Marketing Research Importance for New Product

Introduction

Managers need vital information before introducing new products and services into the market. Such new products are those that create value for the consumers. As a result, it is important for companies to carry out marketing research before introducing a new product. The aim of this research is to obtain the desired facts and data that are required to make essential marketing decisions. However, for managers to get the best results during the research, they need to understand the process and its probable constraints. According to Aaker et al. (2012), marketing research is a process that creates a link between the various stakeholders in the market. To this end, it connects the manufacturers, customers, and end-users to the new product that is to be marketed. The connection is made through the information used to determine the marketing prospects and limitations of the target goods and services.

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In this paper, the author will focus on the importance of marketing research on the success of a brand new product. To this end, the author will focus on the marketing research that involves the 7Ps. Relevant examples will be provided where applicable. The examples will be cited to support the findings. In addition, the paper will discuss the key principles and characteristics of marketing research. The objective of this analysis is to provide an overview of the steps that should be taken to ensure the success of the marketing study and the new product.

Marketing Research and the Success of a Brand New Product

An Overview

Marketing research is considered as the systematic collection, documentation, and evaluation of quantitative and qualitative data related to the promotion of new goods and services. The products can be brand new or an upgrade of an existing commodity. Kotler and Armstrong (2011) are of the opinion that the primary aim of marketing is to determine and analyse the constant changes associated with marketing elements. The process also highlights the effects of these changes on consumers and buying trends.

For decades, most people and managers have been using the terms marketing and market research interchangeably (Bradley 2010). However, the two phrases are different. For example, marketing research focuses specifically on the concept of promotion (Cravens & Piercy, 2012). In addition, the study is classified into two parts. The segments entail consumer and business to business (B2B) marketing research.

Characteristics of Marketing Research

For managers to understand the significance of marketing research, it is important for them to recognise the key characteristics of the process. The primary features are systematic and objective. According to Burns and Bush (2013), systematic planning is crucial to all the stages of marketing research. All procedures carried out at each phase should be well planned and recorded. To get the desired results, the team carrying out the marketing research should adopt scientific approaches in the process of data collection and evaluation. Findings from numerous studies reveal that conducting research by using multiple and competing hypotheses provides managers with the best results.

Marketing research needs to be objective to ensure the success of the brand new product. According to Boone and Kurtz (2012), the study aims at providing managers and marketers with precise information that reflects how the brand new product will perform in the market. To get the desired and accurate results, the research should be carried out in an impartial manner. In addition, the entire process should be free of any bias from the marketing team and the managers. The reason is that any study that is biased may lead to the collection of predisposed data. As a result, the new product may fail to perform as expected in the market. Marketers should also be objective when collecting information. Objective data provides companies with a comprehensive view of the marketing process (Bradley 2010).

Techniques used in Marketing Research

There are a number of strategies adopted to carry out marketing research. To ensure the success of a new product, managers should evaluate the techniques that would lead to the generation of the desired and accurate results. Some of the methods include Ad Tracking, advertising research, and buyer decision-making process. Others are brand awareness, association, attribute, and name testing (Aaker et al. 2012).

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Ad Tracking is a technique that is used to monitor the expected performance of the product. The evaluation is based on brand awareness and preference (Clow & James, 2013). On the other hand, advertising research is used to predict the effectiveness of advertisement strategies used to publicise the brand new product. The efficiency is measured by the ability of the advertisements to build a strong brand name and motivate customers to buy the new product. As a marketing study technique, brand awareness and association entails the evaluation of the degree to which consumers may recall and identify with the name of the new product. The process of buyer decision making entails the assessment of what motivates consumers to buy certain products (Pride & Ferrell 2011).

Other marketing research techniques, which can be used to determine the success of a brand new product, are commercial eye-tracking, concept testing, coolhunting, and copy testing. Others are strategic internet intelligence, demand estimation, and segmentation research. As a marketing technique, commercial eye-tracking involves the evaluation of the advertisements used to market products and the visual behaviour of customers. Concept testing evaluates the probable acceptance of the brand new product by the target consumers (Malhotra 2011). On its part, copy testing assesses the performance of an advertisement before it is aired. When using this technique, marketers analyse such aspects as level of attention and motivation among the audience.

During marketing research, marketers can also review internet strategic intelligence and distribution channel audits. Jobber and Ellis-Chadwich (2012) observe that strategic internet intelligence, as a form of marketing research technique, entails gathering the opinions and views of consumers regarding their experiences with different products in the market. With the help of this strategy, marketers are able to determine the right information to be communicated when advertising the brand new product. Auditing distribution channels helps to measure the attitudes of retailers and distributors towards a new product (Burns & Bush 2013). If vendors have a positive outlook, they tend to promote the product to consumers. As a result, the commodity may gain the desired success in the market.

Importance of Marketing Research

A marketing research process that is guided by information on the characteristics of the procedure, and which adopts the appropriate techniques, enhances the success of the new product in the market (Bradley 2010). A number of studies conducted in the corporate world support the importance of marketing research. According to Aaker et al. (2012), marketers use the procedure for learning purposes. They also use it to make informed choices.

Select Promotional Techniques

Marketing research is essential to the success of a new product because it helps companies to develop the appropriate sales promotion techniques. The method leads to increased sales in the market. The process also helps marketers to choose the best media to publicise the product. In addition, marketing research helps to manage the challenges associated with after-sales and to prepare an advertising budget (Kotler & Armstrong 2011). For example, a company wishing to bring a new energy drink into the market can come up with the right budget based on the advertisement and sales promotion techniques chosen.

Provide Alternatives

One of the benefits of marketing research is its ability to provide companies with a picture of what will happen when a new product is promoted. In addition, the procedure gives marketers alternative choices (Clow & James 2013). For example, an effective marketing research can provide companies with multiple options that can be used to introduce brand new products into the market. As a result, the marketers can select more than one alternatives based on how their ability to promote the success of the product.

Studies Consumer Behaviour

Marketing research provides vital information on the behaviour and attitudes of the target consumers. Some of the data provided include preferences, age, and levels of income. In addition, the research also highlights the opinions of customers with regards to the manufacturer’s products (Bradley 2010). The information is used by marketers to create the appropriate production and marketing policies. For example, a company launching a new affordable cosmetic product may focus on female consumers from the middle class.

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Evaluate Marketing Performance

Marketing research helps marketers to assess the performance of the marketing strategies adopted by the company. As such, the appropriate measures can be put in place to enhance the process. According to Jobber and Ellis-Chadwich (2012), the process is used to gather data on the effects of such aspects as brand name, price, and packaging on sales. For instance, marketers can gather information on other products in the market and advice the company on the type of packaging that will motivate consumers to purchase the brand new commodity.

Effective Promotion

Promotion is important to the success of a product. Marketing research helps companies and manufactures to determine the best advertising channels. The platforms include radio, internet, television, and print media. The media channels used can be paid for or used for free (Kotler & Armstrong 2011). Selecting the right channel to connect with consumers can attract a big number of customers within a short duration. Poor marketing can affect the success of the new product in the market (Boone & Kurtz 2012).

Benefits to Products

One of the initial steps of marketing involves the process of determining the needs and preferences of the consumers. The information helps companies to develop marketable products and services. However, familiarity with consumers’ preferences alone does not guarantee the success of the new commodity. One of the factors that enhance the success entails the benefits associated with the product. Marketing research helps marketers to relay the right information about the advantages of a product to the target consumers (Pride & Ferrell 2011). For example, a brand new product can have the benefits needed by consumers, but fail to succeed in the market. The failure may be associated with the inability of the marketers to communicate the benefits.

Formulate Market Strategies

Today, the markets targeted by companies are both local and global. Some manufacturers find it challenging to communicate information about their commodities and connect with consumers from abroad. In addition, other companies find it difficult to control distribution channels and predict the needs of the customers (Burns & Bush 2013). As a result, such factors make it hard for the new product to compete in the market and achieve success. The marketing information gathered during research helps marketers to develop and implement the suitable promotional strategies that can be used to manage the challenges.

Sales Forecasting

Maintaining optimum levels of stock is a major problem for most production managers. However, production of commodities is influenced by demand. As a result, it is important to carry out a scientific forecast of probable sales for the new product. Malhotra (2011) observes that marketing research helps managers to predict sales using market share, jury, and sales force techniques. The information enables firms to determine the best marketing plans for the new commodity.

Conclusion

Research is the process of collecting information to gain knowledge on something that is not well known. Marketing research is important to the promotion of a new product. Conducting research on the 7Ps will improve the performance of the brand new product in the market. Some of the benefits of this strategy include helping manufactures to formulate and implement the best marketing strategies, forecast sales, and determine the needs of consumers. In addition, the process helps to evaluate the marketing performance of an organisation. If marketing research is carried out well, manufacturers will be able to facilitate the smooth introduction of brand new products into the market.

References

Aaker, D, Kumar, V, Leone, R & Day, G 2012, Marketing research, 11th edn, John Wiley & Sons, Hoboken.

Boone, L & Kurtz, D 2012, Contemporary marketing, 15th edn, South-Western College Publishers, Sydney.

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Bradley, N 2010, Marketing research: tools and techniques, 2nd edn, Oxford University Press, Oxford.

Burns, A & Bush, R 2013, Marketing research, 7th edn, Prentice Hall, Upper Saddle River.

Clow, K & James, K 2013, Essentials of marketing research: putting research into practice, SAGE Publications, Inc., Thousand Oaks.

Cravens, D & Piercy, N 2012, Strategic marketing, 10th edn, McGraw-Hill Education, New York.

Jobber, D & Ellis-Chadwich, F 2012, Principles and practice of marketing, 7th edn, McGraw-Hill Education, London.

Kotler, P & Armstrong, G 2011, Principles of marketing, 14th edn, Prentice Hall, Boston.

Malhotra, N 2011, Basic marketing research, 4th edn, Pearson, Harlow.

Pride, W & Ferrell, O 2011, Marketing, 16th edn, South-Western College Cengage Learning, Melbourne.

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