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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

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. ...read more.

Middle

This would mean that the company who funded and conducted the research would suffer loss and take second place after their copycat rivals. Money invested in marketing a product must be limited considering the cost of producing and any potential error for ultimately every business has a goal of profit. If a product has a life cycle of consider that. Spending 2m on marketing and then making 2m in 2 years just to pay for the marketing results in no profit and risk of collapse and bankruptcy. 1. Product, Price, Promotion, and Place commonly referred to as the marketing mix and have a significant importance for marketing. These elements coincide with each other and if any one of them is wrong it may have costly effects although the others may be correct, research will have to be conducted, thee results of which have to be studied and then the MM can be developed. There are many factors which effect the MM for example if the product has a short lifecycle the producers need to make a maximum profit in a short time this may suggest that the price may be high because consumers will be prepared to spend in that time, or it may mean low price to encourage sales Lost Leaders! All this on the product itself price too high/ too low lifecycle would also influence the promotion of the product if it is predicted that the item will have a long lifecycle, Promoting the wrong ideology will have terrible consequences promotions may need to create a friendly image or a family image, healthy image, caring image. ...read more.

Conclusion

However, Walls did not use QUALATIVE research, which can only be used as an aid and not as a primary resource. The price was cleverly put between Opal Fruits and Magnum, but its interesting to know what were Walls forecast for Magnum, was Solero to take over Magnum or add to the profits generated by Magnum. Magnum and Opal Fruits were already on the market and were selling so Walls did not have to completely create a price, what they had to do was strategically place the price of the product in relation to established products. Walls development of the name was quite effective, as Solero seems to be a name that can be used in Europe. The resources already existed for Solero to be sold outlets retailers already had Walls products stocked and Walls managed effective distribution of their products. Walls had seen a potential problem in that they were not able to produce enough in June 1994 and therefore decided not to use any advertising promotions. This may have been avoided if primary research had been done earlier to see what the demands of the consumers were, and the forecast of the weather. The product proved to be successful and ultimately that is what produces profits. Walls chose to conduct little primary research it may be that it was not required as Solero was a success, but it may also suggest that Walls missed out on profits of one month in an exceptionally hot summer because of lack of primary research Also arguably, Walls set out to repeat the success of Magnum in the indulgence sector but according to the impulse-positioning map Solero is purchased as refreshment and not indulgence does this mean that there is still room for a product in the indulgence sector? ...read more.

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