Marketing Research in Practice
Module 1: Marketing Research vs. Market Research
The lack of market research and the data it produces leaves companies adrift without a clear path for developing a marketing strategy to accomplish their goals. Whether striving to enhance customer loyalty, fine-tune performance, or navigate pricing decisions, data in marketing is an invaluable asset (Smith, 2020). The fusion of data and research is revolutionizing marketing and sales, becoming an imperative for businesses in today’s landscape (Johnson & Brown, 2019).
In marketing, conducting research involves gathering, analyzing, and using vast quantities of digital information to enhance business operations (Roberts et al., 2018). Marketing research encompasses various aspects that Marketers use to determine strategy, one of which is to understand their target audiences comprehensively. The "know your customer" (KYC) principle, which was originally introduced to combat bank fraud, has evolved with the accessibility of big data. Now, even small and medium-sized enterprises can benefit from KYC insights facilitated by cloud computing and big data technologies (Adams, 2021).
Prioritizing customer engagement is a pivotal aspect of marketing endeavours. Through data analytics and research, businesses gain the intelligence necessary to drive positive changes, such as refining existing products or maximizing revenue per customer (Taylor & Clark, 2017). Elevating brand awareness through strategic data-driven approaches is also facilitated by marketing research (Garcia & Martinez, 2019).
Marketing research empowers marketers to harness real-time data within cloud computing environments (Williams, 2020). Given the ubiquitous nature of data in contemporary business operations, marketing research is indispensable for interpreting and deriving insights from this wealth of information (Jones, 2018).
What’s the Difference between Market Research and Marketing Research?
“Market research” and “marketing research” are frequently used interchangeably, yet their meanings are nuanced and can vary depending on context and interpretation. Generally, both types of research entail collecting information and insights regarding markets, customers, and other factors influencing business decisions. However, subtle distinctions exist between the two.
Market research primarily centres on examining the market itself, encompassing an understanding of the external market landscape, including market size, segmentation, trends, and competitive dynamics. Market research often encompasses broader industry or market-level data and trends, involving the analysis of economic factors, industry reports, and competitor data. It aims to furnish a high-level overview of the market to pinpoint opportunities and threats without necessarily delving deeply into specific marketing strategies or tactics.
Systematically gathering, analyzing, and interpreting data and information about a market, including its consumers, competitors, and external factors, constitutes market research. Marketers employ various methods and techniques to conduct market research to gather insights about their target markets, consumers, competitors, and industry trends. Subsequently, marketers often utilize visualization tools to aid in storytelling based on the collected information.
Market research is like putting on a detective hat for your business. It’s all about digging into the big picture of a market to understand who your potential customers are, what they want, what they’re willing to pay, and who your competitors might be. It’s like gathering clues to solve the mystery of how to succeed in the marketplace.
Marketing research encompasses a broader array of marketing-related activities. While it includes market research, it also extends to different facets of marketing, such as product development, pricing, advertising, distribution, and consumer behaviour. Marketing research is more comprehensive and can incorporate external market analysis (akin to market research) and internal marketing strategy and implementation aspects. Its primary goal is to bolster marketing decision-making across various marketing mix components, offering insights into devising and executing effective marketing strategies and campaigns.
Marketing research is like having a magnifying glass for your business strategy. It’s about zooming in on specific aspects, like figuring out the best ways to sell your product or service. It dives into details like the most effective ways to reach your audience, what messages will resonate with them, and how to stand out from the competition. It’s basically about fine-tuning your approach to make sure you’re hitting the mark with your marketing efforts.
Market research functions as a subset of marketing research, focusing on understanding the market environment. In contrast, marketing research encompasses a broader spectrum of activities related to the entire marketing process.
How Is Marketing Research Revolutionizing the Way We Market?
Marketing research is a critical tool for businesses and organizations, helping them in
- making informed decisions
- devising effective marketing strategies
- gaining a competitive edge in the market
Marketing research encompasses many applications, such as providing invaluable insights into target customers’ needs, preferences, and behaviours, which is crucial for shaping product development, pricing strategies, and market positioning.
Research enables companies to segment their target market into distinct groups based on demographics, psychographics, and behaviour, facilitating tailored marketing efforts for enhanced effectiveness. With marketing research, businesses identify market gaps and opportunities for new product development or enhancements, validating concepts and features before launch.
Marketing research isn’t just about crunching numbers and analyzing data; it’s about getting to know the heartbeat of your market—the people who will ultimately decide the fate of your business.
Imagine you’re the owner of a small boutique coffee shop, eager to understand what makes your customers tick. You start by delving into marketing research and diving deep into understanding your customers’ needs, preferences, and behaviours. Through surveys, interviews, and observation, you uncover valuable insights. For instance, you learn that your customers aren’t just looking for a caffeine fix; they crave a cozy atmosphere where they can unwind and connect with friends. Armed with this knowledge, you tailor your product offerings and pricing strategies to cater to these desires. You introduce specialty drinks and cozy seating areas, transforming your shop into a beloved community hub. But the market is always changing, and you need to stay ahead of the curve. That’s where marketing research comes in. You keep a close eye on your competitors, analyzing their products, pricing, and customer perceptions. You also conduct regular assessments of your pricing strategies, ensuring they remain competitive while still maximizing profitability.
When it comes to promoting your business, you don’t just throw spaghetti at the wall and hope it sticks. Instead, you use marketing research to craft targeted advertising campaigns that resonate with your audience. Whether it’s through social media, local events, or word-of-mouth marketing, you know exactly where to focus your efforts for maximum impact. And let’s not forget about your brand. You take pride in your coffee shop’s reputation and use marketing research to gauge how customers perceive your brand. By staying attuned to their feedback, you continuously refine your branding strategies to maintain a positive image in the eyes of your customers.
In the end, marketing research isn’t just a tool—it’s the compass that guides your business toward success in an ever-evolving market. Marketing research empowers organizations to gather and analyze information, enabling informed decision-making across various marketing endeavours. It facilitates adaptation to market dynamics, enhances customer satisfaction, and drives sustainable growth and success.
In the following video, Samantha Strigaro discusses the power of perception and how it affects market research.
Source: TEDx Talks. (2018, October 8). The influence of perception in market research| Samanta Strigaro | TEDxGoldeyBeacomCollege. [Video] YouTube.
After watching the TEDx Talk by Samanta Strigaro on “The Influence of Perception in Market Research,” reflect on how perception plays a crucial role in marketing and market research. In your reflection, consider the following points:
- How does consumer perception influence the outcomes of market research studies?
- What are some common biases that can affect the accuracy of marketing research data?
- How can marketers design research studies to minimize the impact of perception biases?
- Can you imagine a real-world example where perception significantly impacted a company’s market research findings or marketing strategy?
Core Market Research Analyses and Techniques
Marketing research and market research are like cousins in the business world – they’re related but have unique identities. Market research is all about understanding the big picture of a market. Imagine you’re trying to determine if there’s a demand for a new energy drink. Market research would help you understand your potential customers, what they want, what they’re willing to pay, and who your competitors might be. It’s like zooming out on a map to see the lay of the land before you start your journey.
Now, marketing research is more like zooming in on a specific aspect of your business strategy. Let’s stick with the energy drink example. Once you’ve done your market research and know there’s a demand, marketing research helps you figure out how to sell it effectively. It dives into the best channels to reach your audience, what messages will resonate with them, and how to position your product against competitors. It’s like getting down to the nitty-gritty details of your journey – like deciding which roads to take and where to put up signposts.
So, market research sets the stage by giving you the lay of the land, while marketing research helps you navigate that stage by figuring out the best route to success. They work together hand in hand to help businesses make informed decisions and ultimately thrive in the marketplace.
Now that we know we have started conducting a thorough market analysis, let’s discuss the tools and techniques of market research. Market research lets marketers gain insights into consumer behaviour, market trends, and competitive landscapes.
SWOT Analysis
A SWOT Analysis involves assessing a company or product’s strengths, weaknesses, opportunities, and threats. Marketers conduct a SWOT by looking at what a business is good at (strengths), where it could do better (weaknesses), spots where it could grow (opportunities), and what might trip it up (threats). For example, it might show that a company has a killer brand reputation (strength), but it’s struggling with pricing compared to competitors (weakness). On the bright side, there’s a chance to spread into new markets (opportunity). But, watch out for shifts in what customers want (threat).
Segmentation Analysis
Marketers divide the target market into smaller segments based on demographics, psychographics, or behaviour. For example, a cosmetics company might segment its market based on age groups, targeting different products to teenagers, young adults, and older consumers.
Conjoint Analysis
The Conjoint Analysis technique helps determine how consumers value different product or service attributes. For instance, a car manufacturer might use conjoint analysis to understand which features, such as fuel efficiency, design, or price, are most important to potential buyers.
Market Share Analysis
Marketers assess their company’s share of the total market compared to competitors. For example, a soft drink company might track its market share over time and compare it to rival brands to evaluate its competitive position.
Customer Satisfaction Surveys
Marketers collect feedback from customers to gauge their satisfaction with products or services. For instance, a hotel chain might send out surveys to guests after their stays to assess satisfaction with accommodations, amenities, and service quality.
Self-Check
Critical Thinking
- How do individual perceptions influence the data collected in market research? Can you think of an example where perception might lead to a significant difference in research outcomes?
- Among the various market research techniques discussed (surveys, focus groups, interviews, observational research, social media analysis, experimental research, market segmentation analysis, and secondary data analysis), which do you believe is the most effective for understanding consumer behavior and why? How might a business decide which techniques to prioritize in their research strategy?
- How has the shift towards personalized marketing, driven by detailed consumer data, impacted consumer engagement and loyalty? Can you think of any examples where personalized marketing has significantly improved the customer experience or business outcomes?
References
Adams, J. (2021). The evolution of KYC principles in marketing research. Journal of Marketing Insights, 15(2), 85–92.
Churchill, G., & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, 19(4), 491–504.
Garcia, L., & Martinez, N. (2019). Strategic brand awareness: Leveraging data in marketing research. Marketing Dynamics, 8(3), 50–65.
Green, P., & Srinivasan, V. (1990). Conjoint analysis in marketing: New developments with implications for research and practice. Journal of Marketing, 54(4), 3–19.
Johnson, A., & Brown, E. (2019). The impact of data in modern marketing: A comprehensive analysis. Journal of Marketing Strategies, 12(1), 65–78.
Kotler, P., & Keller, K. (2016). Marketing management (15th ed.). Pearson.
Roberts, A., Johnson, B., & Davis, C. (2018). The role of marketing research in contemporary business operations. International Journal of Marketing Studies, 10(4), 98–110.
Porter, M. (2008). Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster.
Smith, T. (2020). Leveraging data for competitive advantage in marketing. Marketing Intelligence Review, 22(3), 40–50.
Taylor, R., & Clark, M. (2017). Customer engagement and revenue maximization: Insights from marketing research. Journal of Business Analytics, 5(2), 120–135.
Williams, D. (2020). The integration of real-time data in marketing research. Journal of Marketing Innovation, 18(4), 205–218.
Winer, R. (2004). Marketing management (3rd ed.). Prentice Hall.
"Know your customer" is a process through which businesses verify the identity of their clients or customers, typically before or during the start of a business relationship. The primary purpose of KYC is to prevent illegal activities such as money laundering, fraud, terrorist financing, and identity theft. KYC procedures involve gathering relevant information about customers, assessing their risk levels, and ensuring that they are not involved in any illicit activities. These procedures often include identity verification, address verification, and risk assessment based on factors such as the customer's financial transactions and background checks. KYC compliance is mandatory in many industries, particularly in finance, banking, and other sectors dealing with high-value transactions and sensitive information.
Big data refers to extremely large and complex datasets that cannot be effectively managed or analyzed using traditional data processing techniques. These datasets typically exhibit characteristics such as volume (being massive in size), velocity (being generated rapidly), and variety (containing diverse types of data). The term also encompasses the technologies and methodologies used to collect, store, process, and analyze such data to extract valuable insights and inform decision-making processes across various domains.
