The Process of Marketing Research

The market research process involves several key steps:

Consumer Analysis

Since all marketing plans should begin with a look at the all-important consumer, the first step is to conduct consumer analysis. Consumer analyses identify segments or groups of consumers that have similar needs so that marketing efforts can be directly targeted at them.

Market Analysis

The second step is to carry out a market analysis. Market analyses look at the broader view of potential consumers that could be included in the market location, size and trends:

Competition analyses – These are conducted to ascertain your position as a supplier, relative to that of your competition.

Distribution Channels – Once you know where you stand in the market, you need to analyse available distribution channels and networks. The efficacy of the distribution network influences the price you can charge, whilst still making a profit.

• Marketing Mix – This is followed by the development of the marketing mix that includes the well-documented five P’s of marketing, being:
• Product
• Place
• Price
• Promotion
• People

Financial Analysis – Lastly, the financial analysis of the marketing plan is compiled.

Click here to view a video about the process of market analysis.

Resources Required For Market Research

Market research is expensive because it requires the services of dedicated specialists. It is too expensive and impractical for every farmer to do his own market research. In the case of fresh fruit exports, the budget for carrying out such a full market analysis can run into hundreds of thousands of Rands. Farmers can form farmer groups together with exporters and jointly fund such analyses or decide to carry out only parts of the total process. This would depend on the specific objectives of the research programme. Where a grower’s association exists, the farmer can join such association and reap the benefits of market research and access services provided by the association. Normally, the growers’ association and its activities are funded through a levy that is charged on the produce sold or exported.

In most cases where an individual farmer is faced with planting decisions based on marketing prospects, he will consult colleagues, technical experts, exporting companies and market agents. In this way, he can build up enough general information to guide his decision without incurring the cost of hiring marketing professionals.

Where investment in the opening of new production areas or the launch of a new cultivar is contemplated, the market research process, whether it involves a group effort or even a relatively small-scale investigation, may require the services of specialists, either as those within an established grower association or as consultants.

Managing Market Research

Market research must be managed, meaning that each stage must be carefully planned, with appropriate target dates and milestones put in place. Out-sourced services can be costly and careful budgeting must be applied to every phase of the marketing plan. It must also be carefully decided which aspects to include and which to leave out of the process.

Once market research has been completed and a marketing plan has been developed, the recommendations of the plan must be followed. Implementation does not only refer to basing decisions for new plantings on the results of the market research but also implies the adjustment of ongoing production practices to agree with the requirements of the market.

Click here to view a video about market research for farm products.