The Importance of Market Research
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The Importance of Market ResearchJuly 13, 2015Adrianne BashamMKT/441Ronald StormIntroduction Research, for marketers, is more than just a tool for learning, it is a critical component needed to make good decisions. Market research does this by allowing the marketers to see a picture of what is occurring, likely to occur and when done appropriately, offers alternative choices that can be made (KnowThis, 2015). The purpose of this paper is to select an organization I am familiar with, define market research, identify the different types of marketing research and the importance of that research to my selected organization.Definition of Market Research Market research exists to guide business decisions by giving insight into the selected market, competitors, products, and consumers. Market research aids in the ability to make informed choices and in developing a successful marketing strategy (Marketing Donut, 2015). KnowThis uses an analogy of a house foundation; marketing research can be viewed as a foundation of marketing. Just as a well-built house requires a strong foundation to remain sturdy, marketing decision needs the support of research to be viewed favorably by customers and to stand up to competition and other external pressures. Consequently, all areas of marketing and all marketing decisions should be supported with some level of research (KnowThis, 2015).Credit Unions Credit unions are member-owned, not-for profit financial cooperatives that provide savings, credit, and other various financial services to their members. Credit Union membership is based on a common bond, a linkage shared by savers and borrowers who belong to a specific community, organization, religion or place of employment. Credit Unions pool their members’ savings deposit and shares to finance their own loan portfolios rather than rely on outside capital. Members benefit from higher returns on savings, lower rates on loans and fewer fees on average (World Council of Credit Unions, 2015).
Credit Unions worldwide offer members from all walks of life much more than financial services. They provide members the chance to own their own financial institution and help create opportunities such as starting small businesses, growing farms, building family homes and educating their children’s (World Council of Credit Unions, 2015). Regardless of account size in the credit union, each member may run for the volunteer board of directors and cast a vote in elections. In some countries, members encounter their first taste of democratic decision making through their credit unions (World Council of Credit Unions, 2015). A vast majority of credit unions are individualized to its specific geographical region, which will make each market different. Credit unions are limited to their market area with clearly defined geographical regions. This makes market research a great tool and a commonly used tool within credit unions. Primary research for credit unions involves surveys and focus groups. Through my years within a credit union, I have seen surveys used to research current members and non-members within our community. These surveys have varied from the appeal of products and services as well as the judgment of our brand and community presence. Since credit unions are member-owned, it is very important to ensure our members feel that we are meeting their needs. Credit Unions use focus groups to develop new products and services. Credit unions use employees as well as members to be in these focus groups. The goal is to bring in new members while keeping our current members. The average age of credit union members is not as low as credit unions would like to see, which makes the main focus of these groups to find an avenue to reach out to the younger generations. Being employed by a credit union, I was able to be on focus groups with other credit union employees as well as develop focus groups that consisted of members and non-members.