There are many reasons that market research is important. If you have not read it yet, then I suggest reading my article on the importance of marketing research. That article describes 12 different questions asked commonly by the marketing department, which are answered by market research.
The objective of market research is completely different and it is used for one thing only
“GAINING CONSUMER INSIGHT”
Whatever marketing decisions are made by the firm, they need insight in the current market to get an idea. Without this consumer insight, if the firm moves forward, it will either fail in its endeavor or incur heavy losses. Here are some key areas determine the objective of market research.
- When developing a new product, the objective of market research is to find out what are consumers missing.
- To improve brand equity and brand recall of a firm, the firm needs consumer insight to determine the positioning of all different brands in the consumer mind.
- To increase sales the objective of market research will be to look into various territories,their buying patterns,packaging and other such attributes to bring better results.
Banking and insurance are two examples where continues market research is used to gain consumer insight. As the customer preference changes in the family life cycle his buying pattern changes, an insight which is necessary for the banking and financial world.
Similarly, physical products like automobiles or mobiles too requires consumer insight. Here the objective of market research is to determine gap analysis and products which can warrant demand in the market and improve overall turnover.