Gathering and Applying Marketing Research – Assignment Example
Gathering and Applying Marketing Research Gathering and Applying Marketing Research I use Baylis and Harding hand wash lotion on a regular basis owing to its superior quality and variety. The company has enjoyed immense success in the hygiene and beauty market and this explains why it is planning to expand its business in other products. Some of the spin off products that the company is considering includes establishing a make-up line as well as clothing line. These new products are all related to the company’s business and are likely to profit from the success that has been established by hygiene products such as the popular hand wash lotion. This will be a risky move for the company and it is therefore important for the entity to conduct a comprehensive market research before investing in the new product (Birn and Forsyth, 2002).
Market research is the initial step in marketing after the ideas of the spin off products have been laid down. The company should conduct this research to get an extensive understanding of the marketplace and this information will be used in decision-making. This market research will be used to get information on the competitors, solve problems and establish what the consumers need (Birn and Forsyth, 2002). The marketing team then evaluates this data and comes up with appropriate marketing strategies for the new product. There are various types of market research that can be used.
The first type is the use of focus groups. These will be done in focus group institutions that have a one-way mirror so that the marketing team can listen to what the consumers have to say about the introduction of the spin-off products (Birn and Forsyth, 2002). These interviews are conducted by a moderator who asks various questions to the participants. Focus groups are made up of six to ten individuals. The moderator may ask the customers on how they feel about the new products and how much they would be willing to pay for them. The company will then use the findings from the focus groups to narrow down to the spin-off products that have the best offering or that are preferred by the highest number of participants.
The second type of market research that may used by the company is testing. For instance, the company may test products for its make-up line and get to know how it will perform in the market (Birn and Forsyth, 2002). The company may create awareness of the new products by using magazine ads and ads in local radio and TV stations. The corporate marketing team may analyze the sales and determine if the new meal will be successful.
It is important to ensure that the answers obtained from the market research studies are accurate for decision making. This may be done by involving the use of pre-existing groups. Secondly, questionnaires should be used and this can improve accuracy of the market research. Thirdly, the participants should be asked to clarify their ideas and improve awareness of data quality and privacy (Birn and Forsyth, 2002). Finally, the participants are asked to be cooperative and give honest answers. These will result into improved accuracy of the market research.
Birn, R., & Forsyth, P. (2002). Market research. Oxford, U.K.: Capstone Pub.