Industrial marketing research is conducted to understand the industrial customer’s point of view. It can be performed before, during, or after the development of produced goods. Marketing research can be run on a small or large scale, depending on the business’s willingness to collect detailed data. So, let’s start with the first question; what is industrial marketing research?
Definition of industrial marketing research
Industrial marketing research (De: marktforschung, Fr: recherche en marketing) is defined as a systematic and objective process of acquiring, evaluating, and analyzing data or information for decision-making in industrial marketing. The industrial marketing researcher creates the research design, which outlines the method, associated costs and marketing topics for research.
Marketing research is a concept that is frequently used in contemporary marketing management. It serves as a tool for making informed marketing decisions about products and services.
Additionally, industrial marketing research is beneficial for understanding and rationally resolving various marketing challenges. It is a field of marketing management that is distinct from traditional marketing. Its origins are somewhat recent, and it’s used as the marketing manager’s investigative arm.
Understanding your target market is a fundamental element in efficient B2B marketing. Companies may promote and sell their products more effectively if they have a solid grasp on their customers' specific problems, business requirements, objectives, limits, and worries.
The objective of industrial marketing research
Industrial marketing research is a systematic, well-planned process that requires planning at every level. It presents potential marketing solutions for a marketing manager’s consideration and decision. It is an objective science-based process that seeks to deliver accurate and factual information.
Characteristics of industrial marketing have been developed with the use of scientific methods to solve challenges. It’s critical in determining customer demands and meeting them optimally. The primary duty is to collect and analyze data systematically and methodically.
Industrial marketing research is the methodical examination of problems, the development of models, and the gathering of facts to make critical decisions and manage the marketing of goods and services.
System of marketing research
The primary objective of industrial marketing research is to collect and analyze data in a systematic manner — a collection of defined techniques for continuously creating, evaluating, storing, and disseminating information to marketing decision-makers.
Therefore, marketing research is critical for market planning and decision-making on a strategic level. Also, It assists a business in determining market opportunities and limits, design and implement the industrial marketing strategy, and assess the performance of marketing plans.
Benefits of industrial marketing research
Marketing research is a widely used B2B marketing strategy. Sellers seek to understand better their final customers yet are typically geographically distanced from them. Therefore, this is an essential link between marketing decision-makers and their markets.
B2B marketing research incorporates several critical principles to create knowledge that is beneficial to managers. These principles pertain to the timeliness and significance of data, the implications of cautiously and clearly stated objectives, and the necessity of avoiding undertaking research to support already-made judgments.
The primary advantages of industrial marketing research
- Through information utilized to identify and define marketing, industrial seller companies are connected to the market
- Develops, updates, and assesses marketing strategies
- Monitors the effectiveness of marketing campaigns
- Emphasizes the concept of industrial marketing as a process
The importance of industrial marketing research is expanding due to increased competition, rapid technical advancements, and changing industrial customers’ expectations and attitudes.
The crucial importance of marketing research
B2B marketing research is a method of discovering information about your target market by obtaining accurate information from customers who participate in it. Some participants might include past customers, current customers, or those who want to become customers.
Others might be lost prospects who now purchase elsewhere, while still others may be influencers in the market. Additionally, in a competitive industrial market, research may involve both existing and potential customers.
1. Marketing plan’s development and execution:
Due to the rules provided by the industrial marketing research, a business unit may plan and execute all actions, from manufacturing to functions of management, with fair precision and confidence.
2. Decision-making speed and accuracy
Marketing managers benefit from marketing research since it enables them to make rapid and informed decisions. In addition, it allows marketing executives to run the process of management quickly and accurately.
3. Effective marketing solutions
Industrial marketing research provides excellent marketing solutions. We can say that it’s the radiography and pathology of a business’s marketing operations. Industrial marketing research identifies business problems and makes suggestions for resolving them. The marketing researcher takes on the role of a business physician, prescribing treatments for company aspects.
4. Marketing research costs
Large B2B sales corporations invest large amounts of money in marketing research. Accurate research activities are conducted by applying innovative techniques and procedures that demonstrate the increasing importance of marketing research.
Scope of industrial marketing research
1. Advertisement research
Advertising research is the study of a product’s advertising campaign. First, advertising research establishes the goals and arranges the budget. Then, it determines the advertising message, layout, copy, slogan, and headline, among other things. Finally, the research results choose an appropriate medium for advertising while assessing the effectiveness of advertising and other forms of sales promotion.
2. Sales research
Sales research is the study of a company’s B2B selling activity. This type of industrial marketing research investigates sales points, sales territory, forecasting, trends, tactics, and sales force effectiveness.
3. Distribution research
Distribution research focuses on the B2B distribution channels. It determines the most appropriate channel for industrial products. Also, it establishes the channel’s goals and denotes the channel’s functions, such as storage and grading.
Industrial marketing research data
One of the main objectives of conducting marketing research is to obtain an industrial market analysis summary. Therefore, the research process is typically divided into two stages: data collecting and analysis.
Let us begin by collecting data. There are two basic techniques to data collection:
Researchers conduct direct interviews with individuals to elicit their comments and views on your business, product, or other parts of the industrial market. Because it involves spoken communication, it takes longer and requires more work to do and analyze.
The advantage of qualitative research is its ability to explore deeper topics using open-ended questions and dig further as you learn about new topics. Telephone interviews, in-person interviews, and focus group interviews are the most popular marketing data sources for conducting qualitative research in enterprises.
While qualitative research provides an in-depth examination of a limited sample size, the quantitative research draws its strength from volume. The researcher asks an identical set of questions to everyone using a standard survey form. These are unbranched questions, while branching questions, the response that decides the next question, are also options.
While open-ended questions are undoubtedly conceivable in quantitative marketing research, they are rarely employed to facilitate analyzing vast amounts of data.
Quantitative research’s more rigid structure lends itself to various formats, including online, postal, and telephone surveys.
So, which one to use?
Which type of industrial marketing research is preferable, qualitative or quantitative? In reality, there is no correct or incorrect response. Each has a distinct function. As a result, quantitative research is beneficial for determining what is going on in the industry, and qualitative research is useful for determining why. When you think about the importance of market analysis, both two research methods are significant.
Qualitative research is very adaptable and produces a wealth of data. Quantitative marketing research is highly systematic, which facilitates identifying trends and drawing definitive conclusions from the data.
However, due to the time and expense needed in doing qualitative industrial marketing research, it frequently uses a small sample size, trading some statistical certainty favouring a more in-depth look at the subjects.
The process of determining a valuable customer to interview can be challenging, and typically only a small percentage of those individuals will be willing or accessible to participate in the study. Qualitative research, on either hand, can frequently reach a considerably wider audience, resulting in a conclusion that is statistically more reflective of the group being studied.
Certain industrial marketing research studies combine quantitative and qualitative data collection. This allows them to develop a full picture of the consumers they are studying.