[14] Managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs.
Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes.
[17] During the European age of discovery, industrial houses began to import exotic, luxury goods - calico cloth from India, porcelain, silk and tea from China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World.
During this period, Daniel Defoe, a London merchant, published information on trade and economic resources of England and Scotland.
However, the rise of mass-production following the industrial revolution, combined with improved transportation systems of the early 19th-century, led to the creation of national markets and ultimately, stimulated the need for more detailed information about customers, competitors, distribution systems, and market communications.
A study of the German book trade found examples of both product differentiation and market segmentation as early as the 1820s.
[21] From the 1880s, German toy manufacturers were producing models of tin toys for specific geographic markets; London omnibuses and ambulances destined for the British market; French postal delivery vans for Continental Europe and American locomotives intended for sale in America.
[29] In the first three decades of the 20th century, advertising agencies and marketing departments developed the basic techniques used in quantitative and qualitative research – survey methods, questionnaires, gallup polls etc.
As the Internet boomed, websites became larger and more complex and the possibility of two-way communication between businesses and their consumers became a reality.
[citation needed] In the new millennium, as the Internet continued to develop and websites became more interactive, data collection and analysis became more commonplace for those marketing research firms whose clients had a web presence.
[citation needed] Having access to web data did not automatically provide companies with the rationale behind the behavior of users visiting their sites, which provoked the marketing research industry to develop new and better ways of tracking, collecting and interpreting information.
These types of services allowed companies to dig deeper into the motivations of consumers, augmenting their insights and utilizing this data to drive market share.
[citation needed] As information around the world became more accessible, increased competition led companies to demand more of market researchers.
B2B and B2C companies are working hard to stay competitive and they now demand both quantitative (“What”) and qualitative (“Why?”) marketing research in order to better understand their target audience and the motivations behind customer behaviors.
[38] This demand is driving marketing researchers to develop new platforms for interactive, two-way communication between their firms and consumers.
Mobile devices such as Smart Phones are the best example of an emerging platform that enables businesses to connect with their customers throughout the entire buying process.
[citation needed] As personal mobile devices become more capable and widespread, the marketing research industry will look to further capitalize on this trend.
Mobile devices present the perfect channel for research firms to retrieve immediate impressions from buyers and to provide their clients with a holistic view of the consumers within their target markets, and beyond.
Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.
Also, researchers should always be objective with regard to the selection of information to be featured in reference texts because such literature should offer a comprehensive view on marketing.
Problem identification research is undertaken to help identify problems which are, perhaps, not apparent on the surface and yet exist or are likely to arise in the future like company image, market characteristics, sales analysis, short-range forecasting, long range forecasting, and business trends research.
The Stanford Research Institute, on the other hand, conducts an annual survey of consumers that is used to classify persons into homogeneous groups for segmentation purposes.
For example, procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established.
Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc.
If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected.
Finally they might do a full nationwide survey (quantitative research design) in order to devise specific recommendations for the client.
Validity refers to the extent to which a measure provides data that captures the meaning of the operationalized construct as defined in the study.
[44] The most common entry-level position in marketing research for people with bachelor's degrees (e.g., BBA) is as operational supervisor.
[44] A small number of business schools also offer a more specialized Master of Marketing Research (MMR) degree.
An MMR typically prepares students for a wide range of research methodologies and focuses on learning both in the classroom and the field.