The contemporary business world is rapidly changing, and it is essential to trace the slightest change to remain competitive. Hence, companies conduct a variety of market researches to keep updated. Clearly, the success of a business depends on the quality of the research implemented as wrong data can lead to erroneous strategies which can lead to significant losses. It becomes clear that information is one of the most important strategic assets of a company and businesses have to gather high-quality data.
In the first place, it is necessary to consider the stages of marketing research. Boone and Kurtz (2011) single out six major stages of the marketing research: defining the problem, conducting exploratory research, formulating hypotheses, creating a research design, collecting data, and interpreting research information. Thus, companies have to understand the issue and conduct research accordingly. Of course, collecting data is one of the most important stages as it is the basis of the development of a new strategy. It is essential to choose the right method to acquire valuable information.
Collecting data can be carried out in numerous ways. It can be exploratory research, a survey, observations, secondary data analysis, and experimental research (Boone & Kurtz, 2011). Admittedly, each of these methods has to be used to meet particular goals. Most importantly, data collection has to be comprehensive and detailed. Of course, this requires additional investment. Nonetheless, efficient research has proved to be beneficial for companies as they are able to forecast successfully. For instance, such companies as Oberto Sausage (Washington) and Ogden Publications (Oklahoma) develop their strategies on the basis of numerous surveys and data collection (Boone & Kurtz, 2011).
These companies manage to predict changes in the market and react accordingly. Hence, such businesses are expanding all the time and provide new products and services which become popular among their customers.
When it comes to international marketing research, the same types of research can be used as well as ethnographic research. At this point, it is necessary to add that companies entering (or operating in) the global market need high-quality data collection and analysis as one mistake can lead to complete failure (Cavusgil & Riesenberger, 2009). Thus, companies have to know about competitors, cultural peculiarities of the target audience as well as legislation in this or that area. An example of the importance of research preceding the launch of a new product can be Procter & Gamble with its introduction of diapers in the Japanese market.
The company did not implement research prior to the introduction of diapers in Japan and made considerable losses as the product (even though it was useful) did not become popular as Procter & Gamble failed to take into account cultural peculiarities of the region (Cavusgil & Riesenberger, 2009). The company conducted in-depth research and managed to develop a successful strategy.
To sum up, it is possible to state that collecting data and proper analysis of information is crucial for a company operating nationwide as well as globally. The contemporary business world is highly competitive, and businesses have to respond to changes which are taking place constantly. Researching markets, the companies can trace these changes and develop appropriate strategies which enable them to operate in their niche and/or expand. Clearly, any research needs time and funds, but this is a necessary investment as the company will make greater losses without it.
Reference List
Boone, L., & Kurtz, D. (2011). Contemporary Marketing. Mason, OH: Cengage Learning. Web.
Cavusgil, S.T., & Riesenberger, J. (2009). Conducting market research for international business. New York, NY: Business Expert Press. Web.