Industrial Marketing Research is defined as the objective and systematic process of obtaining, analyzing and reporting of data or information for decision making in industrial marketing. The industrial marketing researcher develops the research design, which basically indicates the procedure and the cost of conducting the research study.
Concept of Industrial Marketing Research:
Industrial Marketing Research is conducting to recognize the industrial customer’s opinion; it can be done pre-production, post-production or re-launch of the manufactured goods. Marketing research varies from scale to large level depends upon the business willingness to gather in-depth information.
The term industrial marketing research is used extensively in modern marketing management. It acts as a tool for accurate decision making as regards marketing of goods and services.
It is also useful for studying and solving different marketing problems in a systematic and rational manner. It is a special branch of marketing management. It is comparatively recent in origin. This acts as an investigative arm of a marketing manager.
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It suggests possible solutions on marketing troubles for the thought and selection by a marketing manager. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages.
It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems.
Industrial Marketing Research plays a very significant role in identifying the needs of customers and meeting them in finest possible way. The main job is systematic gathering and analysis of information.
Industrial Marketing Research is systematic trouble analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services.
Nature of Industrial Marketing Research:
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Industrial Marketing Research is the objective and systematic process of obtaining, analyzing and reporting of data or information for decision making in industrial marketing. This plays a very important role in identifying the needs of customers and meeting them in best possible way.
The main task is systematic gathering and analysis of information. This is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis. This is essential for strategic market planning and decision making.
It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans.
Industrial Marketing Research is a growing and widely used business movement as the sellers need to know more about their final consumers but are generally widely separated from those consumers. This is a necessary link between marketing decision makers and the markets in which they operate.
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Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the implication of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.
Industrial marketing research is one of the principal tools for answering questions because it:
(i) Links the consumer, customer and public to the market through information used to identify and define marketing.
(ii) Generates, refines and evaluates marketing actions.
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(iii) Monitors marketing performance.
(iv) Underlines the understanding of marketing as a procedure.
Importance of Industrial Marketing Research:
Industrial Marketing Research is fast growing in its importance due to increasing competition, fast moving technological developments and changing industrial consumer needs, expectations and attitudes.
The importance of marketing research is universally accepted. The status of marketing research in business management is identical to the position of brain in a human body.
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The following points suggest the importance of industrial marketing research:
1. Planning and Execution of Marketing Plan:
A business unit can plan and execute all activities right from manufacturing to marketing with reasonable accuracy and confidence due to the guidelines available through marketing research.
2. Quick and Correct Decision-Making:
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MR facilitates quick and correct decision making by marketing managers. It enables management to take quick and correct marketing decisions.
3. Effective Solutions on Marketing Problems:
MR provides effective solutions to marketing problems. MR is the radiology and pathology of marketing operations of business. It diagnoses the business ailments and suggests measures to remove them. Marketing researcher acts like business doctor and prescribes treatment for business elements.
4. Huge Spending on MR:
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Large companies spend crores of rupees on marketing research activities. New techniques and methods are used in the conduct of research activities in an accurate manner. This suggests the growing importance of MR.
Scope of Industrial Marketing Research:
The scope of industrial marketing research can be summarized as follows:
1. Industrial Product Research:
Product means the goods and services which are sold to the consumers. It includes consumer products and industrial products. Product research studies the individual product. It studies the making and marketing of the product.
It studies the colour, size, shape, quality, packaging, brand name and price of the product. It also deals with product modification, product innovation, product life cycle, etc. The product is modified (changed) as per the needs and wants of the consumers. Therefore, the product will not fail in the market.
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Consumer is the person who purchases the goods and services. The consumer is the king in the market. Consumer research studies consumer behaviour. It studies the consumer’s needs, wants, likes, dislikes, attitude, age, sex, income, location, buying motives etc. This data is used to take decisions about the product, its price, place and promotion.
Packaging research is a part of product research. It studies the package of the product. It improves the quality of the package. It makes the package more attractive. It makes the package more convenient for the consumers. It reduces the cost of packaging. It selects a suitable method for packaging. It also selects suitable packaging material.
Pricing Research studies the pricing of the product. It selects a suitable method of pricing. It fixes the price for the product. It compares the company’s price with the competitor’s price. It also fixes the discount and commission which are given to middlemen. It studies the market price trends. It also studies the future price trends.
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Advertising research studies the advertising of the product. It fixes the advertising objectives. It also fixes the advertising budget. It decides about the advertising message, layout, copy, slogan, headline etc. It selects a suitable media for advertising. It also evaluates the effectiveness of advertising and other sales promotion techniques.
Sales research studies the selling activities of the company. It studies the sales outlets, sales territories, sales forecasting, sales trends, sales methods, effectiveness of the sales force etc.
Distribution research studies the channels of distribution. It selects a suitable channel for the product. It fixes the channel objectives. It identifies the channel functions like storage, grading, etc. It evaluates the competitor’s channel.
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Policy research studies the company’s policies. It evaluates the effectiveness of the marketing policies, sales policies, distribution policies, pricing policies, inventory policies etc. Necessary changes, if any, are made in these policies.
9. International Marketing Research:
International marketing research studies the foreign market. It collects data about consumers from foreign countries. It collects data about the economic and political situation of different countries. It also collects data about the foreign competitors. This data is very useful for the exporters.
10. Motivation Research:
Motivation research studies consumers’ buying motives. It studies those factors that motivate consumers to buy a product. It mainly finds out, why the consumers buy the product? It also finds out the causes of consumer behaviour in the market.
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Market research studies the markets, market competition, market trends etc. It also does sales forecasting. It estimates the demand for new products. It fixes the sales territories and sales quotas.
Media research studies various advertising media. The different advertising media are television (TV), radio, newspapers, magazines, the internet etc. Media research studies the merits and demerits of each media.
It selects a suitable media for advertising. It does media planning. It also studies media cost. It helps in sales promotion and to avoid wastage in advertising.