Marketing Research – A Key to Success by understanding consumer behavior

Success of any organization relies on sound marketing decisions made by the management team (Sontakki, C. N., 2010). In order to create a strong marketing campaign, an organisation needs to understand the response of their target market and use it to create an effective marketing strategy.  While creating a solid marketing strategy, every single marketing decision should be established by facts and marketing research is aimed at gathering the facts (Iacobucci, D., 2013) (Wiid, J. and Diggines, C., 2010) .

marketing-research

In order to carry out a successful marketing campaign for any product, it is very critical to understand consumer behavior. All products can never appeal to all consumers. So it is essential to understand the values and priorities of a specific group of consumers.  Focus group studies, surveys and understanding of psychology of perticular consumer group plays a vital role for an organization to fulfill the expectations of their most valued consumers.

Focus group studies are most frequently used qualitative exploratory technique that offers consumers’ reaction on a new product or ad campaign at developing stage (Iacobucci, 2013). Focus group usually consists of a small group of people who discuss about the product in a room equiped with one way mirror to observe the discussion.  Its is very important for any company to choose their focus group according to their product. For example, a company producing choclate should focus on adults in the age group between 18 to 44 rather than on children because adults in age between 18 to 44 are the largest chocolate consuming group according to a survey carried out by statstica, a surveying company, in 2012 in U. S.

Surveys are another usefull and very flexible quantitative marketing research tool to assess consumer satisfaction, intention for repurchasment and many more (Iacobucci, 2013 ). Target consumers can be asked questions which should be replied in “yes” or “no” format or may be asked to rate between 1 to 10 or 1 to 5. Now-a-days, many companies are using web survey method to reach to the maximum number of cunsumers in this digital world. In many cases, companies use incentives to boost up response rate for the survay. John Towler, a psychologist and senior partner of Creative organizational design, said “Incentives can increase survey response rates dramatically. Our experience has shown that offering a worthwhile incentive can entice upto 50% of the people who would not normally complete the survey, to finish it and send it in. This applies to both paper and pencil surveys and one that are presented on the internet.” Some studies have shown that customer satisfaction surveys and marketing research surveys have their responce rate between 10% to 30%. In contrast to this, typically, employee surveys have higher response rate in the range of 25% to 60%. Compared to long surveys, short surveys have better response rate.

In addition to focus group and surveys, understanding the psychology of target consumers’ group also help the company to yield consumers’ expectations to make marketing strategy more effective and accordingly.  Due to raised awareness about health in people, coca cola found decline in selling of coca cola products, from 2011 to 2013, which appeared to be having high calorie contents. To come over this problem coca cola launched a new product with low calories  and same taste in the market which boosted coca cola’s sell again. Before launching this new product, to understand how consumers are going to behave, it did some marketing researches with 2 focus groups consisting adults between age group 18 to 35 living in urban area.

Thus, a successful marketing research equip an organization with very vital information about consumer behavior like product and brand preferences, product awareness, their expectations from company and and help company to survive in this competitive market.

References

Iacobucci, D., 2013. MM4. Cengage Learning.

Pulse, P., 2011. Survey Response Rates.-Tips On How To Increase Your Survey Response Rates. Australian Developed Online Survey Software.  <http://www.peoplepulse.com/resources/useful-articles/survey-response-rates/

Sontakki, C.N., 2010. Marketing research. Himalaya Publishing House.

Wiid, J. and Diggines, C., 2010. Marketing research. Juta and Company Ltd.

 

 

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