• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15

Marketing Strategy for Errol Anderson Motors - Chapter 2: Market research that could be undertaken to decide help decide Marketing Campaign

Free essay example:

Ali                11T

Business Studies (Coursework)                Marketing Strategy

GCSE Business Studies

Errol Anderson Marketing Strategy Coursework

By Ali

Ms Begum

Chapter 2: Market research that could be undertaken to decide help decide Marketing Campaign


Business Studies Coursework

Chapter 2: Market research that could be undertaken to decide help decide Marketing Campaign

Market Research

Market Research is defined by the internets’ answers.com as:

“The gathering and evaluation of data regarding consumers' preferences for products and services.”

In other words, market research is finding answers to questions to do with if there is a market for a particular product or service, and how popular it is. This includes expected prices and quality.

A variety of techniques of market research are used to find information about markets, competitors, target markets and their needs, customer satisfaction with products and services, market trends, etc. Businesses can learn a lot about customers, their needs and how to meet those needs. The main purposes for Errol Anderson are:

  • Remain ahead of competition (by understanding the current market).
  • Reduce risk of failure.
  • Understands the needs of the public (potential customers).
  • Promote the business in the correct way to reach the right people in the best way.

There are two types of Market Research; Primary and Secondary methods of research.

Primary Research

Primary research is the gathering of research yourself or ‘first-hand’. A few examples of this are surveys (questionnaires included) and/or undertaking interviews with the public. Primary research is good because the research and the information is specific to a companies needs. It is also up to date (fresh data on the current stance of the public) and private (other business may not use Errol’s data). On the other hand primary research can be expensive and Errol Anderson cannot afford to pay a lot of money. It also time consuming in the collecting of data and the comprehensive analysis required. Errol Anderson does not have a lot of time as a sole trader to do this and does not have enough skills. He may not pay a lot of money for someone to do this for him.

Secondary Research

Secondary research is using research already available. This could be buying from specialist companies (data which has already been recorded and is available). Another example is the internet. Secondary Research is usually free or inexpensive and can be found easily (if available). But sometimes it isn’t available or isn’t specific to Errol’s needs. It could also be out of date. Secondary data cannot push Errol Anderson Motors beyond its competition because it may be available to other businesses.

The process of research

Creating a survey or questionnaire

An effectual market research survey allows a business to explore their field, as well as discover areas of new growth. The information can be used to suggest areas of growth and identify how improvements can be made to a business. Market research using a questionnaire also supplies data for improving existing products or services and developing new ones.

A marketing survey can help a business determine the best approach for conducting business for new and existing product or service development. It is used to help improve overall business by testing the market for product awareness, analyzing trends for new products, discovering new services and determining the success of an existing product. Marketing survey data can also determine how different practises may influence the future of the business. The data can be used to assist a business in creating a successful product or expanding an existing one.

Errol Anderson Motors needs data to identify the pricing needed to establish the business as well as an estimate on how successful the business will be in general and what practises will be better than others.

The process of creating this is identifying what is needed and putting it into a questionnaire. This is a way to get information for a survey. Errol can make questionnaires for cheap prices and only pay for the amount of questionnaires created, which is not very costly for Errol. The problem with this is that Errol cannot afford to pay someone to make the questionnaire and distribute it and need to do it himself. This will use a lot of his time.

Collecting data about competition

Errol Anderson Motors needs to be better than its competition to attract customers. This could be in terms of customer satisfaction, pricing or location. Visiting nearby garages will allow him to identify the general pricing of garage service and Errol can set the businesses pricing to attract customers that used to visit the competition. This doesn’t take a lot of time as Errol can probably use a free Yellow Pages book to get the contact numbers of nearby Car Garages. Errol can then contact them and get a full price list over the phone.

Finding Surveys

Searching for already created surveys (secondary research) can be difficult or easy. In the case of Errol Anderson Motors, it is very difficult. This is because there are little or no published surveys available on the internet in regards to a success of a garage, nor a customers needs in a garage. Although there are many sites that can inform Errol facts like the average life span on a wheel and how often car-owners change them.

Internet Data

Business success can be achieved by research. On the internet, I could find many websites offering free tips on a successful business. This is useful to read as it allows you to read what others may have learnt due to their own errors or experience. A great website I found was www.morebusiness.com. It featured plans and steps in making a business successful. Errol can use this site to find excellent advise or running his business efficiently. It is also useful to build the businesses foundation in a good way so this should is useful especially before starting up the business officially.

Although this is good and free, the advice is limited and because it is free and not unique, any business may use it, and the advice is not as special and specialised as paid business advice.

Observation

Errol could use a very cheap and efficient method of research known as observation. This is done by observing the patterns of customers to see what is being sold and what is not. For example if one of the items prices went up and there were less sales on the item, Errol can know what the problem is. There are three ways this can be done, by ICT, on paper or Errol will just be conscious of what is going on. Using ICT is expensive but very efficient are reliable and the computer can sort the data how he wants it to provide useful information. Recording the data on paper can also be good but it would be hard to analyse and will take some time to record everything. Using ICT would be the best way because having a computer in his garage is very important. As well as recording sales, he can check email and look for data or get help on how to fix a certain problem, or get a contact number of a company, manufacturer or another garage. Observation will make Errol aware of the customers demand and could reduce his costs towards unwanted items.

Visual Evidenceimage00.png

Yell.com to search for competition

I can find nearby garages by running a quick search on www.yell.com. The image on the left shows my input into this site.

image01.jpg

My search started loading and the first thing that caught the eye was the adverts at the top. These lead to websites of the mechanics homepages.

image02.jpg

These were the top listings. These have been paid for.

After a page and a half of priority paid listings, free listings appeared. They are on the bottom of the image of the right. Most of the mechanic listings that have paid to have their own web pages linked. This shows that a website may be needed to go beyond what the competition have done.image03.png

The most appropriate devices

The methods of research which are the most appropriate financially and in terms of difficulty are:

  • Collecting data about competition by using yell.com. This is a very easy process and Errol can get contact numbers of nearby business and take pricelists and other information which he can use.
  • Using free internet data. Information and advice on the internet for businesses can be used by Errol to help him in decision making. It is especially useful at this time when Errol is building the foundations of his business. Going through the information is free and doesn’t take too much time.
  • Learning about other companies methods of marketing using Yell.com. Errol can learn how sites are using Yell.com and the internet to market themselves. This is also free and not very time consuming.
  • Observation. Errol should use ICT and Point of Sale software/hardware to monitor his sales and his stock levels. This will help him in deciding what to buy from the wholesaler.

Business Studies Coursework

Chapter 3: Marketing including promotions and advertising

Promotion & Advertising

Promotion is involvement of all the tools available to the marketer for marketing communication. This is a process which includes sales, public relation, direct sales, sponsorship, and of course, advertising.

Promotion in depth

Promotion of Errol Anderson Motors can involve little activities such as measures and policies intended to give the company notice. Errol should advertise unlimitedly inside his garage of all his products because it is free, and because everyone who will see them is a potential customer. This free customer interest brings about word of mouth so as well as external advertising, there should be internal advertising too. Promotion also includes offers like BOGOF (Buy One Get One Free), displays, special offers (i.e. discounts) and after sales services. Also loyalty vouchers are good as well, like a voucher for customers which gives 30% off on labour costs on next visit.  These are known as “Below the line offers”.

Promotional offers like these need to be created and thought of by Errol because he cannot afford specialist labour to advise him.

Advertising

For advertising, this logo has been created. It can also be used on the shop banner. If Errol decides to use a universal logo, customers can recognise the business quicker and have the image in their head and would then relate it when they have an issue with their cars.

image04.jpg

This logo will be used on all leaflets and posters. A leaflet has also been designed for Errol to hand out to cars as described in Chapter 1.


image04.jpg

Questionnaire

Dear Reader

I’m Errol Anderson, and I thought it would be nice to gather some of your thoughts to help me start my garage, Errol Anderson Motors, here in Harrow.

Why are we doing this?

We would like to know what you want from a garage to help us provide you with the best service possible. We want to know your needs and wants, so we can provide them. We will use your opinion to positively change how we work to meet your demands. We know that customers are the vital backbone of a business and without customers, well you can imagine that!

Anonymity

We treat all information with the strictest confidence and welcome, and are grateful, for any productive criticism that may concern you.

Please provide honest answers and try to answer as many as possible

Circle the answer that applies to you

What type of Vehicle do you own?

Car     Van     Bike     Other     No Vehicle

Where will an advert attract you the most?

The Yellow Pages     Billboard     Friend     Magazine or Newspaper     Internet

What attracts you to an advert?

Colour     Special Offer     Service     Location

What affects the decision you take, in choosing the garage you visit?

PriceCustomer Satisfaction and SpeedSpecial OfferFriendliness    Used in past

What would make you use a new garage?

Location     Price      Promotion     Service & Experience     Referral from Friend

About yourself

Gender?

Male                Female

Age group?

under 20          20-29          30-39          40-49          50-59          over 60

Please write any other comment below

One filled Questionnaire will go here


Business Studies Coursework

Analysis of Questionnaire

A1: Where will an advert attract you the most?

The Yellow Pages

Billboard

Friend

Magazine or Newspaper

Internet

Other

13

2

1

1

3

0

image05.png

The tally shows that more 3 of 5 people will be mostly attracted by The Yellow Pages. There were 13 responses that preferred this. The graph shows that it is the highest by far. I recommend that Errol Anderson Motors does advertise in the Yellow Pages because most households have a copy and when a person is in need of a garage, he will most likely grab a phone number from the Yellow Pages.

It is followed by Internet, though there were only 3 responses. I recommend a website on the internet because it is cheap to run, and it is shown on search engines like Google.com for free. By having a website, you gain the possibility of future advertising on the internet.

A2: What attracts you to an advert?

Colour

Special Offer

Service

Location

Other

3

5

9

1

0

image06.png

Just about half (9 responses out of 20) said that they are attracted by the service offered by an advert. This shows that people have special needs that they want addresses, not just car repairs which all mechanics do, but car modifying and special electronic equipment. I recommend that Error invests into making a lot of services available from the start. This will also help on the website, when someone searches for something specific on Google.com or other search engines, they will see Errol’s website and become a customer. There were also 5 responses for Special Offer. I recommend that Errol has a starting promotion so people are attracted to EAM before becoming a regular customer.

A3:What affects the decision you take, in choosing the garage you visit?

Price

Customer Satisfaction and Speed

Special Offer

Friendliness

Used in past

Other

1

5

5

6

0

0

image07.png

From the graph, you cannot point out which answer had the most responses or the second most responses. However, the tally shows that friendliness is the most affected in a person’s decision in the garage they visit. It is very closely followed by Special Offer and Customer Satisfaction and Speed.

There were 0 responses to the answer “User in past” which shows that the public will use new garages with special offers and customer care. I recommend that Errol shows care and good attitude to his customers and always try to make their experience as easy as possible.


Conclusion

I conclude with that that it is important to market your product because people are more attracted to the Yellow Pages that what their friends say. I strongly recommend Errol Advertises in The Yellow Pages because it isn’t expensive and a lot of people have it.

There were some responses the internet. I recommend a website on the internet because it is cheap to run, and it is shown on search engines like Google.com for free. By having a website, you gain the possibility of future advertising on the internet.

Customer care is also very important. There were some responses to “Friend” referral in A1. For someone to refer their friends, they must be satisfied with the business. In A3, Friendliness is the biggest factor which affects the decision of the visiting garage. Therefore the satisfaction of customers is vital.

A2 shows that people have special needs that they want addresses, not just car repairs which all mechanics do, but car modifying and special electronic equipment. I recommend that Error invests into making a lot of services available from the start.

Evaluation

This questionnaire was successful because it revealed some important factors to do with marketing the business. It has shown Errol the needs of people and how they would like the business to operate. The people have revealed how they are attracted to a business.

However, the graph in A3 was very bad, because the comparison was not shown properly and not much was revealed. I will use a bar chart with value and name labeling next time.

image08.jpg

The aim of this leaflet is to inform the public who read this of the services being offered at Errol Anderson Motors. These potential customers will hopefully find something that interests them and visit the garage.

The design is attractive and shows all the information needed in a clear manor with images. I have chosen to promote using leaflets because a person who receives a leaflet may feel valued and to return the favour, they may read it. The pictures are also interesting which will grab the reader’s attention.

This is a full coloured single sided leaflet. It will be handed to customers now and in the long-term also, so 5,000 prints will be appropriate. 5,000 A5 single sided glossy full-colour leaflets would cost £82 which would mean each paper would be worth 1.64p (Service from http://www.printcarrier.com/). This includes delivery to EAM but Errol would need to distribute it himself because he doesn’t have the resources to let others hand it out for him. He should give it to cars while waiting on traffic lights in Harrow especially near his garage.

The questionnaire revealed that people were attracted to the colour of an advert. This leaflet is full colour and it is filled with text or drawing so nothing is left blank white.

They were also interested in service. The questionnaire reveals some of the unique services on offer like car modifications.

People also showed interest that they would go to another garage for customer satisfaction. As they do not know this new garage, I have made a satisfaction promise and satisfaction is guaranteed. This will encourage the new customers.

Social and Financial implications

Social

By having a lot of cars, the congestion will increase. This may bring about complaints from nearby residents. Errol should not work after around 7pm and should not start before 9am to keep them happy, and to keep the noise down at off-peak hours.

Financial implications

By providing many services, Errol risks his cash and ties it up with these products. These products may not make up the money spent for them or their value may go down. Before investing in a product (especially that will provide service) Errol should research the demand on it and calculate the break-even of it.

A website running will also cost him even if no-one visits, however the costs are low.

Legislation

The Trade Description Act 1968 makes it a criminal offence for traders to make false statements about the goods they will sell. This means, for example, that it is illegal to say goods can do something they cannot such as saying a printer that prints only black and white can actually print colour

Errol needs to be aware of this act of law because if he wrongfully describes something and break this law he could face heavy fines and if he breaks it repeatedly, he may have to close down.

The Sales of Goods Act 1979 states that the person selling the goods must have the right to do so. This is not so much of a worry for Errol, because he has the right to sell all he will.

However the Act also states that goods must: Correspond with description and ‘as described’; be of satisfactory quality and be fit for it’s purpose.

Errol needs to know this because he could be penalised for breaking it. Errol should understand that a product should be fit for it’s purpose, not merely working on sale. For example you wouldn’t expect a washing machine to last 2 days, which renders the washing machine not fit for its purpose.

Page  of

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

(?)
Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Related AS and A Level Business Studies Skills and Knowledge Essays

See our best essays

Related AS and A Level ICT in Business essays

  1. Apple Incorporation - Case Analysis

    Whenever a company established a popular brand name or image it can reap some benefits. Some of the benefits associated with the name recognition is the ability to reduce advertising from the recognition perspective. Apple computers got its name from Steve Job's favorite fruit.

  2. I have been asked in this assignment to write a report about Asda and ...

    S= Smile to the customer M= Maintain a friendly attitude to them I= Interest the customers in your product L= Let them take their time E= Eye contact is essential S= Say "anything else?" and give a parting comment e.g.

  1. A description of the use of ICT for internal and external communications of the ...

    In the past, organisations such as banks depended heavily on their physical capital (e.g. bank buildings and equipment). Today they are far more reliant on the quality of their information technology communications systems. Modern organisations recognise that, if they have the best systems and that these are applied appropriately to

  2. customer service with in Sainsbury

    Our staff will be happy to help. * Wheelchairs and specially adapted trolleys These are available in every store (excluding Locals and selected Centrals where space is limited). Electric scooters are available in larger selected stores. We are also members of Baywatch a campaigning body founded by four organisations: The

  1. Why people decide to setup in Business?

    You can solve this problem by locating to an area where there are buses stops near you, parking for customers with cars and near a motorway for suppliers who are bringing deliveries to your business. May not be able to fine right staff, cannot afford training You may be hiring

  2. Business Internet marketing

    Firstly, the internet can help company's gain a much larger profit if the company use the internet to set up a service were they can sell their products over the internet. This would secure the business with a much greater income.

  1. Market Research

    Qualitative information (also known as qualitative research) is based upon personal view and it is said to be sub-objective. Qualitative information involves descriptions that are made by a respondent in a survey, with regards to their opinions, attitudes, reactions, impressions and suggestions. This type of information can help Cadbury Schweppes to find out whether or not they have met the needs of their customers.

  2. Customer Service Assingnment

    year report to show that they take care of their customers well in order to provide them with everything of their needs. Sainsbury provide their customer's loyalty and every product their customer's buy they provide them value in that purchase they have bought.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work