SpotOn seeks to introduce a variable to an established product that provides a unique service to the customer. The unique service, slip prevention, is the source of competitive advantage for the customer. The company wishes to investigate two significant issues relating to the product. The first is the potential of the product for sale to corporate customers such as schools and hospitals. The corporate customer base may be smaller than the general public, but it is highly lucrative due to the volume of purchase per customer. SpotOn also needs to investigate the viability of the product on the mass market, including placing the product in supermarket chains. Based on the above, SpotOn needs to conduct two parallel research studies for the two targeted market niches. Since SpotOn is targeting the entire US market, sampling would be more convenient than a census due to cost implications (Malhotra, 2012). For corporate customers, the company can use convenience sampling, then apply clustered sampling for the mass market research.
The Necessary Data to be Collected
SpotOn will need to conduct two research processes for the two sets of data that it needs to collect for launching its special anti-slip paint. The first set of data is the reaction of corporate clients to the new product. The data needs to be practical and comprehensive, hence the need for a trial for the product, then feedback from substantial sample of the target market (Malhotra, 2012). The second set of data relates to whether the mass market customers would prefer to buy the product from the supermarket chains. This component of the research assumes that the mass market is already interested in the market. Indeed, before, SpotOn developed the product, it would have conducted market research on the relevance of the product to the market (Luchs et al., 2016). At this juncture, the company only needs to investigate the best sales channel for the product. This second component of data is more of an opinion to be used to determine how best to get the products to the target market.
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Data Collection Methods to be used
The two sets of data that SpotOn needs to collect through its marketing research are quantitative as they involve numbers and ratios. Qualitative data is the kind of data that characterizes the target or approximates a component of the prerequisites of the sample group (Malhotra, 2012). For example, if SpotOn wanted to know how the target market feels about the product, this would be a qualitative research project. In the instant scenario, SpotOn is interested in numbers and ratios in both of its research projects. In the first component relating to the corporate customers, SpotOn needs to know the ratio of the market that is interested in buying the new product (Malhotra, 2012). The answer to this question will enable SpotOn to determine whether to start marketing the product to corporate clients. Further, this answer will determine the kind of corporate clients that the company should approach. On the second question, SpotOn needs to know the ratio of the target market that would prefer to buy the new product in the supermarket chains. This answer will determine if SpotOn will approach the mainstream supermarket chains for sales deals.
Sampling Methods
SpotOn will need to select two different sampling methods for each of its two research processes. Sampling is a process through which a researcher selects a representative group to study when studying the entire target group is not feasible (Fields, 2012). The Sampling method is the option the researchers elect to use in the sampling process. Since the two research processes vary exponentially, SpotOn will have to employ two different sampling methods. The convenience sampling method would be the most suitable for the corporate customer research process (Malhotra, 2012). For this segment, the research process is expensive as it involves providing free samples to the target customers. Since the free sample is paint, SpotOn may also need to provide technicians to paint samples of the floors. Using convenience sampling will enable the researchers to select the least expensive and most opportune locations. For the mass market research process, SpotOn can use the simple random sampling method (Malhotra, 2012). The target for this second research is substantial, as it includes homeowners from all over the USA. Secondly, the research process is not as expensive as it involves getting the target customers to respond to a simple question. Further, SpotOn needs a national representative sample, which makes the simple random sampling process the most feasible.
Samples and Sample Sizes
The samples and sample sizes for the two research projects will differ as they stem from two different sampling methods. For the corporate client research, SpotOn should acquire a list of possible clients which are available for sale from research firms (Steward et al., 2019). The company can then select possible corporate sample members from different parts of the nation. Based on the cost of undertaking the research, including providing free samples, SpotOn can arrive on a research sample. Regarding the mass marketing research project, once again, SpotOn should acquire a national list of potential customers from a research firm (Steward et al., 2019). Using random sampling software, SpotOn should select between 10000 and 20000 sample members. The large number and random process will ensure national representation.
Conclusion
Since SpotOn needs data regarding both corporate clients and the mass market, it will have to undertake two research processes. Similarly, when SpotOn begins its sales, it will still use two different marketing approaches for corporate customers and the mass market, respectively. For the mass market, SpotOn can use convenient sampling to select a small group of opportune organizations that will allow the company to paint a segment of their floors. For the mass market, the company should use a random process to collect a large volume of data for processing. Both research processes will be quantitative, and the results will guide the company on how to roll out its sales.
References
Fields, R. (2012). The statistical sampling morass-Getting it right from the start. J. St. Tax'n , 31 , 13-45
Luchs, M. G., Swan, K. S., & Creusen, M. E. (2016). Perspective: A review of marketing research on product design with directions for future research. Journal of Product Innovation Management , 33 (3), 320-341.
Malhotra, N. K. (2012). Basic marketing research: Integration of social media . Pearson.
Steward, M. D., Narus, J. A., Roehm, M. L., & Ritz, W. (2019). From transactions to journeys and beyond: The evolution of B2B buying process modeling. Industrial Marketing Management , 83 , 288-300.
