How important is Market Research? Step by step process involved in it.

Marketing research is the systematic collection, analysis, and interpretation of data pertaining to the marketing conditions. The basic reason for carrying out market research is to find out the change in the consumer due to the change in the elements of the marketing mix. The marketers need to know about the changing trends in the market like change in the customer’s tastes and preferences, the new products launched in the market, prices of the competitor product, the close substitutes of the product, etc.

How important is Market Research? Step by step process involved in it.

The marketing research process is a six-step process involving the definition of the problem being studied upon, determining what approach to take, formulation of research design, fieldwork entailed data preparation and analysis, and the generation of reports, how to present these reports, and overall, how the task can be accomplished.

Steps involved in the marketing research process

1. The first stage in a marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, relevant background information, and all necessary data, and how the information gathered will be used in decision-making. Problem definition involves discussion with the decision-makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly.
2. The development of an approach to the problem is the second step. This includes formulating an objective or theoretical framework, constructing analytical models, generating Research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research, and pragmatic considerations.
3. The third step involves the formulation of the research design which is the framework or blueprint for conducting the marketing research project. It details the procedures necessary in obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the
   information necessary for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also components of the research design. The issue of how the data should be obtained from the respondents must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study.
4. Fourth is data collection which involves manpower/staff members who operate either in the field, as in the case of personal interviewing, from an office by telephone (telephone or computer-assisted telephone interviewing), or through the mail (traditional mail and mail panel surveys with pre-recruited households). Proper selection, training, supervision, and evaluation of staff members help minimize data-collection errors.
5. Data preparation and analysis is the fifth step and includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each
   question in the questionnaire. The data from the questionnaires are transcribed or key-punched onto magnetic tapes, or disks or inputted directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed. Analyzed data gives meaning to the information that has been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously.
6. The last stage is the report preparation and presentation. The entire project should be documented in a written report and the results and major findings must be presented. The findings must be in a comprehensible format so that they can be readily used in the decision-making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact.

And Finally

For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.