It is the process of collecting and analyzing data about the market, potential customers, competitors, and the general environment in which the business operates. It aims to provide a deep understanding of the market conditions that affect the success or failure of goods and services.
Characteristics of Market Research Marketing:
1. Scientific methodology: Relies on scientific research methods to ensure the accuracy of the results.
2. Market orientation: Focuses on meeting customer needs and desires.
3. Forecasting: Helps predict future market trends.
4. Continuity: An ongoing process of tracking changes in the market.
5. Comprehensiveness: Covers multiple aspects of the market, including economic, social, and technological factors.
Benefits of Market Research Marketing:
1. Improve decision making: Provides accurate data that helps in making informed decisions.
2. Identify market opportunities: Contributes to discovering new opportunities for growth and expansion.
3. Understanding customers: Helps in identifying customer needs and expectations.
4. Reducing risks: Reduces the risk of failure in products or marketing campaigns.
5. Improving marketing strategies: Enables the design of more effective strategies.
Advantages of Market Research Marketing:
1. Accuracy: Provides reliable data that reflects market reality.
2. Customization: Research can be tailored to suit specific business needs.
3. Informed expectations: Enhances the ability to predict changes in the market.
4. Competitiveness: Helps businesses stay ahead of the competition.
5. Cost-effectiveness: When done correctly, research can be economical compared to the risks it may avoid.
Disadvantages of Market Research Marketing:
1. Cost: Research can be expensive, especially for small businesses.
2. Time: It takes time to collect and analyze data.
3. Bias: Results can be affected by biases in data collection or analysis.
4. Rapid changes in the market: Data can quickly become inaccurate due to changes in the market.
5. Complexity: Data can be difficult to interpret correctly.
Examples of Market Research:
- Arab Market Research: A study conducted by a Gulf technology company to understand the needs of the local market for smartphone applications, which contributed to the launch of a new application that meets the specific needs of young people in the region.
- Foreign Market Research: Amazon has conducted extensive market research to understand the needs of customers in the Indian market, which has led to customizing its services and products to suit the needs and expectations of this huge and diverse market.
Market research marketing is a vital tool for companies to understand the market, customers, and competitors. It can provide a strong competitive advantage by enabling companies to make informed decisions and avoid risks. However, companies must be prepared to incur the costs and invest the time and resources required to ensure the effectiveness of this research.
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