Marketing Research: Definition, Purpose and How to Do It

Marketing Research (Marketing Research) is a process that you need to do before starting a business. It aims to obtain objective and accurate data which can then be used as a reference in making decisions. The existing process includes data collection, observation, and processing of existing data on the object of research in the world of marketing. Whether it's a small or large business, anyone can use marketing research.

For more details, see the definitions from the following experts to make it easier for you to understand the definition of marketing research.

Definition of Marketing Research According to Experts

• Robby Susatyo

According to Robby Susatyo, what is meant by Marketing Research is an attempt to identify it objectively and systematically.

• Maholtra

Maholtra himself defines marketing research as a form of activity in the form of collecting, analyzing, and compiling information that aims to make decisions on the problems at hand.

• American Marketing Association (AMA)

Meanwhile, according to the American Marketing Association (AMA), what is meant by marketing research is a process aimed at connecting several parties through the means of information. Be it the general public, consumers and customers.

The Objectives of Marketing Research

1. Evaluating

Aims to evaluate the marketing strategy that has been implemented previously. In addition, Evaluating also serves to evaluate or review brand positioning by comparing our products with competitors. In short, Evaluating aims to find out what needs to be evaluated from your marketing strategy.

2. Understanding

The second goal is understanding. This aims to provide an understanding that feedback or input from consumers is the most important. Because in truth, companies need to know what consumers need in order to create products that match their wishes. At this stage, the research carried out is usually in the form of consumer habits, behavior, expectations, and complaints related to the product.

3. Predicting

The third is Predicting, which aims to predict the market. Of course, this one stage cannot be considered easy because this world is full of uncertainty. This makes predicting very risky because the results tend to be relative. Predicting is done when a company or brand wants to target the target market and develop a new marketing strategy.

4. Controlling

The last is controlling which aims to maintain every ongoing business process and is carried out regularly to overcome zero defects. Some things that become references in this stage include the position of the product in front of consumers, trends, and the effectiveness of the marketing tools used, and so on.

The Role of Marketing Research in Marketing Plans and Strategies

1. Creating Idea 

The existence of market research can help you in creating business ideas. Especially for those of you who are just starting your own business, this will give you an idea of the market to be targeted and be taken into consideration in taking the next step.

2. Variation of Ideas

Not just one idea, from doing market research you will get a wide variety of ideas to choose from. Next, you can note down several variations of ideas that are according to your interests so that they can be used as alternative choices.

3. Ease of Concept Development

One of the obstacles that are often encountered in developing a business is the difficulty of developing concepts. With marketing research, you can get a variety of information and data that can be used as an option to create a business plan.

4. Marketing Strategy and Development

Through marketing research, you will be presented with a variety of the latest trends. This is quite important considering the movement of market conditions from time to time is quite fast. By following the existing trends, you will get a variety of information that can be taken into consideration in implementing the next marketing strategy.

5. Product Development

Have you ever wondered why a business can sell more products just by changing the packaging or adding variety to the existing product selection? This is due to a change in strategy that has been considered through marketing research on consumers or certain market segments.

6. Market Test (Aim for commercialization)

The existence of market research can be used as an experiment to see if the results of existing research are in line with our expectations. Of course, this leads to commercialization or the generation of sales.

Marketing Research Methods

1. Questionnaire

Use a form with a list of required questions. This form will later be distributed according to the research sample you are aiming for. For example, if you open a gaming computer business, the questionnaire can be distributed to a community of game enthusiasts within a certain age range.

2. Research Group

In the form of group discussions that have the same interests. In this discussion, you can ask about their complaints, needs, and expectations regarding a product.

3. Survey

Generally random, not fixated on one particular community or group. This aims to find out the general picture of the community regarding your product.

4. Observation

Descriptive, observing an event on the basis of cause and effect. You will immediately observe the current market situation related to your business. For example through social media or visiting a place.

Market Research. Image Source: Unsplash/Campaign Creators

Basic Steps of Conducting Marketing Research

Here are some systematic steps in conducting marketing research:

1. Objective

This point is very crucial so that we know what goals to seek or achieve after the marketing research is completed. This objective can also later become our benchmark to focus on existing problems and not be fooled by other things that we may encounter when doing research.

2. Marketing Research Design

The research design aims to find out what procedures will be carried out later as well as a parameter when drawing conclusions. Existing procedures include data collection, hypothesis testing, conducting questionnaires or data collection, and much more.

3. Designing Data Collection Methods

There are 2 types of data used in the study, namely primary data and secondary data. Primary data is data taken directly from the field. While for secondary data the sources are taken from books, blogs, and other relevant references. After the data is obtained, then you will process the existing data into a database.

4. Sampling and Collecting Data

There are 2 sampling methods that can be used. Among them are probability and non-probability sampling.

5. Perform Data Analysis and Interpretation

Aims to process the data that has been successfully obtained so that further conclusions can be drawn.

6. Prepare Research Reports

Existing research reports are usually in the form of research results in the form of recommendations for evaluation of the next strategy.

That's brief information about Market Research (Market Research), if you are interested in starting a business and need capital or other loans, BFI Finance is ready to help you. BFI Finance has been established in 1982 and became the first financing company in Indonesia to list its shares on the Indonesia Stock Exchange. Making BFI Finance a trusted financing company and has been registered by the OJK. Be sure to stay up to date with information about the business, loans, lifestyle, and more on the BFI Blog. Business greetings!