Marketing Research Vs Market Research
Succeeding in businesses requires adequate research on your target market and the marketing strategy you want to use.
While it is easy to confuse marketing research with market research, the two concepts are different.
In this article, we will detailedly explain the differences between marketing research and market research, as well as how each of these processes can affect or improve your business!
What is Marketing Research?
Marketing research is the study of the entire marketing process. It involves the collection, analysis, and reporting of information regarding a marketing situation.
This research helps a company to identify consumer demands, consumer expectations from a specific service or product, and how to achieve consumer satisfaction.
Marketing research involves the following procedures (in no particular order):
- Customer/Market Research
- Advertising Research
- Promotion Research
- Distribution Channel Research
- Product Research
- Sales Research
- Pricing Research
Customer/Market Research
Customer research is conducted to identify customer needs, segments, and behaviors. It focuses on researching a company’s verified or potential customers so that unmet customer needs can be identified for business growth.
The goal of customer research is to reveal clear details about a product’s current and potential consumers.
Advertising Research
Advertising research is an organized process of marketing research that is carried out to improve the productivity of product advertisements.
It is a detailed analysis conducted to test customers’ responses to an advertising campaign or advertisement.
Promotion Research
Promotion research studies the strategy a company should employ in creating awareness in their marketing campaigns. This research pays attention to market research, budget, and segmentation.
Promotion helps to communicate the company’s values and message to the consumers.
Promotion is implemented through the following:
- Advertising
- Public relations
- Sales promotion
- Direct marketing
Distribution Channel Research
Distribution channel research involves the survey and analysis of information relating to the sales and distribution of a product.
Distribution channel research studies several retail channels to enable efficient decision-making among the management.
There are three types of distribution channels. They include:
- Wholesalers
- Retailers
- Direct-to-consumer sales
Product Research
Product research refers to the process of validating a product idea to test if the idea will succeed or not. It helps a company to ascertain if its business idea can satisfy market demand.
Sales Research
Sales research (also known as Sales Control Research) is the aspect of marketing research that focuses on the formulation, planning, and control of a business’ marketing policies and operations.
Sales research helps to identify and measure all the variables that can affect the sales of the brand (either individually or in combination with other factors.)
Pricing Research
Pricing research aims to identify how much customers are willing to spend in purchasing a product or service. It enables the company to maximize revenue, profit, and market share by determining the optimal price point.
The goal of conducting marketing research is to provide the management with facts and regulations. The management needs authentic information to make accurate marketing decisions.
The Marketing Research Process
The marketing research process is of six steps. They include:
- Identifying the problem, finding alternatives, and discussing research objectives.
- Development of the research plans
- Gathering information
- Organization and analysis of information
- Reporting/presentation of findings
- Decision making
What is Market Research?
Market research is a branch of marketing research. It is the process of collecting information about your consumers and your target market so you can ascertain the success of your new product.
Market research also helps the company’s management understand if their existing products are acceptable in the market and effectively communicate the company’s values.
8 Types of Market Research
In no particular order, below are the eight types of market research:
- Brand Management Research
- Competitive Analysis
- Customer Satisfaction Research
- Consumer Insights
- Campaign Effectiveness
- Customer Segmentation Research
- Usability Testing
- Product Development
Brand Management Research
Brand management research is carried out in three stages.
1. Analysis of consumers’ current perception of the brand.
2. Planning on the company’s desired consumer perception if the consumers’ current perception is inaccurate.
3. Implementing corrective measures to ensure the brand is perceived as intended so the business can achieve its objectives.
Competitive Analysis
Competitive analysis is an evaluation of the weaknesses and strengths of a business’s potential and current competitors. It helps you to identify both threats and opportunities for your business.
Customer Satisfaction Research
Customer Satisfaction Research, (often abbreviated as CSAT), measures how a company’s products and services meet or exceed customer expectations.
Consumer Insights
Consumer insight is an interpretation of the patterns of consumers’ behaviors. It aims to increase the efficiency of a product or service for the consumer, and increase sales for the company.
Campaign Effectiveness
Campaign effectiveness helps to analyze if an advertisement was able to increase awareness, increase consumers’ desire to purchase the product, and reached the target audience.
Customer Segmentation Research
Customer segmentation is the process of dividing customers into segments based on common characteristics. These characteristics could be based on location (geographic), or behaviors (behavioral).
The aim of customer segmentation is effective marketing to those customers.
Types Of Market Segmentation
- Demographic segmentation.
- Behavioral segmentation.
- Geographic segmentation.
- Psychographic segmentation.
Usability Testing
Usability testing refers to product evaluation by having volunteers test out the product.
Product Development
Product development involves the creation, design, development, and marketing of new products or recently rebranded goods and services.
Comparison Table
As noted earlier, though it is easy to confuse marketing research with market research, both concepts are clearly different.
Let’s check thesee differences out in the table below.
Marketing Research | Market Research |
1. Definition Marketing Research is a well-structured study of all the aspects of business marketing. | 1. Definition Market research is a study that helps to collate information on the buyers, the market statistics, and the consumers’ behavior within the market environment. |
2. Scope Marketing Research has a wide scope. | 2. Scope Market Research has a limited scope. |
3. Independent or Dependent? Marketing Research is independent. | 3. Independent or Dependent? Market Research is dependent. |
4. Purpose Marketing Research helps to provide adequate information for effective commercial decision-making. | 4. Purpose Market Research helps to study the success rate of launching a product into a market. |
5. Nature of the Research Marketing Research is generic. | 5. Nature of the Research Market Research is specific. |
6. Branch Marketing Research is a branch of the Marketing Information System. | 6. Branch Market Research is a branch of Marketing Research. |
Differences between Marketing Research and Market Research (Details)
1. Definition
Marketing Research is a comprehensive analysis of a problem that relates to a company’s marketing situation.
Market Research is a study that helps to gather information about the marketplace and the consumers’ behavior within the market.
2. Scope
Marketing Research has a wide scope that covers the entire marketing process. This includes the “marketing mix”, otherwise known as the Four Ps of Marketing. They are:
- Product (services or goods)
- Place (where the product is sold)
- Price (how much the customer buys the product)
- Promotion (PR and advertisement)
Market Research has a limited scope as it only studies the consumer’s behavior and the market.
3. Independent or Dependent?
Marketing Research is an independent study that is developed by the company for the progress of the business.
Market Research is solely dependent on the requirements of the market research.
4. Purpose
Marketing Research is carried out to help a company make more informed commercial decisions; thereby ensuring better economic output.
Market Research is designed to study whether a product or service will be feasible or operable in a target market.
5. Nature of the Research
Marketing Research is generic in nature because it addresses various marketing issues and problems.
On the other hand, market research is specific in nature. This is because the insights received from studying a particular market may not necessarily apply to another target market.
6. Branch
Marketing Research is a branch of the Marketing Information System. It focuses primarily on the marketing information system of a business or company.
Meanwhile, market research is a branch of marketing research. It falls under one of the seven procedures that need to be carried out when conducting marketing research.
Conclusion
Marketing research and market research are both pivotal for commercial success of businesses. These concepts are different from one another and they should not be construed as meaning the same thing.