Consumer research Plays Substantial Part In Formulating Marketing Strategy

“Business has only two functions - marketing and innovation."

- Milan Kundera, Czech novelist , playwright and poet.



The most innovative product in the market won't bring a business profits unless anybody buys it. And the only way to get people to buy the product is to market it properly. At the same time, if the product in question meets the needs of the market, the product is sure to be a bestseller. So, how do you know what the market wants, and, more importantly, whether your business is meeting those needs?



The answer is: Marketing Research. It is defined as "the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior."



The term marketing mix was first used in 1953 by Neil Borden, and developed further in 1960 by Jerome McCarthy who aimed the famous 4 P classification - Product, Price, Place and Promotion. Currently, an extended version of the Marketing Mix is gaining currency, including the use of three more Ps - People, Process and Physical Evidence.



Depending on research methodology, marketing research can be segregated into qualitative and quantitative marketing research.



Depending on market, marketing research can be separated into consumer research and business-to-business research.



Consumer research can be distinguished as " a form of applied sociology that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns."



To be effective, consumer research must be:



1. Systematic

2. Objective

3. Able to identify, collect, analyze and disseminate information



Consumer research plays an substantial part in formulating marketing strategy, its role best described by the DECIDE model:



D - Define the marketing confusion

E - Enumerate the controllable and uncontrollable judgment factors

C - Collect relevant facts

I - Identify the best possibility

D - Develop and implement a marketing strategy

E - Evaluate the decision and the decision procedure



By breaking down the decision-making process in six chronological steps, the DECIDE model allows for best use of consumer research in developing an adequate and efficient marketing strategy.



In simpler terms, consumer research can serve a company advance its marketing strategy by understanding issues such as:



* How consumers think, feel, reason, and select between several alternatives (e.g., products, services, etc)

* How the consumer is influenced by his or her environment (e.g., culture, family, media)

* How consumers behave while shopping or making other marketing decisions

* How marketing decisions are influenced by limitations in consumer awareness or information processing abilities

* How various products with various levels of precedency affect consumer willingness and decision strategies

* How marketers can adapt and advance their marketing campaigns and marketing strategies to more functionally reach the consumer



Diligent consumer research should be the first input when devising a marketing strategy, and the last input when determining its effectiveness. Therefore, to make a marketing strategy a success, consumer research is a significant tool.



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