Marketing Research Problem
A software company wanted to new product. It used a market research to decide what features would be added to the new product and to test which features target customers were willing to pay the most. Audra Bianca (p 27 2007) urged that since the established company was entering a new product into the market, it sought marketing research reports on industry analysis as part of the research. These reports contained information about major competitors, government regulations, and socioeconomic data.
Scott Smith (2012) the information needs to address the problem and can be obtained from both Secondary Research Sources and primary sources. The company created company-specific marketing research reports through primary research surveys. This involved the customer satisfaction study which measured how satisfied the company’s customers were with the product quality and even price as opposed to other industry competitors. The study aimed at determining the likes and dislikes of consumers. Using the survey results, the company decided on whether to introduce the new product or not.
Kinnear et al (1988) Customer profiles were obtained by including demographic questions such as age, household size, and income in their surveys. The company then created reports that showed what types of customers were more likely purchase their products. Customer profile reports were used to target advertising and other promotions.
Rick S. (p.4 2009) Marketing research reports and industry analysis related to software products available were consulted. The Company ordered secondary marketing research reports to study the key competitors in their industry. These reports contained strengths and weaknesses of competitors as well as recently implemented marketing strategies. The key measurements in these reports were market share. This helped the company study market share to see how they compare with other firms in the industry. This provided competitive information for the company to enable proper decision making in production of the new software.
Secondary marketing research reports also showed competitive sales trends for the software industry. Sales trends reports showed how sales over time were going up, down and times staying constant within the industry. Individual sales trends showed how each competitor fared in a given year. For example, if a competitor’s sales were outpacing those in the industry, the company was doing something right, probably advertising more or differentiating their brand from the competition.
In addition to selecting an objective method of inquiry, Paul H. et al (p 15 2006) the company selected a non-experimental research method as this allows observation but not intervention. It simply involved observation and report of the findings.
Naresh. M (p 34 2006) the research design which is a framework for conducting the study and collecting data involved the specific methods and procedures that were used to acquire the information needed. It was used to find out what customers thought and what they wanted. The design involved use of a survey which was a direct way of collecting quantitative and qualitative information. The company used a method that was designed to collect a random sample from the target consumer population hence was able to generalize its survey results to represent the target population.
Part of the marketing research involved observing customers in action and noting their preferences which interfered with a consumer’s experience to the point that they felt disgusted and left the business site. Although researchers conducted a short survey, they aggravated customers by slowing down the line.
The Data Collection Techniques used by the company were interviews and observation. The Interviews required asking of questions and receiving of responses. The interviews were conducted face-to-face, by mail, by telephone, by email, or over the Internet from the target customers during purchase of products.
Another way that the company collected data was by observation. Observation of the target customers’ behavior and reaction towards the new product helped to predict acceptability of the product by the customers. In order to analyze information from interview or observation techniques, the results were recorded.
The mode of data collection required 200 personnel and was costly. Face-to-face and telephone interviews required use of a data collection agency. Internet surveys required fewer personnel, were less costly and took less time to be completed.
Michael (p.3 1984) In order for data collected to be useful the company had to analyze it through various analysis techniques that were effective. After analysis the data was presented in PowerPoint presentations, graphs, and face-to-face reports for easy interpretation and comprehension by the company management team. From the research the company found out that the customers were in need of the features in their new product and hence released them to the market which fetched it an upper hand in the market share compared to the competitors.
The major marketing research problem faced by the company related to how the survey was offered to the target population. Marketers designed a survey that many customers chose not to respond to. They looked at reasons why people did not want to participate, and they reached to conclusions such as the survey took too much effort or that the incentive for participation was not appealing to respondents.
Audra Bianca, (2007) Examples of Marketing Research Problems Demand Media
Kinnear, Thomas C.; Root, Ann R. (1988), 1988 Survey of Marketing Research: American Marketing Association, Chicago.
Michael (1984), “Prepare for Your Future in Marketing, Your Interviews, and Something ‘Extra'”, Student Edition Marketing News (2): 3–4 Boudreaux
Naresh Malhotra (2006) Marketing Research: An Applied Orientation (5th Edition)
Paul Hague, Nick Hague and Matt Harrison (2006) Business-to-Business Marketing
Rick Suttle (2009) Marketing Research Reports & Industry Analysis Demand Media
Scott Smith (2012) Marketing Research Process: 9 Stages to Marketing Research Success