 Marketing Research

Marketing research is the research that companies do to study consumers and other
companies. Marketing research seeks to understand the best ways to connect a consumer
and a product, with the hopes that the consumer will buy. This involved evaluating the
current marketing already being done for that product, or similar products that are created
by the same company, and determining how well the marketing campaigns are working.
This also involves studying the marketing techniques of other companies.

Marketers begin research with a problem or a question. They don't approach research
with the goal to learn more about a particular market. Instead, they want to know why a
particular market is doing well, or why it is falling and what can be done to change that.
They may also want to know why consumers are not buying some products, but gladly
purchasing similar products. Research is then done to answer the question, and that
answer can be turned into a marketing technique that may get better results.

Market research consists of testing the market to determine the acceptance of a particular
product or service, especially amongst different demographics. It is used to establish
which portion of the population will or does purchase a product, based on age, gender,
location, income level and many other variables. Market research allows companies to
learn more about past, current and potential customers, including their specific likes and
dislikes.

Based on market research data, businesses can develop a "target audience." A target
audience is a specific group of customers that has a distinct need or desire for a product
or service. Market research is used to determine how often the target audience will buy a
particular item, how much they are willing to pay for it, and their overall satisfaction with
it. By analyzing market research information, manufacturers and service providers learn
where to focus their resources most effectively.

For example, mature men and women are most likely to buy a hair product that covers
gray. Advertising for such a product would obviously target adults, perhaps those 30 and
older. It makes no sense to waste money and effort advertising it to teen girls. On the
same note, if a product should be popular amongst different demographics, but seems to
be selling to only one group, a company may hire a market research team to find out why.
Through the market research data collected, the company can learn how to make the
product more attractive to other audiences, or how to advertise it better.

 Importance of marketing research

The task of marketing research is to provide management with relevant, accurate,

reliable, valid, and current information. Competitive marketing environment and the
ever-increasing costs attributed to poor decision making require that marketing research
provide sound information. Sound decisions are not based on gut feeling, intuition, or
even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process of
identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and implementing
marketing programs, marketing performance, and control. These decisions are
complicated by interactions between the controllable marketing variables of product,
pricing, promotion, and distribution. Further complications are added by uncontrollable
environmental factors such as general economic conditions, technology, public policies
and laws, political environment, competition, and social and cultural changes. Another
factor in this mix is the complexity of consumers. Marketing research helps the marketing
manager link the marketing variables with the environment and the consumers. It helps
remove some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information,
consumers' response to marketing programs cannot be predicted reliably or accurately.
Ongoing marketing research programs provide information on controllable and non-
controllable factors and consumers; this information enhances the effectiveness of
decisions made by marketing managers.

Traditionally, marketing researchers were responsible for providing the relevant

information and marketing decisions were made by the managers. However, the roles are
changing and marketing researchers are becoming more involved in decision making,
whereas marketing managers are becoming more involved with research. The role of
marketing research in managerial decision making is explained further using the
framework of the "DECIDE" model:

D
Define the marketing problem
E
Enumerate the controllable and uncontrollable decision factors
C
Collect relevant information
I
Identify the best alternative
D
Develop and implement a marketing plan
E
Evaluate the decision and the decision process

The DECIDE model conceptualizes managerial decision making as a series of six steps.
The decision process begins by precisely defining the problem or opportunity, along with
the objectives and constraints. Next, the possible decision factors that make up the
alternative courses of action (controllable factors) and uncertainties (uncontrollable
factors) are enumerated. Then, relevant information on the alternatives and possible
outcomes is collected. The next step is to select the best alternative based on chosen
criteria or measures of success. Then a detailed plan to implement the alternative selected
is developed and put into effect. Last, the outcome of the decision and the decision
process itself are evaluated.

To Make Marketing Decisions: Marketing research helps the marketers to make a

decision about the product or service. Sometimes a marketer might believe that the new
product or service is useful for the customers. However, research may show that
customers do not need a product or are meeting their needs with a certain competitor
product and so on. Similarly good marketing research strives to provide options for the
successful introduction of new products and services.
Survive the Competition: Marketing research helps in ascertaining and understanding
competitor information such as their identity, marketing network, customer focus and
scale of operations. This helps in surviving and in certain cases, even leaving behind the
competition. Moreover, with market research you can also help understand the under-
served consumer segments and consumer needs that have not been met.

Helps to Decide Target Markets: Research helps provide customer information in terms
of their location, age, buying behavior and gender. This helps the marketers zero in on the
target markets and customers for their products and services.

Maximize Profits: Apart from profit maximizing steps such as item optimization,
customer profitability analysis, and price elasticity, marketing research allows you to find
out methods that can help you maximize profits. For example, a product's price elasticity
research can help you ascertain the impact of an increased price on the sales and the
profits of a product. This emphasis on profitability also helps the company's focus to shift
from maximizing sales to increasing the profits of a company. .

Increasing the Sales: Increasing the sales of your products or services helps a company
in maximizing its profits. By understanding the customer's needs, wants and attitude
towards the products and determining whether your products fit the bill, marketers can
increase their sales. This helps in not only increasing the sales to the target customers and
people already using the product but also converting the non users into customers for the
product.

 Royal Bhutan’s market research strategy for Bangladesh

Over the years, fruit juices have had many guises from being the "must have" starter of
the 1970s to a sludgy concentrate served with full English. Now latest research from
MINTEL shows a new era for fruit juices, as Britain's increasing demand for high
quality, natural and healthy produce revolutionizes the market.

Indeed, over the past two years alone (2002 - 2004) sales of chilled, high quality and
natural juice have boomed, increasing by a staggering 60% to some £768 million.
The overall market for fruit juice and juice drinks has also grown substantially in recent
years. Market value increased by an impressive 37% between 1999 and 2004 to reach
£2.32 billion, while volume has increased by 26% over the same period to around 2.2
billion liters. In 2004, fruit juice accounted for the majority of the market both in terms of
volume (54%) and value (60%). MINTEL predicts that this market will continue to grow
over the next few years, to be worth almost £3 billion by 2009.

"Trends towards healthier eating as well as an increasing interest in more natural, organic
products are key reasons for the phenomenal growth we have seen in this market. What is
more, British consumers are now demanding more top quality, premium products and
produce with added vitamins, minerals, and functional ingredients such as soy or omega-
3. Healthy living is a growing trend and people just can't get enough of these kinds of
products,"

So according to the home country success and growing trend of fruit made product’s
industry in the whole world in our country Royal Bhutan company will do good.

Because in Bangladesh The off-trade (supermarkets etc.) still dominates sales of fruit
juice and juice drinks, with 80% of the market, but the on-trade (pubs and restaurants)
has experienced the stronger growth, having grown by over 30% between 2002 and 2004.
The on-trade has benefited from increasing health concerns among consumers in
particular binge drinking. There is also a greater awareness of the dangers of drink-
driving (and of the stringent penalties for doing so), which have both contributed to the
occasional drinking of fruit juices or juice drinks in preference to an alcoholic beverage.
Juices are also often drunk as a mixer in alcoholic drinks.

The increasing popularity in drinking juice while out and about could be key for further
developments in this market. Indeed the imminent arrival of an antipodean juice bar
culture would also appear to be a distinct possibility. Just as we have followed the
Americans in their obligatory morning trip to the coffee shop, its also build a fresh juice
bar drink into their daily routine.

If Royal Bhutan company is looking to conduct a market research project there are a
number of ways that you could go about it. Some research buyers choose to use full
service market research agencies whilst others commission their research with
consultancies or freelancers. Or there is of course the option of carrying out the research
yourself.

This section of the Market Research World is intended to give you some background
information about the various methods of conducting research, along with some points to
consider when planning your research project.

Market research information can be obtained from a variety of sources. Basically there
are two types of research: ‘Primary’ and ‘secondary’. The latter involves using
information that is already readily available, for example by utilizing your local library
you will have access to reference materials, magazines, directories of associations etc…
Also a local college library or business school, vocational or technical institute, chamber
of commerce, trade associations etc…will all have useful research data. The other side of
the coin is ‘Primary research’ – this is where you conduct your own bespoke piece of
market research.

If Royal Bhutan wants to conduct your own project, any of the following organizations
will be able to help. They pretty much make up the market research industry:

- Market Research Agencies

- Market Research Consultancies
- Freelancers or Consultants
- Fieldwork & Tabulation Companies
- Data Preparation & Analysis
- Viewing Facilities
- Market Research Recruitment Agencies
 They can conduct some research as like:

 Exploratory Research (huh?)

 Designed to generate basic knowledge, clarify relevant issues uncover
variables associated with a problem, uncover information needs, and/or
define alternatives for addressing research objectives.
 A very flexible, open-ended process.
 Descriptive Research (who, what, where, how)
 Designed to provide further insight into the research problem by
describing the variables of interest.
 Can be used for profiling, defining, segmentation, estimating, predicting,
and examining associative relationships.
 Causal Research (If-then)
 Designed to provide information on potential cause-and-effect
relationships.
 Most practical in marketing to talk about associations or impact of one
variable on another.
 Literature Search
 Conceptual literature
 Trade literature
 Published statistics
 Library homepage

 Analysis of Selected Cases

 Intensive study of related cases or past activities
 May be internal or external
 Can help provide clues as to how other units or companies have dealt with
similar issues

 Experience Surveys (a.k.a., depth interviews)

  Knowledgeable people with varying points of view
 Unstructured and informal interviews
 Respondent free to choose issues to be discussed
 Focus Groups
 8 to 10 people at one time
 Relatively homogeneous groups
 Multiple, heterogeneous groups
 Group dynamics
 Moderator is key
 Relies on general topical guide with plenty of time for interaction

For the Royal Bhutan company in Bangladesh marketing researchers make numerous
strategic and tactical decisions in the process of identifying and satisfying customer
needs. They make decisions about potential opportunities, target market selection, market
segmentation, planning and implementing marketing programs, marketing performance,
and control. These decisions are complicated by interactions between the controllable
marketing variables of product, pricing, promotion, and distribution. Further
complications are added by uncontrollable environmental factors such as general
economic conditions, technology, public policies and laws, political environment,
competition, and social and cultural changes. Another factor in this mix is the complexity
of consumers.