What is Marketing Research?
Marketing research is the process of collecting and analyzing important information related to the issues that the business is concerned with, to serve decision-making related to marketing and business activities. The purpose of marketing research is to create a solid foundation for the management to make important decisions such as:
- Identifying and reviewing business opportunities and market challenges
- Assessing the feasibility, success, or risk of marketing strategies before implementation
- Directing and deploying communication and advertising projects
Therefore, the marketing research phase often takes place when businesses are preparing to launch communication projects to customers to increase the success rate of the campaign.
Examples of Marketing Research
Netflix is a brand that specializes in providing online digital content from the US, now available in 130 countries, including Vietnam. In the first quarter of 2023 alone, this online video platform gained 1.75 million new subscribers, bringing the total number of subscribers worldwide to over 232 million, generating $8.16 billion in revenue. The key to Netflix's outstanding success is its investment in marketing research.
First, they set goals for research activities to understand user needs and insights. From there, they propose solutions to adjust service quality to increase profits. Through survey research methods, A/B testing, and Quasi Experiment (non-complete testing), Netflix identified issues related to video quality and technology trends. With a solid database on the business environment and customer behavior, Netflix easily develops accurate and optimized marketing plans.
Marketing Research Methods
Observation Method
The highlight of the marketing research observation method is that it helps businesses better understand consumer purchasing behavior in the most objective and natural way. This method can replace communication with customers by placing public cameras in stores or places they frequently visit to record user actions. Some observation methods commonly used by marketing professionals include:
- Direct/Indirect Observation: In direct observation, marketers will follow the events and actions as they occur. Conversely, indirect observation examines the effects or results of a behavior.
- Disguised and Open Observation: In disguised observation, subjects are unaware they are being observed. In open observation, subjects know they are being studied.
- Using observation tools: When conducting human observation, results are assessed based on perception. In device observation, counters, scanners, etc., are used.
- Structured or Unstructured Observation: Structured observation helps businesses determine the order of behavior observation. Unstructured observation usually does not follow a set sequence.
Interview Method
The interview method is a widely used technique in marketing research, where the interviewer conducts surveys directly or via phone, text, email, etc.
To maximize the effectiveness of this method, create a comfortable, free interview environment with well-prepared, thorough questions. This will encourage participants to openly share their experiences and views.
Experiment Method
Experimentation involves implementing a marketing solution for specific issues on a small scale. The goal of this research method is to consider whether the proposed solution is suitable for real-world conditions.
Typically, marketers use this method to measure the impact of changes in cost, packaging, product features, customer service, etc. However, this method has the drawback of being very costly and time-consuming to implement.
Survey Research Method
In survey research, marketers collect data along with clear and specific evidence. For this marketing research method, you need to prepare a questionnaire for customers to answer. Each question relates to different content, requiring the researcher to compile and compare to select the most objective opinions.
