Importance of Marketing Research
Companies use marketing research to identify problems or opportunities that they might encounter. Organizations may also use marketing research to identify their strengths and weaknesses, and certain trends that are forming in their market. H&R Block is a tax service company that prepares state and federal taxes for individual customers and small to mid-size companies (H&R Block, 2010). This company has defined their marketing research and has different types of marketing research techniques it uses. Furthermore, there are other types of H&R Block’s marketing research techniques that would be beneficial to if they were implemented correctly.
Definition of Marketing Research
Marketing research can be defined as the “planning, collection, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management” (McDaniel & Gates, 2006, p. 7). H&R Block uses marketing research to find how well their customers enjoy their services and how they can acquire more clients. They use marketing research to find out how much their competitors are saving their clients from their tax returns and then compare the statistics. H&R Block then presents that data to future clients by promoting through television advertisements and local, face-to-face interaction, specifically during tax season. H&R Block has conducted marketing research in the South Austin, Texas area and found that a large demographic is Hispanic. The company later developed marketing campaigns that would cater to a new Spanish speaking cliental.
There are three functioning roles that marketing research has: descriptive, diagnostic, and predictive (McDaniel & Gates, p. 7, 2006). The descriptive function revolves around gathering and presenting facts about customer attitude, products, and sales trends. After the information is gathered, then the diagnostic function can take place by explaining what the data or actions mean. The last role of marketing research is the predictive function. During this function, companies try to foreshadow the best opportunities as the market changes (McDaniel & Gates, p. 7, 2006).
Types of Marketing Research Used
H&R Block defines their marketing research in the South Austin, Texas district as identifying a demographic that could have potential customer retention. H&R Block promoted their tax services to Hispanics in the South Austin region by presenting face-to-face advertisements in front of widely used grocery stores called HEB and Fiesta. They researched where the greatest opportunity was for them to acquire new clients. In this case, the demographic was lower income Hispanic families in South Austin, Texas. They chose to present their services in front of HEB and Fiesta stores because they found that lower income families shop there very frequently. The company conducted surveys to potential clients about what they have received from their...