Introduction to Marketing - Different Companies have different methods of selling their products, some companies decide to launch an item and wait for the results of the sales.

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Introduction to Marketing

2.

 Different Companies have different methods of selling their products, some companies decide to launch an item and wait for the results of the sales. Another method of selling a product is to research the market in which it is to be sold. There are various ways of conducting some market research, much depends on the item you wish to sell, the time you may have to research and the amount of money that is available.

People who are expected to be consumers may be approached in order to recognise their needs, this may be done through questionnaires verbally by post or by phone once their needs are recognised it will be clearer what to provide for them.

Research into the companies' product may provide information into potential competition and pricing the product. Price is of obvious importance for maximum sales and maximum profit. Researching the market may suggest that a sample should be circulated in order to address and amend any issues for example if it is an edible product the taste and smell must be considered if it is an electrical product the functions may be considered is it user friendly or practical or too complicated the right product with the wrong design will not sell and cold turn a potential profit into a potential loss.

Studying peoples buying patterns will unveil ideas as to where this product should be sold, where people are more likely to buy them the consumer will have to be targeted and the product strategically planned in order to sell e.g. Haagen Dazs

Good market research and prompt recognition and coherence will allow the producers to adopt relevant selling strategies and the ability to satisfy and deliver to demanding consumers market, therefore creating a good flow of business transaction and generation of profits.

Market research can often prove to be expensive and time consuming and ultimately the results found through the research only suggest past events and past patterns it cannot be a guarantee for business or profit.

Market research will only suggest areas that have been studied it is possible that issues of particular importance may not have been researched and there is always the risk of unexpected circumstances arising for which the research conducted has no account Research all presents predictions and can be untrue this can cause a huge loss in invested money in to the research business.

Desk research involves secondary data, this information already exists and just needs to be broken down for the relevance of the product to be launched. Annual reports and accounts of every business are not always easy to access. This could make the research prolonged and time consuming when it would need to be efficient so that other copycat companies may not produce faster and benefit from your inefficiency. Market research is clearly significant as no market research means a bigger gamble, hence risk of losing capital invested. Without some type of research into the market, a product may be launched at a time which did not coincide with the spending of consumers. This would mean sales and no profit you could not sell woolly hats in the hot summer. The launch of a product needs to generate profits in order to pay for the capital invested. With no research the product may be sold at the wrong price/ time consumers will be put off of the product in the early days, making it difficult to recover from this anti product feeling among consumers. There may be a similar product on the market offering a promotion so it may be wise to delay the launch of a new one.

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Colour, name, size, and style, the presentation of the item entice consumers into buying. The wrong presentation may have damaging consequences therefore research into what consumers would like to buy what they are already buying.

Market research is therefore said to be of significance. The conducting of market research must however be concise and the conductors must be aware of what results are relevant and must utilise the budget and time accordingly. There is always danger of spending too much time and money and either going further then the required results, or not finding the information required.

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