1. Author: José Luis García Fuentes
Theme: Vicepresidente de Nielsen para España y Portugal
Article Title: The Motives Behind Market Research
In the business world and more specifically, in the areas of sales and marketing, we are forced
almost daily to make decisions regarding our trademarks and / or products. The
appropriateness of these decisions will have a direct impact on the results obtained by any
organisation. It is therefore essential, or at least highly recommended to minimise the
uncertainty associated with all decision‐making processes.
To put it short, this is the ultimate goal and reason for Market Research, making information
available to companies or organisations to help them reduce uncertainty in their decision
making as much as possible. It is a tool that helps us when we need to devise strategies, define
medium / long term tactics or elaboate specific action plans to improve the competitive
positioning of our products.
In 1923, Arthur C. Nielsen, an electronic engineer from Chicago (USA), laid the foundations of
what we know today as Market Research. One of his most important contributions was to
establish the concept of market share. He taught us that a company should measure their
behaviour not only based on internal indicators (turnover, growth, cash flow, profit, etc.), but
on everything, knowing which part of the businessgenerated by other companies with an
activity similar to ours (the reference market) is absorbed by our brands or products.
And this measurement should be provided consistently over time. A revolutionary technique
was created at that time and he called it the Panel of Retailers. To provide this service of
consumer products to manufacturers, he founded a company that has survived to become the
world leader in the field of Market Research.
But what is a Panel? It involves taking regular information from a sample (of establishments,
consumers, etc..) which is then extrapolated to a referenceuniverse. This sample is kept
constant over time so that the changes that occur in the data collected from it are a reflection
of the changes in the universe and not due to changes related to modifications in the selected
sample.
www.globalmarketingcompetition.com Síguenos en:

2. Samples, extrapolation ... terms that lead us to another key element in Market Research:
Statistics, a branch of mathematics which, among other things focuses on how to draw
conclusions on all aspects with information collected from only one part. Nobody can escape
the fact that it would be physically impossible to interview all consumers of a brand or collect
information from all establishments that sell a product. Furthermore, it would be economically
unfeasible. Therefore, market research would not be possible if you didn’t count on statistics
as an implementation tool. Just to give an idea of their importance, within The Nielsen
Company there are currently more than 800 statisticians with degrees working in various areas
of our business.
Furthermore, Statistical Research has allowed the market to develop in the field of modeling.
This can predict future behaviour based on experimental data available and useful results in
areas such as launching new products, changes in the marketing mix, design of promotional
plans, etc.
But market research is not only a quantitative technique (themes, surveys, observations, etc.)..
It is also an importantqualitative technique that uses methods of psychology and sociology to
explore the ultimate reasons that can explain the behaviour and attitudes of consumers. In this
field the Focus Group is especially useful.
A good design methodology is a necessary condition to successfully conduct a research project,
but it is certainly not a sufficient condition. Once the data is collected, either through
quantitative or qualitative methods, we need to transform it into information that is
understandable, relevant and aimed at meeting the objectives that led to its implementation.
This is ultimately, as we said at first, to make the information available to companies or
organisations that will help them minimise risks when they make decisions that affect their
brands or products.
Lastly, I encourage you to use market research to successfully complete an experience as
exciting as the Business Marketing Competition.
www.globalmarketingcompetition.com Síguenos en: