Marketing Research Process and Industry Essay- MKT 445 PDF

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This assignment is to explain the marketing research process and industry. Includes: benefits and drawbacks of utilizing research firms, codes and restrictions in place to promote ethics, advancement of technology that impacts marketing research, and steps that can be taken to mitigate risk. ...

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Marketing Research Process and Industry Paper

Samantha E. Isherwood Colangelo College of Business, Grand Canyon University MKT 445: Marketing Research and Reporting David Morse January 24th, 2021

2 Marketing Research Process and Industry Paper Marketing research provides data that is relevant to help solve marketing challenges that businesses may face—and is an integral part of the business planning process (Entrepreneur, n.d.). Marketing research is used by almost all companies around the globe, and can be done internally within the company, or done externally through a marketing research firm. There is a concern of validity when it comes to marketing research. In order to assess this concern, there will be a discussion of the benefits and drawback of utilizing market research firms, restrictions, and codes to promote ethics within the industry, advancement of technology that has impacted research and reporting practices, and lastly, steps that a marketing manager can take to mitigate risk that increases quality and reliability of information they receive. Benefits and Drawbacks Research allows companies to understand everything there is to know about their market and consumers (Magusara, 2019). When it comes to market research, there are advantages and disadvantages when it comes to conducting the research. The first benefit of market research is that it mitigates risk for the business (Magusara, 2019). While risk will always be involved in business, market research provides insight on which decisions are better than others, for instance, it can give an inkling on whether or not a project will be successful or not (Magusara, 2019). The second benefits are improvement of sales. Market research assists in developing products and services, and tells the company the customers’ needs and wants which is of high importance (Magusara, 2019). The first drawback of market research is the cost of the research. While companies can use current employees to conduct the research, the cost will be in the questionnaires, interviews, focus groups, and canvassing (Magusara, 2019). Hiring a marketing firms takes capital, resources, and time (Magusara, 2019). The second disadvantage of market

3 research is the time that needs to be devoted in order to produce thorough research (Magusara, 2019). The last disadvantage, though there are many more, is that marketing research can only target a small population. The lack of respondents is a challenge that almost all market researchers face in their career (Magusara, 2019). Getting the target audience to take the time to fill out surveys and questionnaires is out of the hands of the researcher, which leads to the small population that market researchers interact with a gain insight from (Magusara, 2019). Promotion of Ethics There are codes and restrictions for market research that promotes ethics within the industry. According to the insights Association, the code is based on four principles: respect the data subjects and their rights, transparency about the collection of personally identifiable information, act with high standards of integrity, professionalism and transparency in all relationships, and practices, and lastly, compliance with all applicable laws and regulations (2018). In my opinion, I believe that these codes and restrictions are sufficient for promoting ethics within the industry. For instance, the second code that relates to transparency, notice, and choice, puts emphasis in making sure identification and credentials of market researchers is easily accessible to participants, and stresses the importance of consent and the right to data access to any participants (insights Association, 2018). Insights also takes special interest in protecting the rights of children and vulnerable individuals (insights Association, 2018). This includes obtaining verifiable consent from legal guardians of children and vulnerable individuals, questions must be asked in accordance with their level of maturity and age, lastly, individuals that are involved in research care capable of making informed decisions and are not unduly pressured to cooperate in the research conducted (insights Association, 2018). The enforcement of the code is the responsibility of the Insights Association Standards Committee and lead any

4 and all investigations of code violations (insights Association, 2018). The consequences range of issuance of private written warning to public expulsion from the Insights Association (insights Association, 2018). If a law has been broken, Insights Association works directly with law enforcement to conduct a thorough investigation (insight Association, 2018). Advancement of Technology The advancement of technology has had great impact on market research and reporting practices. The first way that technology has impacted market research is social media is now a component for information gathering (Mouhanna, 2018). Users of social media platforms fill in their personal information, follow other users and companies, and upload their own content and thoughts that are available for everyone to see (Mouhanna, 2018). This information can be used to see what interests specific age groups, regions, and is helpful for marketers to understand their target demographic and their market segment (Mouhanna, 2018). The second way that the advancement of technology has impacted market research and reporting is the automation of data analysis. There are programs such as Tableau, Microsoft Excel, Survey Monkey, and Google Analytics have made it easier for companies to collect, analyze, and synthesize large quantities of data without the help of third parties, such as marketing firms (Mouhanna, 2018). The last way that technological advancement has helped market research and reporting is that information is more discoverable than what it was 20 years ago (Mouhanna, 2018). Two decades ago, in order to get a copy of a company’s annual report, phone calls were necessary in order to get a hard copy of the report (Mouhanna, 2018). Nowadays the reports are published online on the company’s website that is free of charge, and accessible for any marketer or interested consumer (Mouhanna, 2018).

5 Steps to Mitigate Risk There are steps that can be taken during market research projects that can mitigate risk while increasing quality and reliability of the information that they receive during their research. The first step is conducting secondary research from existing sources that can provide general and quantifiable information (U.S. Small Business Administration, n.d.). The information gathered is industry trends, demographics, and household incomes, and this can be found from the U.S. Census, Statistical Abstract of the United States, Consumer Credit Data, Bureau of Labor Statistics, and Earnings by Occupation and Education (U.S. Small Business Administration, n.d.). The second step is to use competitive analysis to find a market advantage. The analysis helps to define a competitive edge that can create and sustain stable revenue despite industry competitors (U.S. Small Business Administration, n.d.). The analysis includes an assessment of the following characteristics: market share, strengths and weaknesses, window of opportunity to enter market, importance of target markets, barriers that restrict entry into the market, and lastly, indirect, and secondary competitors who may impact success (U.S. Small Business Administration, n.d.). There are several industries that are competing to serve the same market that a company may be targeting, that is why it is of high importance to differentiate the competitive analysis by industry (U.S. Small Business Administration, n.d.). The last step is gathering data that differentiates the data gathered into operational (O-data) and experience (Xdata), once the data is combined, a complete picture of failure and success will be made available (Smith, 2020). O-data is a business’s solid numbers, such as costs, accounting, and sales information (Smith, 2020). O-data tells a marketer what has happened, but not why (Smith, 2020). X-data gives insight into the thought and emotions of customers, employees, and brand advocates (Smith, 2020). These three steps help mitigate risk because of the extensive research

6 practices that fully explain and show information that is vital to the company. By using secondary research, an organization and their marketers are able to see the market and their competitors, with the barriers and opportunities of the market in full view to market researchers. Using competitive analysis to find a market advantage is step that should not be dismissed by researchers, or management in an organization. Without competitive advantage, there is no reason for a consumer to be interested in the good or services provided by the organization. Lastly, by gathering O-data and X-data, it paints a full picture of information that is not just external information and factors, but rather, includes internal information that is necessary to the day-to-day processes that a company’s experiences during their tenure in conducting business.

7 References Entrepreneur. (n.d.) Market Research. https://www.entrepreneur.com/encyclopedia/marketresearch Insights Association. (2018, February). Code of Standards and Ethics for Marketing Research and Data Analytics. https://www.insightsassociation.org/sites/default/files/misc_files/insights_association_co de_of_standards.pdf Magusara, M. (2019, April 17). Advantages and Disadvantages of Doing Market Research Before Starting a Business. Business 2 Community. https://www.business2community.com/strategy/advantages-and-disadvantages-of-doingmarket-research-before-starting-a-business-02192153 Mouhanna, A. (2018, February 21). 5 Ways Technology Has Impacted Market Research. Freedonia. https://www.freedoniagroup.com/Content/Blog/2018/02/21/5-WaysTechnology-Has-Impacted-Market-Research Smith, S. (2020, December 7). 9 Key stages in your marketing research process. Qualtrics. https://www.qualtrics.com/blog/marketing-research-process/ U.S. Small Business Administration. (n.d.). Market research and competitive analysis. https://www.sba.gov/business-guide/plan-your-business/market-research-competitiveanalysis...