The Role of Marketing Research

Marketing research is a valuable tool that is in great demand in any dynamic business environment. Many managers rely on these results in formulating their business strategies and tactics. However, it is important to understand the proper role of marketing research before it is used to make business decisions.

Managers use a number of inputs in making business decisions. These include custom (or primary) marketing research, secondary research, experience in a market or industry, conversations with other managers, etc. One major study of marketing, the PIMS Study from the University of Pennsylvania, indicates that a large percent of the variance in marketing results comes from an immeasurable variable that they label managerial intuition. Therefore, the proper role of market research in the decision process is a source of additional information and not the answer. Results of research should be presented in this context to insure that the information is used appropriately.

If you conduct custom research, make sure that your research provider frames the role of research within the proper context of decision-making. They should challenge you to examine the research questions upfront, to ensure that they will be providing the answers you need to know. And, make sure they design the research to answer specific information needs rather than general topical areas. You will then have the information needed to make the decisions that are required.