Market and Business Performance - Research Paper Example

Market Research and Business Performance

1.0 Introduction

Every company in the corporate world has a great interest in increasing its productivity and profitability of its business ventures. Additionally, the need to widen the customer base is another focus of these companies. In today’s world of business, it is significant to note that the different producers in an industry compete for the same customers (Birn, 2004, p. 228). The companies usually engage in the production of the same products but what differs is the branding. In this case, the need to compete for the same clientele base for companies that produce the same products in the market has resulted in the formulation of strategies to help them sustainably stay in the market (Cacciolatti and Lee, 2016 p. 5605). The most advisable strategies to implement to address competition are based on marketing research. Marketing research entails the collection of information that is valuable in the process of decision-making for entrepreneurs and companies regarding the availability of a market for the products and services that the companies offer (Bulut, 2013, p. 260). Since marketing is essential for attracting customers, the need to invest in marketing research is highly available. To improve marketing, companies must meet certain needs of the market that help link between the customers, the producers and the impact of marketing on the purchasing behavior of the customers.

Arguably, the belief that marketing research is a positive factor that improves the performance of business through marketing experience has been criticized. The criticism from practitioners and academicians is based on the little influence that marketing research has on the overall performance of business entities. The validity of this argument is critically analyzed in this literature review.

2.0Literature review the key concepts of marketing research

Apparently, Kazakov, (2016, p. 309) asserts that business success has been greatly associated with the strategies that are put in place by the different companies with the aim of managing information that they do access about marketing. Bulut (2013, p. 260) argues that better information is required in making better decisions that can help the business enterprise to continue surviving in the industry. Despite the consensus held by many practitioners that the marketing information is central to the overall success of business regarding performance, there is little research that has been done to prove this (Feinberg, Kinnear & Taylor, 2013, pp. 2015).

According to Haluk Köksal, (2008, p. 419) information presented by researchers indicates that the there are few exceptions of research that deals with the collection, the use as well as the effect of information on companies. The researcher asserts that the activity of market research does not mean making decisions that are paramount to the success of businesses. Feinberg, et al., (2013, p. 218) further insists that the essence of carrying out market research is based on the fact that the information can be used to support the process of decision-making in companies (Gupta, 2003, p. 30). As an alternative of vexing to regulate the undeviating link amid market research and business performance, managers should seek to understand the intervening variables (Ewah, 2013, p. 110). In this case, the examination of organizational problems, the motives as well as the constraints of the need to seek information should be key (Gupta, 2003, p. 121).

Additionally, companies need to understand the essence of controlling and using of organizational information to their advantage (Takhar-Lail and Ghorbani, 2015, p. 64). Hart (2016, p. 56) asserts that the lack of information about a market results in the failure of a product in the marketplace. However, there is a question concerning the scope of market research. The question analyse the business activities. The consideration of the size of the company as well as the industrial context influences the type of research techniques and designs to be employed. Therefore, it is not factual to claim that marketing research can have a direct effect on the success and performance of business enterprise (Parasuraman, Grewal, & Krishnan, 2007, p. 107). The adaptability of the market research to the environment in which it is supposed to be used is significant in the whole process of decision- making in different enterprises information (Stone and Desmond, 2007, p. 134). Consequently, it is noted that market alone is not a guarantee of success rather; intelligent manipulation of the information collected during market research is the gateway to a successful business (Gupta, 2003, p. 153).

3.0 Determine and assess the different marketing research techniques

According to Haluk Köksal, (2008, p. 419), there exists a difference between marketing research and market research. Marketing research was earlier introduced as the process of developing a link between producers and customers with the intent of serving the customers better and improving the marketing experience for the company through profit amassing (Gupta, 2003, p. 121). On the other hand, market research is defined by the different activities that are used in gathering and interpretation of data concerning a market for a specific product that a company manufactures the understanding of these two terms provides clarity on the relevant techniques that should be employed by companies in the execution of marketing research.

Kolb (2008, p. 29) asserts that two marketing research techniques are widely used in the defining the relationship that exists between the customers and the producers. In the recent years, marketers either opt for market techniques that are specific to their industry or those that are methodological as opined by Smith & Albaum (2005, p. 53). Primarily, the most commonly applied market techniques identified by these researchers include the consumer marketing research and the business-to-business (B2B). The former involves the research that places emphasis on the response that the consumers elicit in connection to the marketing mix used by the different companies. In the B2B technique, marketers view other business as holistic customers and thus seeks to develop mechanics that are associated with the industry in which they operate in (Kazakov, 2016, p. 299).

The most commonly used techniques that follow the methodological approaches are the qualitative and the quantitative marketing research. Birn (2004, p. 67) confirms that the objective of collecting information using qualitative method is based on the need for marketers to explore the behaviors of the consumers. Additionally, the marketers examine the motivation behind the behaviors that they exhibit.There is a need to achieve fine and comprehensive results about the customer trends. Stacey and Wilson (2014, p. 103), advice that smaller groups should be explored. Therefore, the origin of market segmentation is based on qualitative marketing research technique (Birn, 2004, p. 228). Besides qualitative technique, the other methodological approach is quantitative market research. The method serves the purpose of providing an understanding of the characteristics of a large number of customers by describing their most observable traits while purchasing goods and services in the marketplace (Kothari, 2005, p. 3). Birn (2004, p. 170) reveals that marketers commonly use questionnaires, interviews as a well as focus groups in complementing quantitative marketing research. Principally, the use of either quantitative or qualitative techniques in marketing research is characterized by the application of experimentation or ethnographic studies as confirmed by Stacey and Wilson (2014, p. 137)

4.0Impact of marketing research on business performance levels

The existence of producers and buyers in a typical market is a common aspect in the corporate world. Insightfully, different variables and correlations define the complexity that exists in the marketplace. In one way or the other, different producers in the market compete for the same clientele base in order to lure the in buying their products as well as services (Takhar-Lail and Ghorbani, 2015, p. 71). To engage in this exercise with confident and expertise, companies opt to invest their tie and resources in marketing research. Takhar-Lail and Ghorbani, (2015, p. 146) hints that marketing research can substantially have an impact on the performance of businesses. In the first instance, marketing research a great impact on the acquisition of information. Since the marketing process is dependent on the acquisition of right information about the specific market, Protcko and Dornberger (2014, p. 227) note that business owners seek the advice of their marketing managers about the suitability of the market that they want to venture into before making crucial decisions. With the marketing research information available, marketers can easily understand and predict the needs of the customers through their behaviors. The acquisition of this information further provides a platform for strategizing and structuring the market mix in accordance to the needs of the customers (Stone and Desmond, 2007, p. 170). Meeting these needs results in the growth of the business through an increase in the revenues collected.

The impact on the performance levels of businesses can be explained by the actual marketing research activity (Takhar-Lail and Ghorbani, 2015, p. 97). The importance of marketing research is considered from the gains that the company gets as a whole. The information collected through marketing research can be supplied to the finance accounting as well as customer relations departments. Notably, the information can help the relevant department staff to put in place growth-oriented strategies as Cacciolatti and Lee (2016 p. 5601) assert. With growth observed in every department, the overall performance levels of the business will rise. Additionally, the customer-centred approach will dominate the strategies formulated in the company because of the benefits that they harbor (Bulut, 2013, p. 270). While stressing on the impact of consumer-centeredness approach on the overall growth of business, Cacciolatti and Lee (2016 p. 5607) insist that enhanced performance is largely observed in companies that implement strategies that are centered on consumers than in firm-cantered ones. The reason for explaining this assertion is embedded in the fact that performance can only be measured by the extent to which consumers prefer a product or a service offered by a company. The preference is measured regarding the purchase that are made at an interval of time as a response to the marketing activities executed by the marketers (Stone and Desmond, 2007, p. 146).

While marketing products, it is evident that the marketers end up creating and defining the consumer needs that they can satisfy as pointed out by Feinberg, Kinnear & Taylor, (2013, p. 218). The impact of understanding these needs and their changing nature can be used in elevating the performance levels of businesses. The strategies and structures put in place to guide the companies in the effective delivery of services and quality products to the customers are the sources of guaranteed performance. All of these are entailed in the application of the best market mix in which companies achieve competitive advantage by regularly adjusting the prices, improving the quality of the products enhancing promotions expanding the places of sale (Stevens, 2006, p. 59). These adjustments are made in response the ever-changing marketing mix aspects. For instance, the festive seasons are characterized by a change in customer preferences when compared to the other purchasing seasons.

Minimizing risk is another advantage that marketing research offers to business that exclusively engage in market research. In marketing, companies are prone to risks that threaten the closure of these enterprises as pointed out by Protcko and Dornberger (2014, p. 230). Presumably, the risks arise from investing and executing projects that do not meet the demands of their specific industries. The mismatch between the investments and the industry needs results from a lack of knowledge about the changes that are experienced in customer behaviors. Stevens (2006, p. 71) highlights that the remedy to this challenge is to engage in comprehensive marketing research on a regular basis. Companies equipped about the risks derived from market information are most likely to make profit-guaranteed investments (Belk, 2006, pg. 165).

5.0 Challenges that exist in the field of marketing research studies and practice

Practicing marketing research is characterized by several problems. Change is evidently being observed in the market research industry. The traditional techniques of market research are gradually being replaced by a modern system that supports market research due to the existential challenges experienced in the corporate world (Protcko and Dornberger, 2014, p. 228). Primarily, the changes observed in the society are proving to be a challenge to the market research strategies that have been used in the past. The market research industry is struggling to adjust to these shifts (Kaden, 2006, p. 30). It is mainly noted in the mode of advertising that has changed from analog to digital in a short span. To commence with, the dispersion observed in consumer interests, choices, as well as consumption trends, are being affected the rise in social networks and the unique communications that are portrayed by peers. Moreover, the shift from landline phones usage to mobile phones, increase in online research are some of the technological shifts that have impacted on the operations of the market research industry (Stone and Desmond, 2007, p. 426). Besides these challenges, the ever-increasing gap between the speed in which data is processed and the ability that humans have to process and analyze, extract insights and build strategies from the conclusions drawn from this data is wanting (Kaden, 2006, p. 121).

Sarstedt and Mooi (2014, pp. 13) demonstrate that within nowadays’ unthinkable world, there is no end to managers of companies that are driven by low self-esteem to search for right choice in every decision made within an organization. In most cases, many business enterprises aim at gaining popularity and yielding more profits in the market. Therefore, seeking the added advantage of a large customer base over their competitors requires that the decisions made are prudent and well-thought of.

Apparently, these leaders prefer settling for the best choice to sustain the leadership through expanding the odds of picking the best choice among the accessible options (Obikeze and Eze, 2013, p. 3). The planning does not stop at making the right choices through marketing information gathered, but it goes as far as actualizing the viable choices. If statistical surveying is to help in the preparation of basic leadership, it must be flexible to the context in which it will be applied and be viewed as a proper inquisitive tool by the managerial team (Stone and Desmond, 2007, p. 142). It is evident that the advantage in business performance results in more from how data is utilized than from who does or does not have it. In a similar manner, statistical surveying alone does not ensure achievement; knowledge utilization of statistical surveying is the way to business accomplishment (Kaden, 2006, p. 198).

Studies conducted by Feinberg, Kinnear and Taylor (2013, pp. 218) uncover the significance and part of marketing assessment as a veritable tool for upgrading the execution and adequacy of business enterprises. Likewise, there is a requirement for practical client benefit choices and fulfillment inside the business corporations as it affects their level of firm benefit and human assets administration. Development and improvement, thus greatly affects the level of business performance and improvement of the economy and towards country's building (Parasuraman, Grewal, & Krishnan, 2007, p. 156).

The exploration of market research information as related to business performance uncovered that there are stages involved in promoting research and must be followed in moving towards the preferred market for a particular business. This will give a bearing and upgrade execution for ideal results according to the decision-making stages that are vital for execution to totally occur (Sarstedt & Mooi, 2014, pp. 33). In spite of the fact that not all business association rely upon marketing research for survival, some companies have achieved results without expanding their marketing research options. A few organizations believe that the implementation of projects of a business depends on a single technique to achieve high productivity (Gupta, 2003, p. 198).

6.0Critique the role of strategic foresight and scenario planning in the research process

In strategic foresight, the future trends are explored. Its application is employed in different areas, marketing inclusive (Stevens et al., 2012, p. 27). Since research into the future trends aims at providing a plan, the exploration of the different scenarios that have been reported within an organization or its competitors can be used a point of reference in strategic foresight. Distinctively, strategic foresight and scenario planning can be applied to the discipline of marketing, through marketing research in offering varying roles to marketers. Notably, consumers have the ability to identify the future needs of the consumers by aligning them with outcomes of marketing research. Feinberg, Kinnear & Taylor (2013, p. 226) stress that marketers intelligently inculcate both strategic foresight and scenario planning into the activities of marketing research with the aim of making the right decisions. The planning of their responses and actions are done that the future needs. Scenario planning is evidently one of an essential aspects that are can be supplemented by marketing research in order to sustain the competitive advantage of companies in the future (Belk, 2006, pg. 255). The assertion can be supported by the fact that the market environment is not static at all.

Belk (2006, pg. 260) confirms that strategic planning is greatly dependent on both scenario planning and strategic foresight. The implication of strategic planning on the overall research process serves as a platform through which marketers recognize the future needs of both customers and the corporations. The lack of strategic foresight within a company might result in the failure of many businesses. For instance, Kodak Company failed to engage in customer needs especially pricing research and therefore its strategic foresight was miscalculated and the overpriced acquisition of another company, Sterling Drug Inc. resulted in its failure (Obikeze and Eze, 2013, p. 3).

7.0 Conclusion

The discussion has comprehensively explored marketing research together with the benefits as and challenges that are associated with it. Additionally, it is noted that the impact that marketing research has on the overall performance of business has been thorough explained. In reference to the points presented in the discussion, the assertion that marketing research has little influence on the performance of business turned to be flawed. Evidently, both theoretically and practically, marketing research defines the marketing mix components that have to be aligned with the needs of the consumer and the market in general. The performance of a company is directly linked to the response that customers offer to market through making purchases, without which any businesses would have gone out of operation. The understanding of customer behavior and trends, companies easily identify changes that occur in the market and strategically plan for integrating the changes. Consequently, the performance is enhanced. Despite the challenges outlined, the fact is that the correct application of information gathered from market research overshadows the challenges with increased organizational performance levels.

Reference List

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