Importances of research in business


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Research methods 2012

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Importances of research in business

  1. 1. Research is a strategy that seeks to make basic discoveries and uncover newprinciples 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 trainand 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 differentways as follows;Testing of new products. Business research tests the potential success of newproducts. Companies must know what types of products and services customerswant before they market them. Market research will minimize risk - Marketresearch can help shape a new product or service, identifying what is needed andensure that the development of a product is highly focused towards demand.Ensuring adequate distribution. Companies may also use business research toensure the adequate distribution of their products. For example, a consumerproducts’ company may want to talk to retailers about all the different brands theysell. The results of the business research will help marketing managers determinewhere they need to increase their product distribution.Measuring advertising effectiveness. Companies use business research todetermine the success of their advertising. For example, a milk manufacturer maywant to know what percentage of the population saw its most recent televisioncommercial. The milk company may find that more people become aware of itsadvertising the longer the television ad runs. The milk company may need to run
  2. 2. its television advertisements at different times if few people have seen thecommercials.Studying the competition. Companies often use business research to study keycompetitors in their markets. Companies will often start with secondary researchinformation or information that is already available. For example, a softwarecompany may want to know the percentage of customers in the market whopurchase its products versus competitors products. The researchers can then studythe purchasing trends in the industry, striving to increase their companys share ofthe market. Companies will often need to increase their market share in an industryto increase sales and profits.Research is an essential part of any business that wants to offer products orservices that are focused and well targeted. Business decisions that are based ongood intelligence and good market research can minimize risk and pay dividendsand by making market research part and parcel of the business process.Research creates benchmarks and helps you measure your progress - Unless youmeasure you may not be able to gauge how well your business is performing. Earlyresearch 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 experiencesare a valuable information source, not only will they allow you to gauge how wellyou currently meet their expectations they can also tell you where you are gettingthings right and more importantly where you are getting things wrong.
  3. 3. Doing research in business management is vital as it helps a business plan for thefuture, based on what may have happened in the past. If carried out successfully itcan help a company make informed plans on how to become more viable in itssector. Some business experts agree that looking to the future of business is verymuch about looking at the past. The two are interlinked and by carrying outresearch you are more likely to see a positive outcome in your chosen objective. Inbusiness, making ill informed decisions may be very precarious as there may betoo 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. Theforemost function of research is to provide a business with an outlet to accuratelyidentify its customers. Through the surveys, a company can analyze the likes anddislikes of its target consumers. In addition to this, these studies can also give abusiness the opportunity to scrutinize its rivals in the industry and analyze andemulate key strategies that might likewise help in its operations.Research provides a business with a chance to update itself on the latest markettrends; such knowledge will prove helpful in the formulating of useful conceptsand tactics for success in the market. All things considered, it is through researchthat a business is able to make educated and informed decisions.Research helps the business to improve the productivity, lower the cost and savetime and retain expertise of their core competencies and this through researchdiscovery of new technology and development which leads to development ofinnovation management system for future growthResearch helps to the business to continually revise their design and range theproduct due to continuous technological changes and changing preference ofcustomers.
  4. 4. It also helps in the recruitment of employees. It’s through research that humanresource managers are able to identify and recruit skilled manpower. Properrecruitment of employees with the right skills and attitudes helps the firm toincrease its productivity levels. Research for the right employees can be got via theinternet, consultancy firms and institutions of higher learning.Research helps the firm to get the right supplier at the right price and at the righttime. A proper supplier selection enables the firm to get or acquire high quality rawmaterials which result into production of high quality products that are consumedby the end user. Also reliable and efficient suppliers help a firm to performeffectively as supplies will be got in time. For example a diary industry such asGBK dairy products company.In conclusion, every organization needs to conduct research, and small budgets areno excuse for lack of a research plan. By starting out with some easily accessibleresources, you can begin to develop better marketing strategies that can positionyou for market growth
  5. 5. References1. 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 library4. Internet.