Market Research v Marketing Research

Increased sales for less cost is fast becoming a business mantra. For any enterprise there is nothing more important than knowing precisely why people buy into what you have to offer. In this competitive marketplace research budgets are often first to go in an attempt to save money. However some types of research have been proven to dramatically increase sales.

Market research is the systematic gathering and interpretation of knowledge using analytical methods and techniques to gain insight or support decision making. Market Research is actually any organized effort to gain information about competitors, markets or customers and in the past has been an important element of company strategy.

Yet, the phrase is often, and wrongly, confused with the practice of Marketing Research or Research for Marketing but, there is an important and distinct difference between the two. Marketing research is the objective gathering and interpretation of data using analytical methods and techniques to gain insight and intelligence about audience buying habits.

Can you appreciate the difference? - Market research gathers intelligence on potential markets, marketing research gathers information on why they buy and who from.

The main objective of Marketing Research is to identify the purchase triggers of those markets. In short it is the science of understanding how and why customers and potential customers respond, or not, to your marketing communications. Marketing Research, when done correctly should tell you precisely how to push the buttons that will drive more people respond to your message or proposition. And it will give you that information simply, quickly and cost effectively.

Perhaps that is why, more and more companies are moving away from the 'soft' data provided by market research and are moving towards the 'hard' data provided by marketing research. In this context, information is generally defined as 'hard' when it provides specific, detailed and quantifiable guidance for future advertising campaigns. Because it is measurable and can directly influence bottom line profitability has caused this type of research to be described as "research for a new business age" by marketing professionals and that "traditional methods may produce findings that are interesting - however who these days has the time and budgets unless there is a quantifiable purpose and payback?"

Whilst some organisations allege to offer bespoke marketing research, in truth, some are simply variations of their usual research offering. These rarely provide knowledge that could be used to direct and evaluate marketing campaigns. For example, if your research company suggest focus groups as part of a marketing research project as that is usually an indication that they have just adapted their usual offering to fit.

The best marketing research techniques use research processes that are adapted from behavioural psychology to gain insights into your audience that are immediately useable, useful and designed to repay your need for improved results.

So which type of research would increase your turnover?

If you feel you have an understanding of who your customers are; their demographics, how old they are, how much disposable income they have, their lifestyle, etc, then you probably don't need to spend money on market research. Yet if you want your advertising and marketing to increase inquiries and sales then you are more likely to find marketing research more profitable.

Whichever route you decide to take, ensure that you act upon the knowledge you receive as, in these troubled times, it could make or break your enterprise.

Jim Brackin is Director of Insight at EspConsultancy.co.uk the marketing research specialists. A free report is available on how market research can dramatically improve response rates.