Scope of Marketing Research/ Marketing Research Activities

Marketing research, though formally established in, 911, has shown tremendous development and progress. Earlier it was confined only to study of market (size, share, trends, segmentation etc.) but now it has become an important component of business world.

The scope of marketing research activities starts before the installation of an enterprise and continues till the organization operates. Marketing research has wide scope and covers all aspects of marketing. Broadly the scope of marketing research can be classified in the following categories:

  • Research on market

  • Research on product

  • Competition analysis

  • Research on sales methods & policies.

Research on Market: Market research involves the followings:

  • General business forecasting.

  • Studies of change in customer type importance.

  • Studies of trends in marketing for products.

  • Studies for estimating demand for new products.

  • Analysis of the size of the market for specific products.

  • Analysis of territorial sales opportunities or potential studies of economic factors effecting sales volume and opportunities.

  • Studies of shifts in the nature of markets,

  • Analysis of characteristics of the market for specific product.

  • Studies of relative profitability of different markets.

Research on Product: The research on product category involves gathering the following information:

  • Studies aimed at product elimination or line simplification.

  • Studies of the competitive position of company’s products.

  • Economic research- determination of industry trends (co-relation of company sales with economic indicator etc.)

  • Determining consumer or customer acceptance of proposed new products.

  • Comparing consumer or customer acceptance of existing products or services with acceptance of similar competitive products or services.

  • Packaging research, design or physical characteristics,

  • Determining present uses of existing products.

  • Evaluating new competitive products or their development or modification.

  • Market test and market operation on new or improved products.

  • Studies of dissatisfaction with existing products or services among present or former customers.

Competition Analysis: The third aspect of marketing research is the competitive analysis, which involves the following major issues:

  • Study of competitor’s strategies.

  • Studying the advertising methods and pricing strategies of the competitors,

  • Studying the number of competitors active in it, their market share, their price ruling in the market and so on.

  • Studying the nature, use and share of market of their products.

Research on Sales Methods & Policies: It includes the followings:

  • Selection of advertising media.

  • Studies of effectiveness of promotional devices like dealer’s premium.

  • Studies of distribution costs.

  • Appraisal of proposed changes in sales methods.

  • Measuring territorial variations in sales field, market shares and sales effectiveness.

  • Evaluation of existing sales methods.

  • Studies of prices and their influence on sales volume.

  • Measuring advertising effectiveness.

  • Analysis of salesman’s activities.

  • Measuring effectiveness of individual salesman.

In general, some applications of marketing research can be listed as:

  • Markets in terms of amusement viz. Distribution of consumers.

  • Nature and size of markets.

  • Product development, product line decisions, strength and weaknesses of the product.

  • Market potential analysis for existing products and to estimate demand for new products.

  • Study of market trends with respect to income, profession, education etc.

  • Sales forecasting

  • Comparative study of competitive products.

  • Evaluation of sales personnel performance.

  • Evaluation of present and proposed sales methods.

  • Fixing sales targets.

  • Handling and transport studies.

  • Dealer’s supply and storage requirements.

  • Demand elasticity.

  • Packaging and design research to study the impact and response of packing in the market.

  • Study of advertising effectiveness.

  • Selection of effectiveness and appropriate advertising media.

  • Fixing of sales territories.

  • Study of regional variations in sales.

  • Channels and methods of distribution.

  • Marginal analysis.

The scope of marketing research covers a wide range of activities which influence the development of markets. The influence of various buying factors is examined in particular buying situations. It involves systematic analysis for quantitative and qualitative assessment of the market demand for specific products and brands. The main divisions of marketing research are product research, sales research, customer research and promotion research. Learn more about the scope of marketing research only at the University Canada West.

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