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Marketing research is the systemic approach to collecting and…
Marketing research is the systemic approach to collecting and utilizing information regarding decision making and solutions in marketing. Marketing research systemic practices creates “methodically sound and well- documented” information for specific marketing questions (Malhotra, 2019, p. 6). Marketing research can center around problem-identification research, such as trends and forecasting, and problem-solving research, such as pricing and distribution research. Although marketing research is broken into these two concepts, research from each category often support and complement each other (Malhotra, 2019). Both concepts use a variety of strategies and approaches when collecting and analyzing marketing research findings. Marketing research can play different roles in marketing decisions based off the concepts and tactics chosen to conduct the research as well as a marketing manager’s support of utilizing findings in marketing strategies.
A marketing research study focusing on restaurant location and customers during lunch time found that observational tactics were the most effective in the marketing research. While the study conducted surveys and structured questionnaire groups, the study also used marketing research observation to watch consumers in their natural state interact with restaurants during lunchtime. Through observational marketing research study, it was found that it would be best for restaurants located on a central street location, near transport links, and near transport links to gain consumer traffic. The study compared other marketing research results to observation marketing research results and found what consumers were saying differed from what consumers were doing (Boote, 1999).
Lego also discovered the importance of using the right research tactics. In the early 2000s, Lego shifted product design to larger pieces to be completed more quickly for the instant-gratification age group based off big data findings. However, this decision caused sales to decrease more and led to financial trouble for Lego. Through a branding consultant and qualitative marketing research study, Lego found that their target market identified with large projects sets and small Lego pieces as a uniting challenge, like a trophy. The qualitative research led Lego to create smaller components and more challenging sets. This led to success for the company (Murphy, 2021).
As shown through both examples above, marketing research provides data and support to better understand a consumer; however, the research itself is not the solution to problems. Rather, what matters is how to identify the right research and how to respond to research findings. Marketing research acts as a “functional link between marketing management and an organization’s customer base” (Javalgi, 2006, p. 13). Marketing research served as the functional link through Lego used problem-solving research to help with the company’s decrease in sales. Through focus group research, the marketing team was able to adapt products based off findings. Originally, big data research led Lego to make the decisions that damaged the company. Therefore, marketing research plays a strategic and helpful role in understanding the consumers and providing a systematic process. Yet, knowing the consumer and knowing how to utilize the right marketing research is the key to success. This was also evident in the restaurant case study through observational marketing research as compared to questionnaire results. Overall, marketing research is an organized process role that allows for companies to better understand and respond to its consumers marketing decisions.
References:
Boote, J., & Mathews, A. (1999). “Saying is One Thing; Doing is Another”: The role of
observation in marketing research. Qualitative Market Research Journal, 2(1), 15-21.
https://doi.org/10.1108/13522759910251909Links to an external site.
Javalgi, R. (. G., Martin, C. L., & Young, R. B. (2006). Marketing research, market orientation
and customer relationship management: A framework and implications for service
providers. The Journal of Services Marketing, 20(1), 12-23.
https://doi.org/10.1108/08876040610646545Links to an external site.
Malhotra, Naresh. (2019). Marketing Research: An Applied Orientation, Seventh Edition.
Pearson Education, Inc.
Murphy, Kate. (2021). “Why Companies Shouldn’t Give Up on Focus Groups” Wall Street
Journal. https://www.wsj.com/articles/focus-groups-big-data-companies-11621604085?st=b61kp5o1ysbe10b&reflink=desktopwebshare_permalink
