Need Of Marketing Research
The following factors suggest increasing need of MR:
1. Growth and complexity of markets: Markets are no more local in character. They are now national and even global in character. The marketing activity is becoming increasingly complex and broader in scope as more firms operate in domestic and global markets Manufacturers find it difficult to establish close contact with all mark and consumers directly. Similarly, they have no control on the marketing system once the goods are sold out to middlemen. The marketing procedures are now, complicated. The market competition is also severe
This situation creates new problems before the manufacturers, which can be faced effectively through MR as it acts as a feedback mechanism to ascertain first hand information, reactions, etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.
2. Wide gap between producers and consumers: Market research is needed as there is a wide gap between producers and consumers in the present marketing system. Due to mass sc production and distribution, direct (personal) contact between product and consumers is practically lost. This creates information gap between producers and consumers. The middlemen dominate the market] scene. Producers do not get dependable information as regards nee expectations and reactions of consumers. They are unable to adjust the products, packaging, prices, etc. as per the needs and requirements consumers.
The problems created due to information gap can be solved q] through MR as it is possible to establish contact with consumers a collect first hand information about their needs, expectations, likes & dislikes, preferences and special features of their behavior. Thus marketing research enables a manufacturer to make his marketing policies pro-consumers. Effective communication with consumers is a possible through MR activities. Thus, MR is needed for removing wide communication gap between producers and consumers.
3. Changes in the composition of population and consumption pattern: In India, many changes are taking place in composition of population. There is a shift of population from rural urban areas. There have been considerable changes in the consumption and expenditure patterns of consumers in India. The incomes of people, in general, are rising. This brings corresponding increase in the purchasing capacity and buying needs and habits. The rising prices affecting the lower and middle class consumers and their purchasing power and purchasing priorities. Similarly, there are considerable changes in the purchasing pattern of clothing and other consumer items. The demand for consumer durables is fast increasing. The markets now flooded with consumer durables like TV sets and so on.
Manufacturers are expected to know such qualitative & quantitative changes in the consumer preferences and their consumption pattern. For achieving this objective, MR activities are necessary and useful. It is possible to adjust production and marketing operations as per the information supplied from consumer surveys and market surveys conducted under various MR projects. In brief, MR is needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning, policies and strategies.
4. Growing importance of consumers in marketing: Consumers occupy key position in modern marketing system. They are now well informed about market trends, goods available, consumer rights and protection available to them through consumer protection acts. The growth of consumerism has created new challenges before manufacturers and traders. Even growing customer expectations create situation when manufacturers have to understand such expectations and adjust the production and marketing policies accordingly. Indifference towards consumer expectations may lead to loss of business. In the present marketing system, consumers cannot be taken for granted. Their expectations need special consideration in all marketing activities. Production needs to be adjusted as per the expectations of consumers.
Marketing research particularly consumer research gives valuable data relating to consumers. It is possible to use such data fruitfully while framing marketing policies. Thus, marketing decisions can be made pro-consumer through marketing research activities
5. Shift of competition from price to non-price factors: Cutthroat competition is unavoidable in the present marketing field. Such competition may be due to various factors such as price, quality, packaging, advertising and sales promotion techniques. Entry of new competitors creates new problems in the marketing of goods and services. In addition, market competition is no more restricted to price factor alone. There are other non-price factors such as packaging, branding, after-sale service and advertising which create severe market competition. Every producer has to find out the extent of such non-price competition and the manner in which he can face it with confidence.
MR is needed as it offers guidance in this regard. A manufacturer can face market competition even by using certain non-price factors. The shifting of competition from price to non-price factors has made marketing of consumer goods more complicated and challenging. This challenge can be faced with confidence by using certain measures suggested through marketing research.
6. Need of prompt decision-making: In competitive marketing, marketing executives have to take quick and correct decisions. Companies have to develop and market new products more quickly than ever before. However, such decisions are always difficult. Moreover, wrong decisions may bring loss to the organization. For correct decision-making, marketing executives need reliable data and up-to-date market information. Here, MR comes to the rescue of marketing managers. Problems in marketing are located, defined analyzed and solved through MR technique. This suggests its need as tool for decision-making. MR is needed as a tool for reasonably accurate decision-making in the present highly competitive marketing system.
7. Problems in the distribution system: Modern distribution system is complex and costly. How to market goods efficiently and economically is a basic issue in the present marketing system. Modern production is now possible because of the use of advanced technology. However efficient distribution is rather difficult. For this, it is necessary to identify new markets, new consumers, new channels of distribute and new sales promotion techniques. For such identification, MR needed.
The cost of marketing is fast increasing in modern marketing. The burden of rising marketing cost is normally passed on to consumers. This creates adverse effects on marketing activities. In brief, obstacles large scale distribution and rising distribution costs are two problems in the present marketing system. These problems can be studied & solved through MR activities relating to products, distribution channel consumers and so on. This suggests the growing need of MR.
8. Recent developments in science and technology: Science and technology are making rapid progress. In fact, the impact of such progress touches all aspects of commercial and industrial activities. Me products are manufactured and brought in the market. Articles with good demand become old and out-dated within a short period Consumers prefer new/novel articles in place of old ones. Produce and distributors find it difficult to take decisions due to lack knowledge about future market trends. Here, marketing research useful as it provides information about future trends in the markets field and enables marketing managers to take quick and corn marketing decisions. This suggests the need of marketing research.
9. Existence of large size enterprises: Modern manufacturing enterprises are large in size. Such enterprises can work as viable units and make progress only when their products are made popular with the consumers. Large-scale enterprises need distribution of their products on a massive scale. Here, MR is useful. It helps the enterprises explore, identify and locate new consumer markets. It suggests the ways and means for large-scale distribution of goods at the national/global level. In brief, MR is needed as an essential element of large scale manufacturing and marketing.
The factors noted above clearly suggest the growing need of MR in | the present consumer-oriented marketing system. It is needed in order to reduce the risks and uncertainties in the marketing activity. It supports 1 marketing managers while dealing with the marketing problems. Marketing research is needed as it acts as a key factor in successful marketing of goods and services.
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