What is Marketing Research? How does it differ from marketing information system?
Marketing research refers to the process of collecting information required by the marketing managers for decision making. It is an important component of marketing information system. As defined by the American Marketing Association marketing research refers to “a systematic gathering, recording and analysis of data about problems related to the marketing of goods and services”.
An organization needs information to carry on marketing effectively i.e. information about customer wants, market demand, competition, distribution channels etc. Businesses operate in a dynamic environment and so they need regular and up to date information. Marketing research can help an organization to understand the consumer’s needs, anticipate the future trends and reduce the risk of failure. It has the following characteristics:
- It is a systematic process of collecting data Market research is a formal process which is planned before starting the research. It is to identify the information required for solving the marketing problem.
- Data is collected from objective and reliable sources without any personal biases or prejudices.
- Research is carried with an aim to solve the marketing problem.
Market Research and Marketing Information System.
Market research is a systematic process of collecting data. It is an element of marketing research. It is the study of the markets which is undertaken to identify the size and the growth of the market and factors affecting the market.
Philip Kotler defines MIS as “A Marketing Information System consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers”. This information system helps managers to assess information needs, gather required information, and distribute information to marketing decision makers. It helps to integrate information that allows to access data whenever required and save cost.