What is marketing research? How has the Internet affected marketing research? As a part of your answer, address time, cost, approaches, and validity. Why is marketing research important to developing marketing strategy? Marketing research is the process of determining exactly what the consumer wants. This would involve determining if there is adequate market space to bring in a new product. Marketing research also determines what is happening in the economy. So basically market research is the collection of information before beginning a product or service. The internet has helped in marketing research. First it is quicker to find the answer the company is looking for. No longer do they have to employee people to do surveys at malls or send out mailers. They can set-up surveys online to get quick answers.
The company can set-up blogs so customers can talk about what they want or changes that they feel need to be made. All of this is less costly than the old way. Using the internet allows companies to watch their competitors and be able to tell if they are testing a new product. There are several approaches like I mentioned above, but the best approach is to set-up test ads and determine how often consumers will click on it to check out the new product idea. All of these are cost effective and that is part of the research. To spend a lot of money to determine if a new product is worthy is not necessary anymore.
With blogs many times the researchers can determine the honesty of the conversations instead of trying to figure it out on mailed in surveys. Without market research, market strategy cannot happen. Market strategy is basically the four P’s. So this means you already know if the consumer wants your product, now you can determine what price to put on it, where to sell it, and how to promote it outside the internet. The research is the beginning; the market strategy is a means to the end. A company cannot have a strategy if they do not know how the public will react to the product.
* What is competitive intelligence? What is the importance of competitive intelligence and analysis in modern-day marketing? How can a company’s marketing organization ensure that it is able to identify newly emerging competitors in time to plan and execute an effective marketing strategy in response to these competitors?
Competitive intelligence knows inside information of what your competitors are doing. This is comparing the prices they are using, what they are developing for new products, and understanding the changes in their financial statements. Competitive intelligence and analysis is important because it keeps companies current on what its competitors are doing. Without this information a company cannot compare its product to what is coming out or how to adequately make its products to compete with tis competitors. A company can ensure it knows what is happening with its competitors many different ways. One is to ask customers if they have compared this product to others.
The use of the sales personnel to compare competitor prices to a company’s by secretly shopping in other stores is another way. Many companies use secret shoppers now days and many times besides monitoring just their own business they monitor other businesses. I worked for a company once that used this technique. I would go in and price products and report back the prices, the services and the cleanliness of the store. Reading company new letters are another way to monitor a competitor. All of these techniques used together can offer a company an advantage in competitive intelligence against other comparable companies.
What are the different types of buyers and consumers? How does the type of buyer or consumer affect marketing strategy? As part of your response, consider the characteristics of buyers and the factors that influence their purchasing decision. How can an organization ensure that their market strategy is appropriate for their target market? Different types of buyers and consumers are based on age and ethics. Buyers and consumers can be children, teenagers, adults, and elderly. This also covers different ethics groups, such as Asians and Whites. Each of these groups have different ethic beliefs. Each type affects the marketing strategy differently. When aiming at an ethic group a company want to focus on a price they will pay and a product they will use. If a company is selling toys to children on the other hand they will use an area that the child will see it and then ask for it. This could be a television ad on the cartoons, or the bottom shelf in a store.
The consumer would be the child and the buyer would be the parent. With teenagers it is to create a product that will cause peer groups. Something everyone wants because their favorite singer is using a product or service or a favorite actress is wearing a certain brand. With cost this can be higher and still sell. With the elderly the opposite may be true. Many of the elderly are limited budget and want a product that is easy to use, such as opening jars that their hands are not strong enough to open anymore. For an organization to ensure that the strategy is right, the research must determine the wants and needs of each group is checkout completely. Marketing strategy is based on marketing research so the two must work together.