Marketing: Its Importance, Objectives, Market Research, Research Methodologies, and Strategic Analysis Frameworks

By Ahmad Fuad
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Introduction
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Marketing is one of the core pillars of any business, acting as the crucial link between a company and its customers. More than just advertising or sales, it is a strategic process that helps businesses understand and meet customer needs profitably and sustainably. By aligning with other departments, marketing drives value creation, brand growth, and informed decision-making. This blog explores the key concepts, objectives, and importance of marketing, as well as the role of market research, environmental analysis, and cross-department collaboration in achieving business success.

One of the most significant pillars of any company is marketing. But what exactly is it? Definitions vary: The Chartered Institute of Marketing (CIM, 2001) defines it as “the management process responsible for identifying, anticipating, and satisfying customer requirements profitably” (Brassington and Pettitt, 2013).

​The American Marketing Association (AMA, 2007) provides a broader perspective, describing marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Brassington and Pettitt, 2013).

At its core, marketing is the bridge between a company and its customers, and when utilized effectively, it is a powerful tool that enables a company to achieve its goals through coordination and collaboration with other departments.

Why Marketing Truly Matters

The importance of marketing becomes clear when we look at successful global companies. For instance, in 2016, Samsung spent 11.5 trillion won (approximately $10 billion) on marketing its brand and products to consumers worldwide (Rutnik, 2017). This massive investment underscores a simple truth: marketing truly matters.

For most businesses, it is essential for operating in a competitive market, especially for small and newly established companies. There are several ways to reach clients and maintain long-term relationships, including traditional and non-traditional advertising, word of mouth, and by deeply understanding customer preferences and needs.

​Marketing can also present a company’s product in a more appealing way, thereby attracting a large number of potential customers (Berman, 2017). However, some notable exceptions, like Tesla, Rolls-Royce, Krispy Kreme, and Zara, do not rely on traditional advertising.

Customers purchase from these brands primarily because of the quality of their products and services, relying on a strong reputation, consistent service, and a compelling brand story (Comer, 2016). The key to their success still lies in a deep understanding of customer needs and behavior (Brassington and Pettitt, 2013).

Nevertheless, this "no-marketing" approach is a high-risk strategy and is unlikely to work for small or new companies. For example, in the crowded smartphone industry, a new entrant cannot gain visibility without actively marketing its products.

Without effective marketing, organizations must rely solely on the quality of their products and word-of-mouth, which alone is insufficient for sustainable growth and long-term success.

The Core Objectives of the Marketing Process

Marketing serves several key objectives that contribute directly to business success:

Building Brand Awareness:  A company can achieve this by forming partnerships with other brands, as collaboration is an effective strategy for enhancing recognition. Partnering with well-known companies makes a business more visible and trusted in the market (Toner, 2017).

Achieving Customer Satisfaction: Strengthening relationships with customers and understanding their preferences are essential. Successful companies develop products that align with customers’ needs, wants, desires, and expectations. For example, when a salesperson understands what a customer truly requires, they can recommend the most suitable product (Hill, n.d.).

Driving Growth: Ultimately, marketing is a vital tool that helps a company increase sales, expand market share, attract new clients, and reinforce existing customer relationships. Therefore, it plays an essential role in achieving a company’s overall vision, goals, and objectives.

The Engine of Insight: Conducting Market Research

To achieve these objectives, a company must first understand its market, customers, and competitors. This is where market research comes in. It is important to understand how market research is conducted, as specific steps must be followed to ensure the process is effective.

Choosing Your Method: Quantitative vs. Qualitative

Quantitative and qualitative methods represent two distinct approaches. Neither is inherently better; each is effective when applied appropriately to the research question.

Qualitative research seeks a deeper understanding of a specific case. The data collected are often descriptive, personal, and field-based, gathered through interviews, detailed surveys, or focus groups. Its main goal is to gather subjective viewpoints and insights.

Quantitative research focuses on objectivity and obtaining a broad view of outcomes. It is primarily concerned with numerical data, generally involves a large sample size, and uses structured questionnaires. The findings are expressed numerically, allowing a business to generate statistics and make predictions (DeVault, 2019).

In conclusion, the choice of research method should depend on the nature of the research question, as each has unique advantages and limitations.

The Reasons and Benefits of Market Research

Understanding the "how" leads directly to the "why." There are several compelling reasons why companies conduct market research:

Understanding Customer Needs: It enables a company to identify and understand customer needs and preferences through customer profiling (e.g., location, gender, income, age). This helps tailor products, design successful campaigns, and select suitable business locations.

Analyzing Competitors: It allows a company to monitor its competitors, anticipate their responses, and identify weaknesses in their strategies to leverage for competitive advantage. As Medium (2017) emphasizes, having a deep knowledge of the competition is critical to a company’s success.

In conclusion, market research supports informed decision-making, enhances competitiveness, and contributes to the long-term success of an organization.

The Market Research Process:

• Identify the Business Problem: Define the core issue, along with the goals and objectives for the research, to guide informed decision-making.
• Determine the Research Design: Choose the type of research to conduct, deciding between primary methods (observations, experiments, focus groups, interviews, surveys) or secondary research.
• Design the Research Tools: Develop the specific instruments for data collection, such as discussion guides for focus groups or well-structured questionnaires for surveys.
• Collect and Record the Data: Execute the plan by gathering the information using the designed tools.
• Analyze the Gathered Data: Process the collected data to identify key patterns, trends, and insights.
• Present the Results and Recommendations: Structure the final report by restating the initial problem, presenting the findings, and concluding with actionable recommendations (My Market Research Methods, 2011).

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The Impact of Competition on Marketing Strategy

Competition is one of the most significant factors influencing marketing strategy. When a new company enters the market, it must understand how to respond to its competitors. If a company understands what its consumers want and responds to their needs more effectively and efficiently than its rivals, it gains a strong advantage. Therefore, to remain competitive, a company must ensure that its primary focus is on its customers.

Thorough market research is essential to avoid wasting resources. A company should identify the strengths and weaknesses of its competitors and understand how they meet customer needs. Researching competitors can be straightforward; a company can collect promotional materials, review online content, or purchase competitors' products. Conducting a SWOT analysis is also an effective method to evaluate a company’s position relative to its competitors (Business Queensland, 2017).

Navigating the External Environment: STEEPLE Analysis

Businesses are influenced by both internal and external environmental factors. While a company can control internal factors, it has limited control over external ones. An effective marketing strategy depends on the marketing manager’s ability to understand this broader environment.

External Environmental Factors
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STEEPLE is a framework used to analyze these macro-environmental factors. It examines broader influences than a SWOT analysis, represented by Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors (MBA Skool, n.d.).

Benefits of STEEPLE Analysis:

It enables businesses to identify new opportunities, anticipate potential threats, recognize external changes, and provides valuable insights for strategic planning. It can also prevent businesses from initiating projects that might fail due to uncontrollable external conditions (Mindtools, n.d.).

Limitations of STEEPLE Analysis:

Although valuable, it cannot predict rapid or unexpected changes. For instance, sudden government regulations or technological advancements can quickly make existing strategies obsolete (Frue, 2018).

STEEPLE is a strategic planning tool used to analyze the key external macro-environmental factors that can influence an organization. It provides a comprehensive overview of the opportunities and threats existing in the broader landscape. Understanding each component is crucial for any business developing a robust marketing or business strategy.

Here is a definition for each factor:

S - Social: This refers to the demographic and cultural aspects of the external environment. It includes factors such as population growth rate, age distribution, career attitudes, health consciousness, cultural trends, lifestyle changes, levels of education, and shifts in consumer values and beliefs. Understanding social factors helps a company tailor its products, marketing messages, and overall strategy to align with societal norms and the needs of its target audience.

T - Technological: This encompasses the forces that create new technologies, new products, and innovation. It includes factors like research and development (R&D) activity, automation, technological incentives, the rate of technological change, and the evolution of digital platforms. A company must monitor technological factors to stay competitive, avoid obsolescence, and leverage new tools for production, marketing, and distribution.

E - Economic: This involves the economic conditions and performance that affect a company's purchasing power, profitability, and cost structure. Key factors include economic growth, interest rates, exchange rates, inflation rates, disposable income, unemployment rates, and the overall business cycle (boom or recession). Economic factors directly influence demand for a company's products and services.

E - Environmental: Also known as "Ecological," this factor deals with the physical environment and the constraints and opportunities it presents. It includes weather, climate, climate change, environmental policies, laws on waste disposal and recycling, energy consumption regulations, and the growing pressure for corporate sustainability. Companies are increasingly expected to operate in an environmentally responsible manner.

P - Political: This refers to the extent to which a government influences an economy and a specific industry. It includes factors such as government stability, tax policy, trade tariffs and restrictions, labor law, environmental law, and foreign trade agreements. Political decisions can create both stability and risk, significantly impacting how a company operates.

L - Legal: This component focuses on the laws and regulations with which a company must comply. It includes consumer protection laws, employment law, health and safety regulations, antitrust laws, and industry-specific regulations. While closely related to the political factor, the legal factor specifically deals with the current legal framework and any upcoming changes in legislation.

 E - Ethical: This pertains to the moral principles and standards that guide behavior within a society. It includes issues like corporate social responsibility (CSR), ethical sourcing and supply chain management (e.g., fair trade), data protection and privacy, and transparency in advertising. While not always encoded in law, ethical factors are critical for maintaining a company's reputation and social license to operate.
 
Internal Environmental Factors.

By systematically evaluating these seven areas, a business can anticipate challenges, spot new opportunities, and develop strategies that are resilient in the face of external change.

SWOT Analysis is a strategic planning framework used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. It provides a clear, structured overview of the internal and external factors that are crucial for strategic decision-making.

The framework is divided into two primary dimensions:

Internal Factors (Strengths and Weaknesses): These are attributes within the organization's control.

External Factors (Opportunities and Threats): These are conditions outside the organization in the wider market and macro-environment.

Benefits of SWOT Analysis:

It provides a simple, structured overview of a company's strategic position, promotes strategic thinking, encourages collaboration, and helps identify core strengths to leverage and critical weaknesses to address.

Limitations of SWOT Analysis:

It can be overly simplistic and subjective, lacks built-in prioritization of factors, and offers no guidance for actionable strategies. It also represents a static snapshot that may quickly become outdated in a dynamic business environment.

Here is a detailed breakdown of each component:

S - Strengths
These are the positive internal attributes and resources that give a company an advantage over its competitors. They are what the organization does well.

Examples: Strong brand reputation, loyal customer base, proprietary technology, skilled workforce, unique product features, efficient supply chain, strong financial position.

Key Question: "What advantages do we have? What do we do better than anyone else?"

W - Weaknesses
These are the negative internal factors that place the organization at a disadvantage compared to others. They are areas that need improvement.

Examples: High debt levels, weak brand recognition, outdated technology, poor customer satisfaction, lack of expertise, inefficient processes.

Key Question: "What could we improve? Where are we losing competitive ground?"

O - Opportunities
These are favorable external factors that the organization can leverage to its advantage. They arise from the market, industry, or macro-environment and represent potential pathways for growth.

Examples: A growing market, new technologies, changes in consumer lifestyles, loosening of government regulations, a gap in the competitor's offerings.

Key Question: "What good chances are out there? What trends can we take advantage of?"

T - Threats
These are unfavorable external factors that could harm the organization's performance or position. They represent risks that the company must guard against.

Examples: New competitors entering the market, changing consumer tastes, new government regulations, an economic downturn, negative media coverage.

Key Question: "What obstacles do we face? What are our competitors doing well?"

Marketing's Internal Role: Collaboration and Conflict

Conclusively, the marketing department has a significant impact on other departments within a company. For example, marketing influences the research and development (R&D) department and can play a critical role in fostering innovation by initiating new ideas or transforming customer needs into solutions (Verhoef & Leeflang, 2009).

However, marketing also has the potential to clash with R&D. The latter typically requires a long period to develop a product, whereas marketing often demands faster completion to ensure the company is first to launch before competitors (Brassington and Pettitt, 2013). This tension highlights that marketing is not an isolated function but a collaborative force that, when aligned with other departments, drives the entire company forward.

Conclusion

In conclusion, marketing is much more than a business function — it is the driving force behind organizational success. By bridging customer needs with company goals, it helps businesses stay competitive, relevant, and growth-oriented. Through effective market research, strategic tools like SWOT and STEEPLE, and collaboration with other departments such as R&D, marketing fosters innovation, informed decision-making, and customer-centric strategies. Ultimately, it is an integrated discipline that combines insight, creativity, and strategy — forming the core of every successful business.


References

• Berman, J. (2017). 10 Cult Brands So Popular They Don't Need to Advertise.  
• Brassington, F. and Pettitt, S. (2013). Essentials of Marketing. Bookshelf.vitalsource.com.
• Business Queensland (2017). Responding to competition | Business Queensland. Business.qld.gov.au.
• Comer, M. (2016). 6 reasons great brands don’t advertise.
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• Frue, K. (2018). 6 Frustrating Disadvantages of PESTLE Analysis. PESTLEanalysis.com.
• Hill, B. (n.d.). The Most Important Ways to Achieve Customer Satisfaction. Smallbusiness.chron.com.
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• Medium (2017). 5 Reasons Why Market Research Is Crucial For Your Business. 
• Mindtools (n.d.). PEST Analysis: Identifying Big Picture Opportunities and Threats. [
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• Walden, J. (2011). Comparison of the STEEPLE Strategy Methodology and the Department of Defence’s PMESII-PT Methodology. Supply Chain Research.