EVALUATE THE IMPORTANCE QUESTION

Evaluate the importance of the market research for Sony (12)

Market research is identifying and satisfying customers’ needs and wants. It involves gathering,
presenting, and analyzing information relevant for marketing decisions.

On the one hand, market research is very important and helps to identify and satisfy customers’
needs. Sony can be more successful if it supplies products that meet customers’ needs. Thus,
when developing a new gaming console, Sony should identify product features important for
potential customers i.e. modern design and style, graphics quality, durability, portability and
flexibility. Once this data is gathered, a business can design a product that meets specific
customers’ needs. Therefore, more customers will buy this new console, which will boost the
revenue and the profit of Sony. As a result, the company may get a stronger foothold in the
market or even increase its market share. However, this may only provide accurate information
about customer’s needs if the results of the market research are accurate ones.

Also, market research is a useful leverage to inform business decisions. Businesses have to make
lots of decisions, and the quality of decision-making can be improved if managers have access to
meaningful information. Market research can provide information for improving decision-
making i.e. setting the correct price or finding the location (place). However, some managers
may try to manipulate the results of the market research to promote their vested interests.

On the other hand, market research may be biased and not representative due to poor research
techniques. When the sampling is not representative i.e. the preferences of the interviewees do
not represent the preferences of the whole market segment, the results may mislead the managers
and cause wrong decisions. For example, Sony will launch products desired by the sampling
group but not popular among the whole market segment. Moreover, human behaviour is
changeable and unpredictable. Interviewees may answer inn one way but behave differently or
have a change of heart later on. However, engaging highly-professional employees may help to
solve this problem.

To conclude, market research is crucial for big businesses like Sony since when customers are
not satisfied, they may switch to the competitors. However, it depends on the representative
sample and well-worded questions. Otherwise, research is a waste of money and may even bring
harm to business.