importances of research in business
TRANSCRIPT
Research is a strategy that seeks to make basic discoveries and uncover new
principles or factors so far not unknown or unrecognized.
Or, Research is the systematic search for new knowledge.
A business research program is an increasingly popular way for companies to train
and educate their managers and other employees in a vast array of different fields.
Business research can pertain to economics, business strategy and ethics, in fact,
anything related to modern business and trade.
Research is an important element in business administration in many different
ways as follows;
Testing of new products. Business research tests the potential success of new
products. Companies must know what types of products and services customers
want before they market them. Market research will minimize risk - Market
research can help shape a new product or service, identifying what is needed and
ensure that the development of a product is highly focused towards demand.
Ensuring adequate distribution. Companies may also use business research to
ensure the adequate distribution of their products. For example, a consumer
products’ company may want to talk to retailers about all the different brands they
sell. The results of the business research will help marketing managers determine
where they need to increase their product distribution.
Measuring advertising effectiveness. Companies use business research to
determine the success of their advertising. For example, a milk manufacturer may
want to know what percentage of the population saw its most recent television
commercial. The milk company may find that more people become aware of its
advertising the longer the television ad runs. The milk company may need to run
its television advertisements at different times if few people have seen the
commercials.
Studying the competition. Companies often use business research to study key
competitors in their markets. Companies will often start with secondary research
information or information that is already available. For example, a software
company may want to know the percentage of customers in the market who
purchase its products versus competitors' products. The researchers can then study
the purchasing trends in the industry, striving to increase their company's share of
the market. Companies will often need to increase their market share in an industry
to increase sales and profits.
Research is an essential part of any business that wants to offer products or
services that are focused and well targeted. Business decisions that are based on
good intelligence and good market research can minimize risk and pay dividends
and by making market research part and parcel of the business process.
Research creates benchmarks and helps you measure your progress - Unless you
measure you may not be able to gauge how well your business is performing. Early
research may highlight glaring holes in your service or short falls in your product,
regular market research will show if improvements are being made and, if positive,
will help motivate a team.
Research will help you better communicate - Your current customers experiences
are a valuable information source, not only will they allow you to gauge how well
you currently meet their expectations they can also tell you where you are getting
things right and more importantly where you are getting things wrong.
Doing research in business management is vital as it helps a business plan for the
future, based on what may have happened in the past. If carried out successfully it
can help a company make informed plans on how to become more viable in its
sector. Some business experts agree that looking to the future of business is very
much about looking at the past. The two are interlinked and by carrying out
research you are more likely to see a positive outcome in your chosen objective. In
business, making ill informed decisions may be very precarious as there may be
too much money at risk or a company’s reputation may be put at stake.
Research is important in any business for it to stay competitive in the market. The
foremost function of research is to provide a business with an outlet to accurately
identify its customers. Through the surveys, a company can analyze the likes and
dislikes of its target consumers. In addition to this, these studies can also give a
business the opportunity to scrutinize its rivals in the industry and analyze and
emulate key strategies that might likewise help in its operations.
Research provides a business with a chance to update itself on the latest market
trends; such knowledge will prove helpful in the formulating of useful concepts
and tactics for success in the market. All things considered, it is through research
that a business is able to make educated and informed decisions.
Research helps the business to improve the productivity, lower the cost and save
time and retain expertise of their core competencies and this through research
discovery of new technology and development which leads to development of
innovation management system for future growth
Research helps to the business to continually revise their design and range the
product due to continuous technological changes and changing preference of
customers.
It also helps in the recruitment of employees. It’s through research that human
resource managers are able to identify and recruit skilled manpower. Proper
recruitment of employees with the right skills and attitudes helps the firm to
increase its productivity levels. Research for the right employees can be got via the
internet, consultancy firms and institutions of higher learning.
Research helps the firm to get the right supplier at the right price and at the right
time. A proper supplier selection enables the firm to get or acquire high quality raw
materials which result into production of high quality products that are consumed
by the end user. Also reliable and efficient suppliers help a firm to perform
effectively as supplies will be got in time. For example a diary industry such as
GBK dairy products company.
In conclusion, every organization needs to conduct research, and small budgets are
no excuse for lack of a research plan. By starting out with some easily accessible
resources, you can begin to develop better marketing strategies that can position
you for market growth
References
1. C.R KATHARI ‘Research methodology methods and techniques’, New age
international (p) limited publishers, 2nd edition.
2. Cohen, Wesley M. & Levin, Richard C., 1989 Handbook of Industrial
Organization, 1st edition.
3. PAUL HAGUE PETER JACKSON, (1999) Market research, British library
4. Internet.