Quantitative marketing is the science of using empirical data obtained from research to understand markets and make better decisions. Quantitative marketing is a complex, but essential part of all marketing efforts. Below introduces quantitative marketing and why it’s so important.
Why Conduct Quantitative Marketing Research?
Quantitative marketing research normally provides the necessary data that is needed for important marketing tasks. For example, a marketing plan and SWOT analysis depend on hard data from quantitative marketing research. On the other hand, pricing, branding and product development strategies cannot be developed without quantitative marketing research. However, all quantitative marketing research involves five major components: problem definition, research design, data collection, data analysis and report conclusions.
How is Quantitative Marketing Conducted?
Quantitative marketing is typically performed through structured surveys and questionnaires with true or false and multiple-choice questions. Additionally, many questions request the consumer to measure or rank their feelings. For example, a customer service question would ask the consumer to rank their sense of satisfaction, starting with unsatisfied and ending with extremely satisfied. Traditionally, quantitative research was conducted in-person or through postal or phone surveys. However, the digital revolution has resulted in most companies relying on online platforms to complete their research. For example, Internet commerce giant Amazon offers their popular Mechanical Turk website where businesses can post marketing surveys. Registered users are paid a nominal payment for completing the timed surveys.
What are Common Quantitative Marketing Objectives?
Quantitative marketing objective must be specific and measurable in order to be of any use. Increasing sales is the most common quantitative marketing objective. For example, the goal could be to increase sales by 10 percent within six months. Conversely, expanding the current market share is another popular objective because this is vital to business growth. Competitive research and data analytics will provide the crucial data to reach this goal. Introducing a new product or service is also common because companies can only remain competitive through innovation. However, this is a laborious process that will involve different departments. Finally, increasing customer satisfaction or retention is a continual goal of many companies. This often is accomplished through customer satisfaction surveys. Online shopping and social media mean that more objectives are being researched and accomplished through digital platforms and data analytics.
What are the Differences Between Quantitative and Qualitative Research?
Quantitative research is based on controlled numerical measurements of market features. For example, market segmentation, distribution levels and brand shares and awareness. Quantitative research is conducted on a state or national level through massive online surveys and research campaigns. Data accuracy and proper statistical analysis methodologies are a must. On the contrary, qualitative research is focused on holistically understanding customers and markets. That is, qualitative market objectives tend to ask open ended questions, such as why a certain product or service bests meet the customer’s needs. Qualitative research tends to focus on different aspects of consumer behavior. For example, brand attachment or consumer motivation. In addition to this, qualitative research is typically conducted among smaller sample group in order to understand specific demographics. In the end, qualitative research can identify problems, while quantitative research provides factual data in order to make better decisions.
Related Resource: Promotional Marketing
In short, quantitative marketing is the science of research and understanding consumers and markets. Companies that fail to utilize quantitative marketing will struggle to remain profitable and competitive. Inc. Magazine offers a step-by-step guide to quantitative marketing research.
