Right and accurate information plays a key role in the marketing and managerial decisions of an automotive industry. Consumers today are very choosy and they make buying decisions only when they are 100% convinced with the product. A well designed marketing research methodology helps automobile manufacturing industries to gather right information about the new trends and changing consumer behavior.
Marketing research defined
As simply defined, marketing research is the use of various scientific methods in finding the truth regarding diverse marketing phenomena. Automobile manufacturers conduct automotive marketing research mainly to make intelligent and informed marketing and manufacturing strategies and decisions. Firms who conduct marketing research need to design a research strategy that incorporates the following.
- Defining marketing problems and opportunities
- Generating and evaluating marketing ideas
- Monitoring performance
- Understanding and identifying the marketing processes
As everybody believes, automotive marketing research is not just a survey, but involves a comprehensive study and understanding of various marketing tactics. Before a firm indulging in a marketing research, it is important for them to acquire a clear idea about what they sell, consumer’s view about the company and the desires of consumers.
There are some constraints that prevent automotive industries to conduct a comprehensive marketing research. They are:
Time constraints – Many firms directly formulate marketing and manufacturing strategies and decisions without conducting market research. They involve in the direct decision making as they find systematic research consumes lots of time to complete. Many of the manufactures create design and manufacture products and other automotive parts by sticking to strict time schedule. This prevents many firms to skip the comprehensive marketing research.
Availability of data – Firms will not conduct marketing research if they have enough data and information to formulate strategic decisions. In this case, the management of those organizations will not spend more time and money to conduct marketing studies. In fact, they start the design and manufacturing process by using the available information.
Nature of the decision – When a company makes minor modifications in their product line, it is required to make necessary changes in the instructional manual as well. Sometimes, the cost for making minor product modification is greater than conducting market research to update instruction manual. In this case, management usually will not indulge in marketing studies. Hence, nature of the management decision also plays an important role in conducting or skipping market research
Benefits Vs Costs – Automotive marketing research offers many benefits to a manufacturing firm when it markets a product. At the same time, the process requires huge expenditure of money. Companies sometimes make strategic decisions without conducting marketing research or postpone the same thinking of the huge cost involved in the process.