MM Mid1 Set 3
MM Mid1 Set 3
Marketing research plays a crucial role in helping organizations stay competitive in the
market by providing valuable insights into customer needs, preferences, market trends,
competitor strategies, and industry dynamics. Here are several ways in which marketing
research contributes to maintaining competitiveness:
1. Understanding Customer Needs and Preferences: Marketing research enables
organizations to gain a deeper understanding of their target customers, including their
demographics, behaviors, attitudes, and purchasing patterns. By collecting and
analyzing data through techniques such as surveys, focus groups, and observational
studies, organizations can identify emerging trends, preferences, and unmet needs in
the market. This information helps organizations develop products and services that
are tailored to customer preferences, leading to higher satisfaction and loyalty.
2. Assessing Market Opportunities and Demand: Marketing research helps
organizations identify market opportunities and assess the demand for new products
or services. By conducting market analysis and segmentation studies, organizations
can identify niche markets, untapped customer segments, and emerging trends that
present growth opportunities. This allows organizations to allocate resources
effectively, prioritize product development initiatives, and capitalize on market trends
before competitors.
3. Evaluating Competitor Strategies: Marketing research allows organizations to
monitor and analyze competitor strategies, including product offerings, pricing,
distribution channels, and marketing tactics. By conducting competitive intelligence
studies and benchmarking analyses, organizations can identify competitor strengths
and weaknesses, assess market positioning, and identify areas of competitive
advantage. This enables organizations to refine their own strategies, differentiate their
offerings, and respond effectively to competitive threats.
4. Optimizing Marketing Strategies and Campaigns: Marketing research provides
valuable insights into the effectiveness of marketing strategies and campaigns. By
conducting market testing, ad tracking studies, and customer feedback surveys,
organizations can assess the impact of their marketing efforts on brand awareness,
perception, and sales. This allows organizations to optimize marketing spend, refine
messaging, and target the right audience with the right offers, leading to improved
campaign performance and ROI.
5. Anticipating and Adapting to Market Changes: Marketing research helps
organizations anticipate and adapt to changes in the market environment, including
shifts in consumer preferences, technological advancements, regulatory changes, and
economic trends. By continuously monitoring market trends and consumer behavior,
organizations can proactively identify threats and opportunities, adjust their strategies
and tactics accordingly, and maintain agility in response to changing market
dynamics.
Overall, marketing research serves as a strategic tool that empowers organizations to make
informed decisions, drive innovation, and maintain a competitive edge in the market. By
leveraging insights from marketing research, organizations can better understand their
customers, competitors, and market environment, enabling them to develop effective
strategies that drive growth, profitability, and long-term success.
Objective of Company
The pricing policy of the company is also depending upon the objective of the
company. If the company’s objective is to capture market share then it will
charge a lower price and if the objective of the company is to earn more ROI
then it will charge a higher price for its products.
Reputation of Firm
The goodwill of the company also affects its pricing policy of the company. If
the company carries a good reputation in the market then it will help the
company to higher prices for its products. Eg. Amul company charges a high
price for its dairy products as it carries a good reputation in the market.
Advertising Expenditure
Advertising and promotional expenditure incurred by the company also affect
the pricing policy. If the expenditure of the company on these activities is more
than the price charged by the company for products; will be higher and vice-
versa.
Credit Policy of Company
Every company gives a credit period to wholesalers or retailers for making
repayment of the price charged by the company. If the company has a policy of
giving more credit periods then the price charged by the company will be
higher. If the credit period is given less credit period then the price charged will
be lower.
External Factors Affecting Pricing Decisions
Following are the external factors affecting pricing decisions:
1. Customer
2. Competition
3. Government Policy
4. Intermediaries Involved
External Factors Affecting Pricing Decisions
Customer
Customer tests and preferences change over a period of time. Therefore the
company needs to take into consideration various customer factors before
determining the price for its products. Customer factors such as purchasing
capacity, income level, etc. need to be considered.
Competition
The study of the pricing policy of the competitors is very important before
setting prices for products. If competition is tough in the market then the
company should restore lower pricing for its products to get competitive
advantages in the market. If there is a monopoly or less completion then the
company charges a higher price for its product.
Government Policy
Government rules and regulations are very important before finalizing the price
of the product. For a certain category of goods and services government may
announce a predetermined price and all companies dealing in such kind of
goods and services has to follow the norms of the government.
Intermediaries Involved
To travel goods from a company to a consumer many intermediaries are
involved. The larger the number of intermediaries in the supply chain higher
will be the price of the product and if the number of intermediaries is less then
the price of the product will be less.
3. Convert the steps of the marketing research process into a practical plan.
Marketing research encompasses a range of activities aimed at gathering information and data
to help your company better understand its target market. Once you capture market research
data, you can then leverage it to introduce or upgrade products, improve the customer
experience, craft a sharper marketing position, or help guide business decisions.
1. Identify the Problem or Research Objective:
Define the specific problem or objective that the research aims to
address.
For example, "Understand customer preferences for eco-friendly
packaging in the skincare industry."
2. Develop the Research Plan:
Determine the research approach (e.g., qualitative, quantitative, or
mixed methods).
Decide on the research method (e.g., surveys, focus groups,
interviews, observation).
Develop a sampling plan to select the appropriate sample size and
target population.
Create a research instrument (e.g., questionnaire, interview guide)
to collect data.
Establish a timeline and budget for the research project.
3. Collect Data:
Administer surveys, conduct interviews, or organize focus groups
to gather data.
Ensure that data collection methods align with the research
objectives and target audience.
Monitor data collection processes to maintain quality and
reliability.
4. Analyze Data:
Clean and organize the collected data for analysis.
Use statistical analysis techniques (e.g., regression analysis, factor
analysis) to analyze quantitative data.
Conduct thematic analysis or coding to analyze qualitative data.
Identify patterns, trends, and insights that emerge from the data.
5. Interpret Findings:
Interpret the results of the data analysis in the context of the
research objectives.
Identify key findings, implications, and recommendations based on
the research findings.
Consider how the findings align with existing literature, theories,
and market trends.
Determine the significance of the findings for decision-making
purposes.
6. Report Results:
Prepare a comprehensive research report summarizing the research
process, findings, and conclusions.
Present the report in a clear and concise manner, using visual aids
(e.g., charts, graphs) to illustrate key points.
Include recommendations for action based on the research findings.
Distribute the research report to relevant stakeholders within the
organization.
7. Take Action:
Develop an action plan to implement the recommendations derived
from the research findings.
Communicate the findings and recommendations to decision-
makers and relevant departments.
Monitor the implementation of the action plan and evaluate its
effectiveness.
Use feedback from the research to refine marketing strategies,
product development initiatives, and customer experiences.
8. Follow-Up:
Conduct follow-up research to track changes in consumer
preferences, market trends, or competitive dynamics.
Continuously monitor and evaluate the effectiveness of marketing
strategies and initiatives.
Incorporate new insights and findings into future research efforts
and decision-making processes.
By following this practical plan, organizations can effectively conduct
marketing research to gain valuable insights, inform decision-making, and drive
business success.
4.Address the challenges a company might face during the new product
development phase. How can these challenges be overcome?
Strategic Goals and Objectives: The strategic goals and objectives set by
senior management guide the direction and focus of marketing efforts. Aligning
marketing strategies with broader business objectives ensures coherence and
synergy across organizational functions. Whether the goal is to increase market
share, launch new products, expand into new markets, or enhance brand
perception, marketing plays a pivotal role in driving strategic outcomes and
achieving long-term success.
6. Sketch the stages of the product life cycle and label the key
components that influence marketing strategy at each stage.
The product life cycle (PLC) consists of four stages: Introduction, Growth,
Maturity, and Decline.
1. Introduction Stage:
Description: This stage begins with the launch of a new product
into the market. Sales are typically low as consumers become
aware of the product and its features.
Key Components:
Product: Focus on product development and differentiation
to attract early adopters.
Price: Set prices strategically to penetrate the market while
covering initial costs.
Promotion: Create awareness through advertising and
promotional campaigns targeted at innovators and early
adopters.
Place (Distribution): Establish distribution channels to
reach target customers efficiently.
2. Growth Stage:
Description: In this stage, sales and demand for the product begin
to increase rapidly as consumer acceptance grows. Competitors
may enter the market, leading to increased competition.
Key Components:
Product: Expand product features and variations to meet
diverse customer needs.
Price: Adjust prices based on market demand and
competitive positioning.
Promotion: Increase promotional efforts to build brand
loyalty and differentiate from competitors.
Place (Distribution): Expand distribution channels to reach
a wider customer base and improve availability.
3. Maturity Stage:
Description: Sales growth begins to slow down as the market
becomes saturated, and competition intensifies. Companies focus
on maintaining market share and profitability.
Key Components:
Product: Differentiate the product through innovation,
quality improvements, or product extensions to retain
customers.
Price: Adjust pricing strategies to remain competitive while
maximizing profitability.
Promotion: Emphasize brand loyalty and customer retention
through targeted marketing campaigns and loyalty programs.
Place (Distribution): Optimize distribution channels and
partnerships to enhance market coverage and accessibility.
4. Decline Stage:
Description: Sales decline as consumer demand wanes, market
saturation reaches its peak, or new technologies emerge, rendering
the product obsolete.
Key Components:
Product: Consider product modifications, upgrades, or
phase-out strategies based on declining demand and
profitability.
Price: Implement pricing strategies to maximize revenue
from remaining loyal customers while managing inventory
and production costs.
Promotion: Reduce promotional efforts and focus on
liquidating remaining inventory or targeting niche markets.
Place (Distribution): Rationalize distribution channels and
inventory management to minimize costs and maximize
efficiency in the declining market.
Throughout the product life cycle, companies must continuously assess market
dynamics, consumer preferences, and competitive pressures to adapt their
marketing strategies effectively and maintain relevance in the market.