Professional bodies provide a starting point to understand how market research works. The American Marketing Association (www.ama.org) state that “Market research refers to the gathering of consumer data and insights, such as their preferences and needs”.  They outline that once collated this resource is important and critical to marketers, as they have the foundations – i.e the audience and consumer information needed to devise marketing campaigns that are more likely to succeed. 

ESOMAR (standards.esomar.org)  sets out that market research is “….about listening and understanding people’s views, and interpreting this information to guide brands, organisations or governments when making decisions”.  This provides additional guidance as to who market research is for, as well as simplifying the definition.  

It has been asserted that marketing research “… provides support to marketing decision makers by helping to describe the nature and scope of customer groups, understand the nature of forces that shape the needs of customer groups and the marketer’s ability to satisfy those groups, test individual and interactive controllable marketing variables and monitor and reflect upon past successes and failures in marketing decisions.”  (Malhotra et al, 2017, p25)¹. They note that the approach by researchers is both systematic and objective and that the ultimate aim is to improve market decision making.  

Insights that assist people globally with their understanding and interpretation in an increasingly complex and interconnected world, is an outcome cited by ESOMAR (www.standards.esomar.org) 

Marketing research and analytics provide marketers with detailed insights and context.  As the Chartered Institute of Marketing (CIM) in the UK notes, in order to plan a marketing strategy it “…starts with a detailed and ongoing investigation of the market and its sub-markets or segments. Companies look at the social, logical, economic, cultural and technological trends which are shaping the market, their own position within it and the resources than can marshal to change or influence it.”

The US Small Business Administration www.sba.gov note that “Market research helps you find customer for your business.  Competitive analysis helps you make your business unique.  Combine them to find a competitive advantage for your small business” 

Additionally, Malhotra et al. (2017)¹ highlight that marketing research does not make decisions, linking to the points made above.  

The outcomes from analytics are a more detailed and insightful understanding of the market, customers and potential customers.  From this marketers and their associated decision makers are in a stronger position to devise an informed marketing strategy and plan. 

References

1. Malhotra, N.K., D.Nunan and D.F. Birk (2017) Marketing research: an applied approach. 5th edition. Harlow, England: Pearson Education Limited