This article talks describes in detailed reasons for market research. There are numerous reasons why marketers seek to conduct market research, but, in general, these fall into three broad categories.
3 main reasons for market research
The uses of market research include the following few reasons such as Descriptive Reasons, Exploratory Reasons and Casual Reasons.
1. Descriptive Reasons
Identify and describe what is happening on the market. Also, predict what is likely to happen in the future.
The focus of descriptive research is to provide an accurate description and explanation for something that is occurring on the market or is likely to occur in the future.
For example, what age group is buying a particular brand, what is a product’s market share in a specific geographic region, how many competitors does a company face, etc.
This type of research is by far the most popular form of market research. But, to be considered useful, it must be conducted correctly, which means the marketer must adhere to a strict set of research requirements to capture relevant results.
2. Exploratory Reasons
Investigate and examine new possibilities in the market that are mostly unknown.
The exploratory approach attempts to discover general information about some topics that are not well understood by the marketer.
For instance, a marketer knows about a new Internet technology for marketing a product but the marketer does not know much about the technology. When gaining insight on an issue is the primary goal, exploratory research is used.
The basic difference between exploratory and descriptive research is in the research design. Exploratory research follows a format that is less structured and more flexible than descriptive research. This approach works well when the marketer does not understand the topic or the topic is new, and it is hard to pinpoint the research direction. The downside, however, is the results may not be as useful in aiding a marketing decision. So why use it? In addition to offering the marketer basic information on a topic, exploratory research may also provide direction for a more formal research effort.
For instance, exploratory research may indicate who the key decision makers are in a particular market thus enabling a more structured descriptive study to be targeted to this group.
3. Casual Reasons
See how something affects something else. Explain a variety of matter related to marketing to find out why things are happening.
In this form of research, the marketer tries to determine, if one variable affects another variable. In essence, the marketer is conducting an experiment. To be effective, the design of causal research is highly structured and controlled, so that other factors do not affect those being studied.
For example, marketers use this approach to test marketing scenarios such as what might happen to product sales, if changes are made to the product’s design.
If causal research is performed well, the marketer may be able to use results to forecast what might happen, if the changes are made.
In summary, marketing managers may seek advice from marketing research specialists, and indeed it is important that research reports should specify alternative courses of action. And, the probability of success, where possible, of these alternatives. However, it is marketing managers who make the final marketing decisions, and not the researcher.
