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Marketing is the process by which companies create value for their customers and build strong customer relationships in order to capture value in return. Marketing is about much more than advertising or branding, although they are important components of marketing strategies. It's also more than just finding new customers; retaining existing customers is equally valuable. Marketing touches every aspect of a business from product development to customer service, sales to public relations.
Marketing research is the systematic gathering, recording, analyzing, and interpreting of data about markets, products, consumers, and organizations for the primary purposes of identifying and predicting consumer behavior in the marketplace. The purpose of marketing research is to assist marketing managers to achieve marketing goals.
Marketing research identifies, anticipates, and plans for the future. It provides managers with the facts they need to make decisions that will help them achieve their goals. How do these facts help managers achieve their goals? The facts provide data on which to base conclusions, forecasts, strategies, and decisions. This information allows managers to evaluate opportunities for profitable expansion, assess the need to take action on, or avoid market entry into, a promising new product category. Marketing research defines problems and opportunities that are often not apparent from other data. It provides employees with the information that is needed to have successful careers in marketing.
There are two main functions of marketing research:
Market research involves all aspects of identifying, predicting, and explaining past, present, and future markets or market behavior. In contrast, marketing research involves the application of market research to solve specific problems within a company. Marketing researchers seek answers to such questions as: Should we enter this new market? How large is this market and how fast will it grow in the future? How much should we charge for our product in the new market? What would be a good name for this new product?
Marketing research can provide answers to such questions as: Which brand of soap should I buy? When should I introduce my new product? How can I reduce my advertising budget without reducing sales volume? What are the differences between consumers who buy my brand and those who buy competing brands? Who are the best prospects for our new customer incentive program?
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