Telephone interviews prove to be highly effective when time is of the essence, but a few disadvantages exist as well. Disadvantages like not being able to readily ask questions to which a search of company records are required, as well as the possibility of bias arising on the part of the interviewer as it must retain its neutrality, are some of the aspects to be aware of in this matter of survey research.
- Depth interviews and group discussion
A lot of the survey research conducted, evolved around the collection of quantitative data. Marketers on this research project were extremely interested in subjective elements as for example how users see and feel about plasma television, what their underpinning attitudes are towards it as well as their innermost fear about sight loosing. This qualitative data and the collection there-of had to result that depth interviews and group discussions are of extreme importance and very well suited.
The major advantage of group discussions over individual interviews is the interaction process. It generated more information that what could have been derived from individuals separately. Group discussions have also been one of the fastest growing types of marketing research techniques, as it was evident in the research done by Consumer Electronics Company.
- Observation
It is conducted actually by viewing the overt actions and behaviours of the product. The third primary data collection method was considered in the development of the plasma television included picture quality, easy control, and better service.
It encompassed recording user’s behaviour with monitoring instruments. It is impossible to observe personally but we can survey over 100 people about their interaction about plasma television.
- Experimentation
Experimentation is the last method of collecting primary data involves the manipulation. Manipulation of these variables can be done in such a way that its effect on another variable can be determined.
By giving a DVD player with plasma television in the first month we completed our experiment. And we contact with them after 15 days, who bought plasma television. We want to get information on attitudes, motives and opinion about plasma television.
With this successful method of primary data collection we have to consider some disadvantages, which was altered and taken into account in order for it to be useful part of marketing:
- Motivation and competitive actions and macro-environmental changes
- Losing respondents
- Selection error
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Shopping mall intercept and focus groups: the benefits-
Shopping mall intercept and focus group were conducted to generate new ideas for this new concept. The purpose of conducting this data about, and from the available market, was to gather information while at the same time, not influencing too much. The consumer preferences and reactions to the promotional idea (example television with DVD player).
Shopping mall intercept
This is an alternative way of research to the one to one interview method. By this method we can know customers interest and what they expect about the new launching product. Here we mention the list of benefits-
- Actual view of acceptance may be known
- The preferences and recommendation for launching a particular product
- It can give virtually true result about the customers choice of the product
- The validity of some answers can be assessed through observation
- Non-response is reduced
- Complex questions can be used during the intercept
Focus group
Focus groups may give their response on behalf of a large portion of customers. Another major advantage of this form of data collection is the interaction process. It generates more information than could be derived from individual research and interview cost.
Focus groups interview is helpful where individual interview gives complicated result. It becomes the fastest growing type of marketing research and for the foreseeable future; it looks set to remain one of the most widely used types of marketing research. It has increasingly been used to investigate further issues whilst highlighting initial quantitative studies.
In focus groups interview respondents are being biased sometimes.
Task – Three
- The influence of consumers buying plasma television
Consumer buying depends on various. Which influence them buy any product or use services. A part from quality of product some other things instigate consumers are namely culture, social, psychological influence and brand.
Cultural factors-
Consumer influences play the widest environmental factors and handling of technology it’s learned, surrounding things determine the values, needs and attitudes of an individual. Friends, family, neighbours have tremendous impact on the cultural values with which an individual grows up-
- Cultural influence may be some specific values, benefits and meaningful symbols that help individuals to make a decision about buying.
- Cultural influence may be on the basis of nationalities, religion, racial groups.
- Consumers are also affected by social factors such as family& groups.
- One’s family is the most important determinant of consumers buying choice.
- A consumer’s behaviour is influenced by many small groups.
It is important to note and re-emphasis the importance of cultural factors in launching and marketing a new product.
Social factors –
Social factors are society’s relatively permanent and ordered divisions whose members share similar values, interests etc. Criteria for this type of grouping include occupation, income and mentalities.
Social class has a major influence on buyer behaviour as classes have different product purchase behaviour in certain product categories. Several kinds of shops works like an association between social class and purchasing patterns. Thus social class isn’t longer felt to be such a strong predictor of buying behaviour.
Personal factors –
Personal factor is the second major group of factors that influence a consumer’s purchase decisions. The economic situation as well as life style and demographic variables are three of the major individual influences and factors in consumer buying:
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The economic situation- These influences were found not only to show much income individuals have, but whether they have borrowing power and what their attitude towards spending is. The individual consumer’s economic situation was of prime concern to our marketing manager when Consumer Electronics Company’s marketing strategy were planned and executed.
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Lifestyle variables- These explain individual’s interests, activities and opinion. A person’s life style describes about social class, personality and they interact with their environment. Lifestyle variables also have tremendous impact on purchase behaviour.
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Demographic variables- This describes individuals according to sex, age, income, occupation and education. These factors have an influence on the types of product an individual wants (needs), where to shop and how to evaluate possible purchases. The lifestyle stage is a concept very similar to this.
Psychological factors –
Psychological factors in consumer buying behaviour, Consumer Electronics Company considered perception, attitude and motivation as the most dominant factors.
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Perception- Explains the way in which individuals select, organise and interpret various situations and things. It also includes how a company and its products are interpreted. This can be affected by categorising information or even, combining it into brand images. The marketing team has thus become aware of the importance of building up brand awareness so that a personality for the buyers.
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Attitudes – Attitudes influence the consumers buying intentions. Consumers learn when they buy a product also the experience, satisfaction and dissatisfaction. Attitudes are very difficult to change, so companies that find that some products are associated with a poor attitude, would if at all possible, be advised to change their product than to try and change the consumer’s attitude.
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Motivation – Consumers are motivated to buy goods and services to satisfy their needs. As already mentioned, individuals have many different needs at any given time. Some are biological, such as hunger and thirst; others are psychological, such as need for recognition and self esteem. These needs become motives when it is aroused to a sufficient level of intensity. Mallow’s hierarchy of needs explained the motivations of the consumer-
- Consumers may go through some stages in the process of purchasing plasma
Television –
Figure: Framework of researched consumer buying decision process
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Motivation/ problem recognition – This is where the need for a particular product or service is identified, consumer is ready to justify their needs and get the right products. This is why as a marketing company we have to promote advantages of our product and why it is distinctive from others. By providing adequate information about product we will persuade consumer.
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Search – This is the stage where the consumer starts to gather information about “how to satisfy his need”. Suggestions and ideas from family, friends and/ or salespeople might be asked. Parents are looking into various sources and literature, specific to their needs as a family, to gain the relevant information.
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Evaluation of alternatives – The consumer now starts to evaluate the alternatives identified during the search process. A set of evaluate criteria is used to consider different choices. Customer evaluates activities and simulation of the developmental needs by looking products outfit and manual.
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Purchase decision – The actual purchase of the product is the end result of the search and evaluation. This is the stage where the consumer decides where, how and when to purchase plasma television.
Situation: A purchase decision can be strongly affected by the situation in which people find themselves. Not all situations are controllable, in which case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitor’s product
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Post purchase behaviour – this explains the purchase act in either a satisfactory or dissatisfactory manner. Post purchase anxieties, or the marketer can help reduce this anxiety. There exists no need for parents to experience this kind of behaviour, as the marketing process of Consumer Electronics Company has been well prepared in researching and combining this ( i.e. affordable price and readily available )
- Consumer buying roles and buying behaviour-
The following consumer buying roles are relevant for plasma television products:
- Initiator
- Influence
- Decider
- Buyer
- User
Business buying behaviour
Researches found that latest and user friendly, easy to operate and low cost of repair and availability of accessories of electronics product are the facts need to be highlighted during a successful marketing campaign. This is why company’s policy should revolve on those issues.
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Problem recognition – The buying process initiates when some one in the company identify a problem or the existing televisions cannot met the particular demand of company’s requirements. For example such any financial company that uses economic data for the daily transactions need to be display it on the screen. And they need to see share market index of all the companies such Reuters, Bloomberg, AP at the same time. For that purpose they need split screen plasma television rather than regular single screen one.
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Specification of purchase requirement – Every company’s goal is to reduce their cost in order to make more profit. This why every company tends to get most out of one product. They list their requirements and justify number of products in the market before making final decision.
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Supplier search – The Company will now ask register suppliers to submit their quotation. Board of directors, trade union members, and senior management will now evaluate the bids and make a short list of suppliers which fulfil company’s requirements.
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Supplier selection – Now decision making authorities review the proposals of short listed suppliers according to their product’s durability, reputation, cost effectiveness, warranty, backup service, maintenance and technical support.
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Contract agreement – Buying and selling parties will start negotiating the contract before making final decision. After making up their mind they will come up with the final price, payment method, and length of contract.
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Place and receive order – After signing the contract they will decide where and when the buyer wants to receive their products. Prior using their products buyer usually wants to make sure the products are in fine condition; this is why they will inspect all the goods and try to get rid of damaged things.
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Performance review – The buyer will monitor the machines performance and supplier’s support from time to time. After reviewing all those aspects the buyer will make a decision about continuing their contract with the supplier or to drop it.
Chapter – Four
- Distribution channel –
Distribution channels can be described in terms of the number of channel levels involved. It involves no middleman. In direct distribution involves the use of at least one middleman.
The final choice of the type of distribution channel depends on the following factors- size, needs and geographical location of the company. And the company’s market affects by the channel choice.
Product factors for example value, complexity, perishability of products in needed to be taken into account. Producer factors such as availability of resources and desire for control on the past of the manufacturer should be considered.
Middlemen factors as the availability and willingness of distributors must be carefully considered too.
- Market coverage –
A company needs to consider the market coverage strategies in distributing their products –
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Intensive distribution – A large number of intermediaries are making the products available widely.
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Selective distribution – Products are sold through a small number of selected outlets.
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Excusive distribution – Here the distribution is handled by one distributor who has exclusive rights for particulars territories.
- Diagram of a typical market channel –
We can describe it in following way:
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Corporate market channel – This combines successive stages of production & distribution under single ownership.
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Administered channel – In this system channel co-ordination is achieved through the exercise of power by a dominant channel member.
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Contractual channel – Contractual market channel is an agreement between channel members.
Figure: channel flows
It can be depicted more easier way as –
Manufacturer Ultimate consumer
Manufacturer Whole seller Ultimate consumer
Manufacturer Whole seller Retailer Ultimate consumer
Chapter – Five
- A-S-P stages of marketing planning –
Marketing planning involves deciding on marketing strategies that will help the company attain its overall strategic objective. It linked with strategic planning. Strategic planning may be defined as the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities.
Strategic planning involves defining a clear company mission setting supporting objectives, designing a sound business portfolio and co-ordinating functional strategies. Marketing planning is needed for each business. The marketing plan comprises of:
- Executive summary
- Current marketing situation
- Threats and opportunity analysis
- Objectives and issues
- Marketing strategy
- Actions programmes
- Budgets
- Controls
Executive summary presents a brief summary of the main goals and recommendations of the plan for management review helping top management to find the plan’s major points quickly.
Current marketing situation describes the target market and the company’s position limit including information about the market, product performance, competition and distribution.
Threats and opportunities analysis assess major threats and opportunities that the product might face.
Objective and issues states the marketing objective that the company would like to attain during the plans term.
Marketing strategy outlines the broad marketing logic by which the business unit hopes to achieve its marketing objectives and the specific of target markets positioning and marketing expenditure levels.
Action programmes spells out how marketing strategies will be turned into specific action programmes that answer the question like – what will be done.
Budgets are the details of a supporting marketing budget that is essentially a projected profit & loss statement.
Controls outlines some activities that will be used to monitor progress and allow higher management to review implementation results and spot products that are not meeting their goals.
- Diagram of planning cycle –
The process of developing the marketing plan provides an opportunity to review debate and develop ideas and think about the ways the venture is adapting to its environment and the challenges it faces in wining competitive advantage.
The marketing planning cycle examine and analyse the environment and marketing systems in which the enterprise operates. It also identify the options open to the firm i.e. what business the firm is in and what the customers needs which underpin this business.
It also asses and mobilize resources at the firms disposal that can help identify these options, bringing out those most capable of being met by the firm and the different advantages that the company may have in this process.
The basic marketing plan can be drawn by a diagram which has been depicted
Below:-
Figure: The basic marketing plan
- SWOT analysis for marketing planning –
SWOT is the acronym for strength, weakness, opportunities and threats and is in effect a distillation of all the steps and consideration that should be taken to formulate an effective corporate strategic plan.
A relevant SWOT analysis for the marketing of plasma television has been concluded below-
Strength:-
This Consumer Electronics Company is an established company. The company has highly efficient technical staff, adequate financial resources, and an enthuastic sales force. The Consumer Electronics Company has a reputation for producing high quality products that common premium prices. The new product i.e. the plasma television has an ability to mount on any load-bearing wall split the screen into different segments allowing different channels to view at the same time and touch sensitive control.
Weakness:-
The most important weakness of the Consumer Electronics Company is that its consumer products do not readily biodegrade. Another weakness of the company is the inadequate research and development programme in both internal and external resources.
Opportunities:-
There are some opportunities ahead of the consumer electronics company which are a new market opening up that could be filled from existing resources. There is another opportunities for this company is that the new product can be exported to overseas countries.
Threats:-
The Consumer Electronics Company may face some threats from out side such as – changing technology, thrusting competition especially from other established electronic producers and beyond these, the company & political uncertainly. Another major threat is that the consumer income upon which the total sales depends.
Conclusion
From this report we can conclude the following statements:
- A successful marketing of a new product depends upon several things like goal setting, choosing of distribution channel, sales promotion and motivating the consumers.
- The success of marketing depends monthly upon advertising and securing an ideal place for reaching that product to the ultimate consumer.
- The cause of rising and falling in sales can be found through marketing research.
Finally the future of a new product depends upon accomplishment of several jobs which could be clearly understood by reading this report.
Bibliography & references –
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Introduction to marketing (sixth edition); Kotler P; Armstrong G; prentice hall (USA) 2003.
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Basic marketing – principles and practice (fourth edition); Tom Cannon; Cassell publishers ltd. (UK) 1996.
- Getting more business; Sallyann Sheridan; How to books (UK) 1999.
Websites-
