Market Research Process
The market research process is conducted in several steps that start with defining the problem or opportunity and ending with taking an action. With constant change taking place in marketing and business, there is an increased risk for market research to help an organization identify opportunities and evaluate business decisions. The research thus helps in making decisions that affect the organization ( Kotler, & Keller, 2012). The first step is to define the problem or opportunity and determine the goals of the project. This step entails knowing the purpose of the research; determine the information needed and how to solve the problem identified. The organization has to translate a management problem into a research problem. For example, a management issue can be lack of sales growth, which can be made a research problem by focusing on examining the experiences and expectations of customers who determine the sales.
After identifying the problem, the second stage of the market research process is to design the research which is a plan of action outlining how to gather the information and the kind of information needed. The research design entails developing a hypothesis, making assumptions and specifying the sample and determining who should participate in the research. A sample is a subset of potential buyers who can represent the entire target market population. It may entail identifying the base population, process of sample selection and sample size. This is followed by designing data-collection techniques to record information as a third step. There are several ways of collecting data including surveys, interviews, and observation ( Kotler, & Keller, 2012) . Surveys are some of the most common tools for data collection through questionnaires, but they need to be carefully designed to achieve better results. Interviews also provide the best feedback since as the researcher interacts directly with the source.
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The fourth step is to collect the data through several methods such as interviews, surveys or focus groups. For example, an organization can interview customers about the pricing of a product or run a test on social media. Most data in marketing research is quantitative as it looks towards getting numbers and data rather than describing a phenomenon. This step allows for getting observations and data that is recorded and used in making decisions. Data collection should be unbiased and valid to get the correct information
The fifth step is to analyze the collected data and report findings that include making summaries of the data collected. Data analysis entails monitoring market trends to identify any patterns in consumer behavior based on assumptions made before the collection. The data can be summarized in the form of charts and graphs, accompanied by the creation of a final report that can be used for making conclusions ( Kotler, & Keller, 2012) . The last step of market research is to take action by presenting the findings and putting them to test. The research has provided the needed information regarding the industry and buyer personas and makes it possible to target marketing campaigns
The political-legal environment of marketers
In marketing, marketers have control over the internal marketing environment involving the four Ps of the marketing mix including the price and products to offer as well as promotion and place. However, marketers have less control over the external marketing environment. Top of these factors is the political and regulatory environment which entails the rules and restrictions on conducting business in a particular market. Every business is limited to a political and legal environment that entails laws, government agencies, and pressure groups ( Team, 2013) . This is because nations are bound to respect the sovereignty of another nation. This external environment influences and restricts a business from effective operation.
The political environment entails government institutions and other agencies that reflect the political and legal systems. On the other hand, the legal environment may contain legal systems such as rules that regulate behavior, protection of intellectual property as well as deregulation. Governments enact such regulations to protect consumers from unfair business practices though taxation policies protect companies from unfair competition as well as protect the interests of the society ( Team, 2013) . These regulations may affect the business where high taxes can increase the burden. The political culture of a country reflects the importance of the government and legal system and can make the market environment more or less friendly.
The political and legal environment thus determines marketing decisions and can either create new or restrict opportunities for some companies. As such, marketers entering a global market must comply with each nation’s laws and keep in touch with the changing regulations. Such changes may entail views on taxes, equity dilution, and expropriation that may affect the operations. They need to establish a good working knowledge of the major laws in a specific market if they want to navigate the maze created by these political and legal environmental factors. They need to understand the major laws protecting competition, marketers and the society by reviewing the procedures and promulgating ethical standards to guide their operations.
Marketers need to know everything about the legal and political environment of the country before entering a new market. For example, they need to understand different regulations and laws that they need to obey and those that can limit their capability to be successful. Such laws include those covering issues of environmental protection, pricing, competition and product safety regulations, and which may require an organization to adapt to these aspects before operating in a new market ( Team, 2013) . This way, the marketers can be in a better position to comply with them and avoid getting into any legal tussles.
An example of a political and legal environment is a case of Apple whose major sales contribution comes from outside the United States. The revenue from foreign countries is higher than what the company receives from the home country, which means any political insurgency in such countries, can affect their position negatively. As such, marketers should ensure they understand the legal and political regulations of such countries. For instance, political unrest in China can significantly disrupt Apple manufacturing operations since it immensely depends on low labor cost in the country. China has also been imposing increased regulation that can affect the market of Apple products in the country.
The socio-cultural environment for marketers
Developing a marketing strategy is a challenging task due to the ever-changing marketing landscape. The values and attitudes of consumers are in a state of constant flux where what was preferred a year ago seems to be out of style today. As such, marketers need to be always updated on the changing waves in regards to consumer needs and purchasing behavior. There is a zero chance of survival if they stick to the same style every year all over the world as they may feel out of place with the consumers. One of the aspects determining the design and implementation of marketing strategy are the social-cultural factors that include insight into the needs and wants of societies and the changes in populations, ethics, and religion ( Team, 2013) . Marketers have to appeal to these socio-cultural factors when designing their marketing campaigns to avoid getting into trouble with the target market. They should, therefore, design marketing campaigns that suit a particular region based on its socio-cultural environment.
Social and cultural factors are crucial for marketers when planning to create and implement a marketing campaign for a firm. These factors tend to have diverse impacts on consumer behavior and marketers have to market products that correspond to the social and cultural needs. They influence the segmentation and target consumers while allowing the provision of products and services that meet their needs. This is because a marketer gets to understand the societal changes and preference shifts. As such, monitoring the social-cultural environment provides marketers with a critical insight into the needs of society and consumers ( Team, 2013) .
The social-cultural factors include education, language, religion, customs, and lifestyles which are connected to the buying habits of many people. For example, there have been monumental shifts in the makeup of the American workforce with more women getting employment opportunities. This presents new marketing opportunities as women are no longer classified as homemakers. Religion is another important cultural aspect that marketers need to put into consideration as it influences consumption, demand and buying behavior of customers. A good example of respecting the social-cultural aspects is when fast food restaurants are forced to tropicalize their menus in India by avoiding selling beef meat due to the cultural aspect of cattle. As such, marketers need to pay greater attention to different religious beliefs in their marketing campaigns in avoiding getting into conflicts that may result in losses.
Furthermore, marketers have to stay tuned to the social and cultural factors that can affect sales. This may entail paying attention to generational gaps and the differences in their consumer behavior. Members of a certain generation tend to share common experiences and values that are different from members of another generation. As such, marketers need to put such aspects into consideration. Marketing development, product pricing, and promotion activities have to take into account the socio-cultural factors of the target audience such as their level of education and income status since marketers are bound to be influenced or restricted by the socio-cultural environment and should analyze specific environments before designing their marketing strategies.
The value chain in businesses
Value chain refers to full range activities that businesses conduct in adding value to a raw material into a finished product though designing, producing, marketing and distributing of a product from the manufacturer to the consumer ( Gereffi & Fernandez-Stark, 2016) . The model is used to describe processes by which businesses add value to the raw materials to create a finished product. The value chain is a concept that entails a collection of activities that a company performs to create value for its customers while creating a competitive advantage. It focuses on linking systems and activities to demonstrate their effect on costs and profits. This concept focuses on the systems and activities with customers in creating value, rather than relying on accounting expense categories. The goal is to recognize activities that are most valuable to the firm and capitalize on them, as well as identifying those that could be improved in providing a competitive advantage.
Value chain analysis allows a company to visually analyze its business activities and determine how it can create a competitive advantage. As such, businesses conduct value chain analysis by identifying how to increase efficiency in the chain and deliver maximum value for the least possible cost. At the same time, value chain analysis can help an organization to gain a better understanding of its abilities and identify areas for improvement. By conducting an analysis, the organization can understand how its competitors create value and decide on outsourcing some services. The analysis entails identifying the parts of the production process, determining steps to eliminate or improve in creating the best value for customers.
In conducting this analysis, the company can focus on cost advantage by identifying the cost drivers for primary and support activities and how to reduce the costs ( Gereffi & Fernandez-Stark, 2016) . Alternatively, a company can identify activities that create most value to customers and prioritize them to increase value. After discovering the strategies, the organization then evaluates them to improve value focusing on customer service and adding product value.
There are primary and supportive value chain activities for the project. The primary activities have an immediate impact on the production and sales while the secondary activities support them. The primary activities include inbound logistics, production and outbound logistics. The inbound logistics are a process involved in the internal distribution of raw materials and deal directly with suppliers ( Gereffi & Fernandez-Stark, 2016) . It involves the acquisition of resources that will be converted into finished products. These materials are converted into finished products under the production stage that involves adding value to the product and moving it through the production line. Once the product has been manufactured, it passes through the outbound logistics that entails distributing them to the market. Here the product is distributed to customers and other outlets to allow for sale. At the same time, marketing is involved to ensure the product reaches the correct consumer group through the use of promotional mix. These activities are supported with the infrastructure at the company, human resource, technology as well as procurement.
Dyson case study
Market-oriented mission statement
A mission statement is a summary that states the aims and values of a company and what the business intends to accomplish. An effective mission statement guides a company in answering its purpose and their value. There are several types of the mission statement, with a market-oriented statement focusing on how the business intends to satisfy the basic consumer needs that may include the durability and ease of use. On this note, the mission statement for Dyson may entail: Our company engages in promoting user efficiency and problem sharing by ensuring the personal and global environment for our customers is conducive to productivity . This mission statement focuses on telling the customer that using Dyson products can ease their lives and satisfy their needs. This is because the product lines share the commonality of improving user’s physical space while eliminating waste in product design and development.
Goals and objectives
The goals and objectives of the company from the case study are summarized in the marketed-oriented mission statement that includes providing high quality, innovative and environmentally responsible solutions to consumers. The first objective is to deliver real customer benefits that make it easier for customers to use and enjoy. Secondly, the objective of the organization is to improve the existing products while focusing on providing solutions to the current identified challenges facing customers. At the same time, Dyson should have a goal of inspiring excitement regarding the quality of their products and their ability to perform mundane tasks.
Business portfolio
Yes, Dyson Company has a business portfolio, defined as a collection of brands, investments, products and services that a company provides. The company’s business portfolio includes a wide selection of fans, hand dryers, and vacuums. The products offered in the company include Air Multiplier and an Air blade Tap
Marketing mix techniques
The marketing mix is a term used to refer to different tools that an organization uses in eliciting a positive response from its target market. The marketing mix may range from brand awareness through promotions, affordable costs, convenience as well as the functionality of the products. The corporate objective of Dyson is to develop products that can help consumers achieve their everyday tasks effectively and promptly. The company can use several marketing techniques to elicit a positive reaction from consumers. The marketing techniques should emphasize the ability of the company to deliver on its corporate objectives.
Additionally, rather than using slick promotional ads to get to its customers, the company places a more focus on product quality and their functioning. The product quality plays a crucial promotional role in telling customers why they need the products and how they will help them in making their lives more fulfilling. The company has also adopted the use of social media in marketing its products in trying to reach a larger audience. This entails monitoring the social media interaction and product review in understanding the performance of their product and then uses this information in focusing their marketing.
Customer-centered
Yes, Dyson is a customer-centered company since it focuses mostly on developing quality products that can address the specific needs of customers. For example, the company stated how their Air blade tap can provide clearly communicated solutions to challenges that consumers face and make their lives easier. The company claims its products solve these problems, for example by reinventing ways of washing hands in ways no other product can achieve. As such, it is predominantly customer-centered rather than profit-centered.
References
Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: a primer.
Kotler, P. T., & Keller, K. L. (2012). Marketing Management 14th Edition. México. Editorial Pearson .
Team, F. M. E. (2013). PESTLE Analysis. Strategy Skills. Free management ebooks , 15.
