Strategy for Conducting Market Research
No seasoned hiker would embark on a lengthy journey through a desolate wooded area without a compass. Despite the thrill of the unknown, he or she would want, at the very least, some sense of direction to point the way. The same can be said of organisations embarking on the introduction of new products and brands. While it is a poor business practice to never try something new, organisations should determine their direction by conducting effective market research.
Market research is undertaken for many reasons. An organisation might see a drop in sales, for example, or may want to take advantage of an opportunity that allows for introducing a new product or brand into an untapped market. The first thing an organisation needs to do is to understand the issue and formulate an overall research objective. Sales may fall for many reasons, such as changing demographics, trends or economics. To complicate matters, some of these factors may occur simultaneously. Whilethe overall question may be simple (e.g. why are our sales declining? Will customers in this new market buy this product?), getting to the actual issues and formulating the correct research questions for the market research is more difficult.
Market research as a strategic business practice is on the rise, branching out from organisations selling products to those that ‘sell' intangibles such as political candidates or consulting services (Jobber and Ellis-Chadwick, 2013).
In Unit 1 you examined how an organisation's current products met its customers' needs and values. In this unit, you propose a new product for the same organisation you identified in Unit 1. The new product should align with their brand and will be introduced in a new international market.
To prepare for this Individual Assignment:
• Review the organisation you selected for your Final Project.
• Review the Readings from this unit. In addition, search the Internet and University of Roehampton Library. Identify three relevant articles regarding market research approaches for determining market demand for branded products.
• Think of a new fictitious product that you believe would be commercially successful in a new international market of your choice.
• Choose two market approaches that you believe would be most effective in determining the demand for this new product.
To complete this Individual Assignment:
• Describe a new fictitious product idea that you believe would be a logical fit for your chosen organisation and its brand promise as well as commercially successful in a new international market of your choice.
• Describe the market research approaches you chose that you believe would be most effective in determining the relevant segments and demand for this new product. Your post should explain why you believe they would be most effective in allowing you to better understand three of the following topics in terms of market demand:
o Current brand strength (e.g. measures of brand equity)
o Market and segment size and growth
o Customer segment characteristics
o Competitors and alternatives
o Buyer behaviour and the buying process (i.e. choice criteria)
o Potential for the use of digital marketing processes (e.g. ecommerce, social media) to support the customer buying process.
• Be sure to include specific examples and support your postings with evidence of the Readings and other current literature from the UoRL Library and other sources. Consult the Harvard Referencing Style Guide for proper citation and referencing information.
Influence of Culture on the Buying Process
Times of societal stress demand that marketers comprehend the authentic experience of individuals' personal worlds, which includes one's illogical preferences, innocent desires, messy assumptions and untested deductions.... This emotional-cognitive progression is ceaselessly informed by the development of one's self-identity, which underlies their unconscious purchase calculus. Understanding this process entails a shift in perspective from seeing consumers as data points to valuing consumers as people (Daye, 2010)
In the quote above, Derrick Daye urges marketing professionals to see customers and potential customers as more than sales figures and demographic percentages. Often, individuals' various viewpoints can be encapsulated into the term ‘culture'. Some view culture through a geographical or ethnic lens; however, individuals may identify themselves with many ‘personal worlds' or aspects of culture: age group, sexual orientation, gender, hobby or occupation, to name only a few. Within these groups are many subcultures, as well. With so many different possible cultures existing within potential markets, why is it important for organisations to pay such close attention to the influence of culture on customer buying processes and behaviours? You will discuss this as part of your Shared Activity.
Although culture is not restricted to geography and ethnicity, the reality is that, increasingly, many organisations are contemplating international expansion. As our world becomes more technologically advanced, it has also become more global. The ease of consumer purchasing options (e.g. online) as well as burgeoning economic powers (e.g. China, India, Brazil) fuelled by outsourcing production at lower costs have spurred organisations to consider taking their products and services into new territories. For many organisations, such expansion is a matter of survival. An organisation's decision to go global or stay local must be made strategically, and marketing efforts need to be integrated into that strategic planning.
Two major tenets are interwoven throughout any decision to expand internationally: consumer behaviour and cultural influences. Again, these are not necessarily separate concepts; in fact, it is important to understand how culture influences consumer behaviour. These readings will also be useful in your Shared Activity.
This Shared Activity will allow you to analyse factors influencing consumer behaviours, including the cultural influences behind the buying process.
To prepare for this Shared Activity:
• Review the unit Readings. Consider the triggers for international expansion posed by Jobber and Ellis-Chadwick (2013) for your Shared Activity. Also review how Court et al. (2009), and Guo (2013) describe reasons behind buyer decision making.
• Focus on how consumer behaviour influences buying decisions.
• Imagine that you are planning a week's vacation or holiday. Think of all of the choices you have in planning and what influences your decision making (e.g. culture, social class, reference groups). Do you tend to choose destinations similar to or different from your own culture?
• Choose a destination in a different country with a culture or cultures different from your own. Review tourism sites from the destination country.
To complete this Shared Activity:
• Briefly describe the destination you chose. Include the tourism Web site in your post.
• What triggers do you think influenced this destination to market itself internationally? Is the destination successful in its marketing efforts?
• Describe your buying process. In this case, ‘buying' refers to destination choice, ticket purchase, accommodations and so forth. In your description, include factors that influenced your consumer behaviours.
• Describe the differences between cultures in your home country and the destination country. Critically discuss the influence that culture has on the buying process. Provide examples from your experiences or reading.
• Evaluate the destinations marketing strategies to you as someone from a diverse culture. Was the destination successful in its efforts? Why or why not?
• Respond to your colleagues in your group who chose a different destination by offering an additional insight on what might have influenced their buying process or behaviours.
• Be sure to include specific examples and support your postings with evidence from the Readings and other current literature from the UoRL Library and other credible sources. Consult the Harvard Referencing Style Guide for proper citation and referencing information