Impact Of Marketing Research In A Small Scale Company
This research work is carried out to determine the necessity of market research for business survival. The researcher highlighted some objectives to ascertain the frequency organization conduct market research, to find out the most appropriate and effective method in acquiring information during market research, to ascertain the impact of market research result for effective management decision. To achieve the above objectives, the researcher used the survey design to obtained empirical information from the field by administering questionnaire to 45 Staff of marketing Department of Nasco food Nigeria Limited, Jos South Local Government of Plateau State. Two hypotheses were formulated; the analysis was done using simple percentage and chi-square to give a clear understanding in order to arrive at an explicit conclusion. The result of hypotheses one (1) shows that there is a significant relationship between market research and business survival, the second hypotheses indicated that there is a significant relationship between market research result and effective management decision. The researcher therefore concluded that market research is a solution for business survival and that market research result assist managers in making management decision. The findings prompted a key recommendation that organization whether new or existing should conduct market businesses. Market research result should not be ignored by managers as it will enable organization to take decision based on facts rather than assumption.
1.1 Background of the Study
Goal attainment is the watchword of every business organization. They exist to accomplish something in the large environment. Its special purpose or mission is usually clear at the beginning over the time, however, on or more things happen, its mission may become unclear as the organization grows and develops new product and market from time to time the company must undertake and understand a critical review and preview of their overall effectiveness through marketing research. Marketing research can be defined as the systematic gathering, recording, processing and analyzing of marketing data, which when interpreted will help the marketing executive to uncover opportunities and to reduce risks in decision making see Dillon, Madden and Firtte. The unwesal application of marketing research data by various marketing organization and other fields of human endeavour cannot be over emphasized. Marketing research identifies potential market and evaluates the market for purposes of designing an effective strategy to exploiting the market, achieving goals and objective by management.Because of the rapid change in the organization marketing and marketing environment, marketing research help companies to periodically reassess or research on its overall approach to the market place in which strategic planning is developed as the major areas where rapid obsolesce of objective, polices, strategies and programmes are constantly possible. It is a tool for achieving goals and objectives of an organization for efficiency and effectiveness in attaining the internal and external task, objectives and other marketing programme within the marketing environment.
Marketing concepts and process are understood as competition between businesses geared up, it becomes imperative to turn attention to identify the consumer behaviour as regards to their needs and wants which are naturally insatiable with marketing research. It holds the key in achieving organizational goals through identifying the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. It is based on market focus, customer orientation and behavior, co-ordinated marketing and effective communication system for effective and efficient decision marketing; implementation and control. It also deals with the controllable and uncontrollable variables, that regulates the affairs of an organization as a means of organization in the market environment. Companies shall be conversant of marketing research to continuously monitor the changing scene in the market which will help in identifying and highlighting on the SWOT analysis (strength, weakness, opportunity and strategies in time to meet new challenges as an opportunity in the environment. This helps in improving the management decision making, company’s mission, growth, strategy and portfolio plan that helps in long, middle and short term plan as a means of enhancing towards new market challenges and exploit the opportunities exposed to them, controlling the organizational weakness as a means of enhancing toward new market challenges and exploit the opportunities exposed of them, controlling the organizational weakness as a means of influencing some environmental threat facing marketing in the market environment.
Market change constantly and business need to have a clear understanding of both the supply and demand. Market research is very crucial to the survival and flourishing of every business as several businesses ends up with a big loss or collapse due to their inability to carry out a market research or on account of a poor market research.
Every business planning must be based on the analysis of a sound market research. One of the other reasons for poor business might be the absence of good demand for the service or product concerned. However, in most cases, the demand factor does not result in a heavy loss or collapse of business. Under poor demand either brings down their manpower or the rate of production to sustain the fall in income. Therefore, all types of business scenarios reveal that lack of market research will heavily affect the desired output. A good market research should be able to predict the market trend for the next 5-7 years.
There are numbers of ways in which market research can be carried out. The two most popular methods are either to appoint a market research analyst for the company or to hire the service of a market research firm that can carry out market surveys and research periodically. Several companies prefer taking the will not assistance of a research firm than appointing a market analyst. This is because the service of a market research analyst is required on a regular basis and it is rather going to add up to the overhead expenses. In choosing the market research firm, you need to take into account how long recommendation they have been in the field in addition to achievement of the team. Every good market research report must also contain a market analysis report and a prediction of the market trend for the next five (5) years.
Companies seem to know the pain point of customers and seem to perfectly put a finger on what exactly the needs and requirements are. However, this is something to admire, but how exactly do companies figure out and cater to the need of ocean of people, all of whom have different taste, preference and mind-set. Having thorough market information is the first requirement for any business to commence operation and survive in the ever changing environment.
An effective market research is so useful that companies can feel the pulse of the market and the customer, and make the customer feel that he cannot do without a certain product even if he had not felt the need for it earlier.
For business to survive, firms need to conduct market research considering the current changes in the environment in order to outsmart other competitors. Hence the need for this study intends to know whether market research could enhance business survival.
1.2 Statement of the Problem
The success or failure of any business depends on so many factors. In some cases, the reasons for the failure of a business are not critically analyzed to determine the real factor behind the failure. In same vein the success factor of business that have experience tremendous growth over three years are sometimes ignore. Most organization does not conduct market research before going into a business, before producing a new product into the market.
Organization ignores the fact that market research when conducted regularly will unravel the complexity that might occur at the course of doing the business. In line with this, organizations do not use the most appropriate market research method appropriate to guarantee business success. Most organization due to lack of fund find it difficult to invite/employ expert to conduct their market research.
Some organization neglect market research result and take decision based on assumption.
1.3 Research Questions
In order to facilitate the findings of this research, the following questions were formulated.
- Is market research necessary for business survival?
- How often do organizations conduct market research?
- Do organization employ expert to conduct their market research?
- Do market research result help managers to make effective management decisions?
1.4 Objectives of the Study
The fundamental objective of this work is to establish market research as a solution to business success. Others include the following:-
- To determine the necessity of market research in business survival.
- To ascertain the frequency organization conduct market research as related to their business success.
- To determine the impact of expert in conducting market research.
- To ascertain the impact of market research result for effective management decision.
1.5 Research Hypotheses
- Ho: Market research is not a solution for business survival.
- Hi: Market research is a solution for business survival.
- Ho: Market research result does not help managers to make effective management decision.
- Hi: Market research result help managers to make effective management decision.
1.6 Significance of the Study
This research study when completed will be of great benefit to scholars, business organizations, small and medium enterprise, general public and many more. The importance of market research in a business organization cannot be overlooked; this is because market research can unleash new ideas and opportunities to know the secret of surviving in the competitive business environment. It has been said that 80% of industrial innovation have come from customers themselves. Companies that do not actively listen to the market could therefore, be ignoring unmet needs and closing their ears to new product opportunities.
Those in the academia will find it very useful since it could form the basis for further study. Also, it will serve as source of reference to other researchers in this field.
Market research can provide answers on the size of the market, its growth prospects, the distribution channels, optimum pricing and factors influencing the purchasing decision.
Market research can help decide the optimum positioning for a product. In other word, how the product fits into the market, what its image is or will be and who is likely to buy it. (Ogilvy, 1983).
Market research can identify market trend, demographics, economic shift, customer buying habit and important information on competitors, knowing this information is essential to the success of your business, it will guide organization in making strategic business decision, uncovering unmet customers need and in many cases help you discover new ideas for product and services.
Market research helps organizations to communicate effectively, identify and understood opportunity pinpoint obstacle or problems, bench mark and evaluate your business success.
Some of these tasks which market research can perform provide a useful insight into consumers decision processes. More importantly market research is decision oriented to guide manages for business survival. (Ogilvy, 1983).
1.7 Scope of the Study
The study intends to capture Market Research as a panacea for business success within the geographical area of Plateau State Nigeria, Jos South Local Government, focusing on Nasco food Nigeria PLC. The study covers the period of 3 years from (2010-2013)
1.8 Limitation of the Study
In view of the restricted area of coverage, the findings and recommendation may be limited in some respect. The limitation of this research study is financial constraint considering the fact that the researcher is a student.
Some respondents could be bias in giving their answer, the refusal of some respondents to collect the questionnaire all in the name of being busy, generating data from the internet was difficult due to unstable network equally posed serious threat to the success of the study but in spite of the limitation mentioned above, effort has been made to obtain relevant data to arrive at an accurate decision that will meet the standard objectives of the study.
1.9 Defination of Terms
The following terms are defined in the context in which they are used in this research study.
An answer, remedy or solution to problems or difficulties.
This is any organization or entity established with the aim of producing goods or services with sole aim of maximizing profit.
This is an aggregate of people who as individual, organization have the need for product in a product class and who has the ability, willingness and authority to purchase such product. Also, it refers to a customer for a product or services:
This is any organize effort to gather information about the market or customer in order to identify problems and proffer solutions for accurate management decisions.
This is an unfolding picture of the future in new product work; it more customary refers to picture of some time and place related to a firm’s area of interest. The future scenario may be created by extending current trends or by leaping into the future and using other methods of deciding what will exist.
This is the continuous existence of a business entity or an organization.
Direct perception of truth, fact, independent of any reasoning process; immediate apprehension.
This is to study as a competitors’ business practices in order to improve one’s own performance.
The amount or degree of something most favorable to an end, also greatest degree attained under implied or specified condition.
To clear from complication or difficulty, to unfold, to solve e.t.c .
Summary Conclusion and Recommendation
The research work looked into the background of market research, statement of the problem, research questions, objectives of the study, research hypotheses, the significance of the study, scope of the study, limitation and definition of terms.
It also discussed the literature review in chapter two stating the concept of market research, the need for market research, types of market research, market research process, market research in small business, market research and consumer behavior, the link between market research and business survival and lastly, the decision that can be guided by market research.
The research also discussed about the research methodology which includes the research design, the population of the study, sources of data, method of data collection, method of data analysis and the decision rule.
Chapter four revealed the data presentation and analysis, test of hypotheses, discussion of findings and implication.
Lastly, chapter five of the research work pointed out the summary, conclusion, recommendation and suggestion for further studies.
In view of the analysis carried out in this study with respect to ascertain whether market research is a panacea for business survival, the Researcher came up with a conclusion from the findings that market research is a solution for business survival as it can unleash new ideas and opportunities in order to know and understand the secret of surviving in the competitive business environment.
Hiring expert to conduct market research consolidates business survival as appropriate skills, methods, principles and methodology will be employed. Conducting market research often helps firms to know and understands the behaviour of the final consumer because no one can successfully understands why everyone especially consumer behave the way they do but having knowledge about them is a starting point for successful marketing.
Market research assist managers to take decision based on fact rather than assumption as vital, reliable, relevant and accurate information are generated.
Lastly, a good market research is evidence that organization can survive in highly competitive environment. However, firm at the course of conducting research also face a lot of problems such as, bias response, unwillingness to respond to question, inadequate coverage due to bad road, unstable network and many more.
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