• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Marketing Assignment - advising the managers of Tammy on their marketing research and strategy.

Extracts from this document...

Introduction

1. Assuming that one of your first tasks is to persuade senior managers at Tammy of the need to collect some marketing information to improve the running of the business. Critically assess the types of information that you believe would be useful for marketing purposes and discuss how you would collect this information, drawing a distinction between secondary and primary data. Explain how this information would assist in marketing decision making at Tammy. Primary research entails the use of immediate data in determining the survival of the market. The popular ways to collect primary data consist of surveys, interviews and focus groups, which shows that direct relationship between potential customers and the companies. (Palmer, 2009:134) Secondary research is a means to reprocess and reuse collected information as an indication for betterments of the service or product. Both primary and secondary data are useful for businesses but both may differ from each other in various aspects. (Palmer, 2009:134) Secondary data refers to information in which in some sense is second-hand to the current project; this is because it is collected internally by the organisation. Also, it can be a useful point for a research exercise, if somebody else has collected data or published a report in a closely related area, it is often much cheaper to buy the report rather than afresh. (Palmer, 2009:135) Primary research is concerned with generating more information directly from the target population. It tends to become more expensive to conduct than secondary research, but results are invariably more up-to-date and specific to a company's objectives. (Palmer, 2009:135) There are various researching methods that include: * Data collection methods - observation techniques * Quantitative and Qualitative Research * Articles/magazines Data collection methods The approaches to collecting can be identified by observation of the individuals who the researcher is interested in or by interacting through survey. (Palmer, 2009:139) Examples of some observation techniques for Tammy are: * The use of 'mystery shoppers' is becoming increasingly common among services companies who use them to check on standards of services. ...read more.

Middle

Consumers want to get the most for their money or, to maximise their total utility. Rational behaviour also requires that a consumer not spend too much money irrationally by buying tons of items and stock piling them for the future, or starve themselves by buying food at all. Consumers all engage in rational behaviour. A marketing-oriented organisation requires all of these departments to 'think customer' and to work together to satisfy customer needs and expectations (Palmer, 2009:26). Palmer (2009:6) says there are three components of market orientation which are customer orientation, competitor orientation and inter-functional orientation. Customer orientation requires that a company understand not only the present value to the customer, but also how this is likely to evolve over time. Competitor orientation is when a firm should work at how well its competitors are able to satisfy buyers' needs. Inter-functional orientation requires that the organisation draws upon and integrate its human and physical resources effectively and adapt them to meet customer needs. Tammy should understand the awareness of ethics because the buyer who purchases their products could have a cause of concern from where the products were made from, despite the fact Tammy produce such quality products yet wonder what the working conditions in India are like. It could be the thought that the workers are being exploited into working for longer hours for minimal wage prices, which can also disrupt the user's behaviour especially if they have moral issues about ethics. An example is that generic brands being bought by Primark would not concern the buyer because it would be obvious that the workers are working at a lower wage rate since they have cheaper quality products. Decision making unit is where few purchase decisions are made by an individual without reference to others (Kotler, 2009: 46). Usually, other people are involved in some sort of role and have a bearing on the final purchase decision. ...read more.

Conclusion

Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favourable perceptions among buyers, based solely on the price. The practice is intended to exploit the tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. Penetration pricing involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share. This strategy is most often used businesses wishing to enter a new market or build on a relatively small market share. Value-based pricing is a method of pricing products in which companies first try to determine how much the products are worth to their customers. The goal is to avoid setting prices that are either too high for customers or lower than they would be willing to pay if they knew what kind of benefits they could get by using a product. Product-line pricing is a collection of product items that are related by the type of raw materials used, similar technology used, or merely as a common-sense grouping. A truly effective product line should be customer-focused and therefore should link to the range of needs of the particular segment/s targeted by the firm. I would recommend product-line pricing because Tammy could exhibit their clothing by using a dummy with an outfit to bring out attention to their customers because products like clothing have a short life cycle; therefore they need to be sold as a collection than individually. As a children's company, they can provide different ranges of clothing, i.e. for males, a matching shirt, jeans and matching shoes for a lower price as an outfit rather than buying each of them separately. Also, they could do promotional deals, i.e. buy 2 shirts and get one free is like an extra feature offered in order for the consumer to pay. This would draw enough interest in the primary product that the upgraded product (the free shirt) will be sold at a greater price based off in the basic primary product. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

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

See related essaysSee related essays

Related University Degree Marketing essays

  1. Dairy Milks current marketing strategy

    Cadbury will use the cost of production as the baseline on which to charge prices, but this may not be the final price, as Cadbury will use the cost of production as the baseline on which to charge prices, but this may not be the final price, as Cadburys would like to be competitive in the market.

  2. Renault Marketing Project

    an overview of an effective brand development process and is not meant to be comprehensive or represent strategic brand development in its entirety. BRAND DEVELOPMENT STRATEGIES; LINE EXTENSION BRAND EXTENSION MULTIBRAND NEW BRANDS LINE EXTENSION: A new product marketed by an organization that already has at least one other product being sold in that product/market area.

  1. Introduction to marketing - Burberry

    the company should place itself in the multiple products with elite cost, and because of this, the Burberry Company uses diversification strategy. Marketing strategy for growth Many businesses operate in or intend to move into markets where business growth is both desirable and possible.

  2. Corporate Strategy and Policy - Project report:Tata motors.

    In terms of costs purely : Road( Delhi-Mum): 1631/tonne Rail( Delhi-Mum) : 1362/tonne Profitability of the producers of Substitutes 2 20 Fairly high profitability OVERALL RATING 2.5 100 Bargaining Power of Buyers Attractiveness Remarks Score Weight (%) Number of Buyers 4 15 Very large no of buyers: 2 lakh truck

  1. Build a Bear Workshop Global Strategy

    For example, given they decide to expand to China, where the country is of rich culture, and has many icons that symbolise its culture, a cultural department in the store could include pets such as, dragons, the animals on the Chinese zodiac...etc.

  2. Selfriges Marketing Analysis and Strategy

    They were taken into consideration during the marketing plan creation once some of them can imply a negative effect on Selfridge's business (threats) while some others can be seen as opportunities for the company. 2.2 Micro External Environment Factors such as: customers, suppliers, shareholders, employees and media affect businesses and

  1. MARKETING STRATEGY

    Although Carib Brewery is the largest brewery in the Eastern Caribbean it has a challenge to continue establishing itself internationally and to turn all its products into global brands. The top four brewing companies only have about 33% of market share worldwide.

  2. Analysis of Pizza Hut's Marketing Strategy in Roumania.

    To have 5 cars for the PHD service 4. To launch a new TV commercial 5. The introduction of the Extreme Pizza 6. Advertising properly the new product through a flyer campaign 1. Marketing strategy 4.1 Market segmentation strategy Market segmentation of Pizza Hut is quite simple and easy to understand.

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