aid in decision making.
Now let's discuss these prominent functions of marketing research.
- Description : Marketing research gives full description about the consumers. It describes their age, sex, education, income, etc. It also gives a description about the competitors and the market situation. This description is used to take marketing decisions and solve marketing problems.
- Evaluation : Marketing research helps to evaluate the company's performance. It helps to evaluate the company's production and marketing policies. It finds out the customer reaction to the quality of the product, price, packaging, advertising, sales, promotions' techniques, etc. If the consumer reactions are bad, then the company must change its policies. It also compares the company's policies with the competitors' policies.
- Explanation : Marketing research gives explanations (answers) for all the marketing problems. For example, it answers in detail, why are the sales falling, why are the retailers giving negative reaction, etc. It gives all the causes or reasons for the problem. It also tells how to solve the problem.
- Prediction : Marketing research also gives predictions. Predictions mean to forecast or guess about the future. It gives a prediction about the future sales, future market opportunities, future risks, future marketing environment, future consumer behavior, etc. All the prediction may not be correct. However, these predictions help the company to make future plans and policies. It helps to take advantage of future opportunities. It also helps to avoid future risks.
- Aid in decision making : Marketing research helps the marketing manager to take decisions. It provides all the concerned data, which is necessary to take decisions. Decision making means to select a course of action from two or more alternatives. Decision making requires up-to-date and correct data. MR helps the marketing manager to take decisions. It provides all the data, which is necessary to take decisions. It also provides alternative course of action. It gives the merits and demerits of each course of action. It also helps the marketing manager to choose the best course of action. It helps the marketing manager in all aspects of distribution, selection of sales promotion techniques, selection of media for advertising, etc. So, MR helps to take quick and correct marketing decisions. It also helps to implement the marketing decisions.