ASSIGNMENT

Q.1. Short Questions: (21)

i. How important is it for a business to assess the market trends within a given market?

Analysis of market trends is important because it provides the business with the ability to uncover
opportunities within a given market. This aids in knowing what customers think of organizational
products and it improves communication and messaging platforms with customers.

It is one of the key methods of improving customer satisfaction as well as knowing what factors affect
marketing strategies. Below is a list of the most notable reasons for conducting a marketing analysis:

 Understand the value proposition of the product being offered

 Understand consumer needs for the company’s product and price settings

 Know the promotional advertisements or message which should be used

 Know the channel of distribution

 Know what opportunities and problems exist within the market

 Identify the market potential of your company by understanding market and consumer
dynamics

 Forecast your sales by evaluating the size of existing and potential consumer base

 Access capital by indicating the market potential of your products or services

 Formulate strategies to achieve both short-term and long-term business objectives

 Assess your business performance by benchmarking your offerings against those of competitors

 Estimate the price of your offerings by analyzing consumers’ need and their willingness to pay

ii. Discuss different types of market research techniques.

In business, information can serve as the foundation for successful strategies and models. Having
extensive and accurate market research allows you to better understand your target audience, fill
any gaps in your market, learn from your competitors and allocate your resources in the most
profitable ways. There are various methods of market research that can help you collect the
information you need to give you an advantage in the marketplace.
The two major categories of market research are primary research and secondary research. Every
method of market research falls into one of those categories. Both primary and secondary market
research fulfill the same purpose, but they differ in how they collect information. The differences
are:
Primary market research is a combination of both Qualitative and Quantitative Research which is
a process, where organizations employ a third party to carry out relevant studies to collect data.
The data collected can be qualitative data which is non-numerical data or it can be quantitative
data which is numerical or statistical data.
In conducting primary market research, two types of information are gathered which are
Exploratory and Specific. Exploratory research is open ended, where a problem is explored by
asking open ended questions in a detailed interview format. Specific research, on the other hand,
is more pinpointed and is used to solve the problems that are identified by exploratory research.
Secondary research uses information that is organized by outside sources such as government
agencies, media, chambers of commerce etc. This information is published in newspapers,
magazines, books, company website, free government and nongovernment agencies etc.

There are several specific methods of research that can be used to collect market data. These
include:
 Surveys
With surveys, companies reach out to participants to answer questions. They can be conducted in
various ways including:
 Phones: Company representatives make calls to ask people to respond to a series of
scripted questions.
 Mail: The organization sends written questions to people's mailing addresses.
 Online: The organization reaches out to participants by email or with a link to an online
form that they can fill out.
 In-person: The company speaks with people they encounter in high-traffic areas. In-
person surveying allows participants to sample products or services.
 Focus groups
A focus group is a moderated discussion where a group of individuals participate. Individuals
who represent a consumer demographic are gathered, asked questions and responses are
recorded.
 One-to-one interview 
This method involves personal interaction in the form of an interview, where the researcher asks
a series of questions to collect information or data from the respondents.
 Ethnographic research
This type of in-depth research is conducted in the natural settings of the respondents. This
method requires the interviewer to adapt himself/herself to the natural environment of the
respondents which could be a city or a remote village.
 Qualitative interviews
A qualitative interview will combine both elements of the focus group and one-on-one survey. It
involves speaking with one participant at a time and recording their responses.
 Social media listening
With social media listening, researchers can search for topics of discussion and analyze what
consumers are saying.
 Observations
In market research, observation refers to the act of studying how consumers actually behave as
they shop.
 Field trials
In a field trials, companies allow users to use a product under normal conditions and then
collects data provided by the participants.
 Competitive analysis
Competitive analysis is a secondary market research method where a company collects and
analyzes information about competitors in the organizations market. It involves identifying both
the primary and secondary rivals to the business and determining their offerings, profits,
marketing strategies.
 Public data
Public data is a secondary market research method which involves seeking and analyzing
market-related data that's available to the public.
 Purchased data
Companies that do not have the time or resources to conduct their own market research can
purchase research data from various sources.
 Sales data analysis
Analyzing sales data can be a helpful secondary market research method to show the
relationships between a business's strategies and sales. It can give insight into the buying habits
of consumers in your market and help spot consumer trends.
 Public sources
Public sources like libraries are an effective way of gathering free information. Government
libraries usually offer services cost free and a researcher can document available information.
 Commercial sources
Commercial sources while being reliable are expensive. Local newspapers, magazines, journal,
television media are great commercial sources to collect information.
 Educational Institutions
Not a very popular source of collecting information but most universities and educational
institutions are a rich source of information as many research projects are carried out there than
in any business sector.

iii. Explain the factors that affect buyer behaviour.

A large number of factors influence the behavior of buyers. According to Kotler et al, 2008.
They are classified these as:
 Psychological factors
 Social factors
 Cultural factors
 Personal factors
 Economic factors
 Environmental factors.

 Psychological Factors

The following are the important psychological factors:

 Consumer Needs and Motivation

 Perception
 Learning
 Belief and Attitude

 Social Factors

The major social factors are as follows:

 Reference Group
 Role and Status
 Family

 Cultural Factors

Culture determines and regulates our general behavior. The major cultural factors are as follows:

 Culture
 Sub-Culture
 Social Class

 Personal Factors

Personal factors are unique to a particular person. These factors include demographic factors and are as
follows.

 Age
  Stages in the Life Cycle
 Occupation and Economic Status
 Life Style
 Personality
 Self-Image

 Economic Factors

The various economic factors which determine consumer behavior are as follows:

 Personal Income
 Family Income
 Income Expectations
 Savings
 Liquidity Position
 Consumer Credit

iv. Assess the validity and reliability of market research findings.

Reliability and validity are concepts used to evaluate the quality of a research undertaken. They
indicate how well either methods or techniques or tests measure something. Reliability is
concerned with the consistency of a measure while validity is concerned with the accuracy of a
measure. Reliability is defined as the degree to which a measurement is error-free and provides
consistent results over time. It is possible for a measurement to be reliable without being valid.
However, if a measurement is valid, it is usually also reliable. Reliability refers to how
consistently a method measures something. If the same result can be consistently achieved by
using the same methods under the same circumstances, the measurement is considered reliable.
Validity refers to how accurately a method measures what it intends to measure. It refers to the
ability of a measurement scale to measure what it proposes to measure against the degree to
which it is free from systematic and random error. If research has high validity that means it
produces results that correspond to real properties, characteristics, and variations in the physical
or social world.
A measurement needs to be reliable to be valid, but not the opposite.

v. What is meant by “target market”? 

A target market is a group of people with shared characteristics that a company identifies as
being potential customers for its products. Identifying the target market informs the decision-
making process as a company designs, packages, and markets its product. Companies use target
markets to understand potential customers and craft marketing strategies that help to meet the
business and marketing objectives.
Target market may be broadly categorized by age range, location, income, and lifestyle. Many
other demographics may be considered. Their stage of life, their hobbies, interests, and careers,
are all to be considered.
Some examples of target markets and products that might be marketed include the following:  
 An action figure targeted to boys aged 9-14
 A pair of vegan running shoes created from recycled materials targeted at eco-conscious
athletes aged 24-45
 A high-end, direct-to-door meal kit company that targets busy professionals with
disposable income ages 30-45 
vi. Outline the key points that a marketing plan must contain.
A marketing plan is the first step in creating a successful marketing program for a new business.
Every business needs to begin with a well-structured plan that is based in adequate research,
competitive positioning and attainable outcomes. The plan should be the basis for organizational
activities over the coming months.
Every marketing plan should have the following basics:
 Marketing objectives of the business - objectives should be attainable and measurable and
should be associated with SMART, which stands for Specific, Measurable, Attainable,
Relevant, and Time-bound.

 Current business marketing positioning - An analysis of the current state of the

organization concerning its marketing positioning.

 Market Research - Collect, organize, and write down data about the market that is
currently buying the product(s) or service(s) that one sells.

 Target Market - Find niche or target markets for the product and describe them.

 Product - Describe the product. How does the product relate to the market? What does the
market need, what do they currently use, what do they need above and beyond current
use?

 Competition - Describe the product competition.

 Mission Statement - Write a few sentences that state:

 “Key market” – who you’re selling to
 “Contribution” – what you’re selling
 “Distinction” – your unique selling proposition

 Market Strategies - Write down the marketing and promotion strategies that you want to
use or at least consider using. Strategy examples include:
 Networking – go where your market is
 Direct marketing – sales letters, brochures, flyers
 Advertising – print media, directories
 Training programs – to increase awareness
 Write articles, give advice, become known as an expert
 Direct/personal selling
 Publicity/press releases
 Trade shows
 Web site

 Pricing, Positioning and Branding - From the information you’ve collected, establish
strategies for determining the price of your product, where your product will be
positioned in the market and how you will achieve brand awareness.

 Budget - Budget your money. What strategies are affordable? What can be done in house,
what needs to be outsourced?

 Marketing Goals - Establish quantifiable marketing goals which means goals that can be
turned into numbers.

 Monitor Your Results

 Test and analyze. Identify the strategies that are working.

 Survey customers
 Track sales, leads, visitors to your web site, percent of sales to impressions
vii. Why is it important for a business to plan its market strategy, keeping in view the target
market/customer?

Marketing strategy is the comprehensive plan formulated particularly for achieving the
marketing objectives of the organization. It provides a blueprint for attaining marketing
objectives. It helps an organization to concentrate it’s scarce resources on the best possible
opportunities so as to increase the sales.
Importance of Marketing Strategy include:
 Provides an organization an edge over its competitors.
 Helps in developing goods and services with best profit making potential.
 Helps in discovering the areas affected by organizational growth and thereby helps in
creating an organizational plan to cater to the customer needs.
 Helps in fixing the right price for organization’s goods and services based on information
collected by market research.
 Ensures effective departmental co-ordination.
 Helps an organization to make optimum utilization of its resources so as to provide a
sales message to its target market.
 Helps to fix the advertising budget in advance, and it also develops a method which
determines the scope of the plan, i.e., it determines the revenue generated by the
advertising plan.

Case study (9)

Mobile phones produced by a large American company are not selling as well as they were.
What information should the company research to help it decide on its future?

Marketing research plans for mobile phones help the researcher to establish market niche and
identify customer needs that have not been met. It can be an important way of determining how
customers perceive the products of a company as compared to those of competitors. It guides the
entrepreneur to determine whether to enter the market, launch a new product, promote the
current brand, optimize marketing campaign, or improve customer service. It focuses on what
consumers find deliver the most in terms of customer usage and satisfaction. In this case, the
marketing research addresses customer satisfaction, and what factors drive customer satisfaction.

The research questions will include:

 What are the factors that influence customer satisfaction?
 How can customers be served in order to satisfy them?
 What are the customers’ perceptions about mobile phones?
  What is the importance of customer satisfaction in mobile phone markets?

i) Prepare a marketing research plan for the above situation

Executive Summary
An American mobile company is focusing on the marketing of new smartphones. The company
intends to launch the smartphone business in order to boost dwindling past sales. Innovative
smartphones that come loaded with more than 30 apps and features and suit the needs of those
with a fast moving lifestyle.  These will cater to university students at an affordable price.
Advantages of products include:
 Assist the consumer to make the voice and video calls
 Provide the online browsing services assisting in communicating through the chat
messaging
 Take the advantages of an increase in the number of smartphone users launch our
smartphone company, and aim to become a distinguished leader in the distribution of the
smartphones.
 Multi-Screen Facility which help consumer to full fill their laptop demand.
 Built-in dual cell phone/Internet phone functionality and push-to-talk instant calling.
 Digital music/video/television recording, wireless downloading, and playback.
 Wireless Web, e-mail, text messaging, and instant messaging.
Situational Analysis:
Global demand for smart phones has increased at a fast pace and the reason is the need for
mobility. Mobile gadgets are more in trend as compared to laptops and PCs and more people are
incorporating them into their daily lives and work. The number of smartphone users is expected
to grow faster in the future.  The number of applications and capabilities of smartphones has
grown extensibly.
Social & Cultural factors:
In developed countries, technological growth has happened at a very rapid rate. People are more
technologically savvy and use smartphones that are loaded with applications and innovative
features. In developed countries, smartphone use is common among people in the age group of
10-75 years. The best method to market to these people is the use of digital technology. A very
large part of the population in these nations connects to the internet through their smartphones
and stays connected most of the time.
Consumer Demographics:
 Educational Attainment:- In today’s world even the people who are not well educated are
highly technologically savvy and use email and other internet based features in their daily
lives with skill.
 Income levels are adequate to purchase reasonably priced gadgets.
 Geographic area:- The main geographic areas that the company is trying to target include
continents outside of America.
 Age: – The customers of the new phones lie in the age group of between 15 to 75
 Gender:- New phones will appeal to both male and females because of its features,
innovative technology and attractive designs which will be launched in multiple color
variants so as to appeal to both the genders.
 Employment status:- The target audience of new phones include unemployed students as
well as employed professionals.
State of Technology for smartphones:
There have been rapid innovations in the field of IT and with all the large technology brands
spending a lot on research and development, overall the technology industry has seen a lot of
advancement in a small period. The smartphone brands are innovating to provide the customers
with superior experience. With smartphones growing more central to the lives and lifestyles of
consumers, the smartphone brands have loaded their gadgets with more and more advanced
capabilities. Some of the leading brands making smartphones in the market include
Apple, Samsung, LG, Huawei, Infinix, Techno, etc.
Government laws and regulations:
The legal environment in the smartphone industry is characterized by laws and licensing
agreements that have grown tough and apart from technology and patent related laws there are
several laws that are currently affecting the state of the smartphone industry.
Financial Environment:
Customers are spending more on electronic items in the major economies of the world.
Competitor environment:
There are several strong competitors of proposed brands in the market which have brought
innovative and popular products to the market. Leading the market are Apple’s iPhone and
Samsung’s Galaxy.
Competition from specialized devices for text and e-mail messaging, such as BlackBerry
devices, is a major factor, as well. Key competitors include the following:
 Nokia.
 Apple.
 LG.
 Infinix
 Samsung.
 Techno
Company Environment:
The company is American electronics and IT company with core products including
smartphones, tablets and wearables being founded and incorporated in Delaware. Organizational
products are mainly sold in the American markets but we are planning to release our new phones
in three other key continental markets.
SWOT ANALYSIS
 Strengths:
 Technological innovation – Innovative brand with strong focus on technological
innovation for higher consumer satisfaction.
 Marketing capabilities – The organization maintains strong marketing capabilities that
help promote brand and products to customer satisfaction.
 strong financial position – Currently in a  financially strong position to execute business
expansion strategies and undertake costly marketing efforts.
 Efficient Supply chain and distribution network
 Weaknesses:
 Weak presence in eastern parts of the continents e.g Asian markets
 Brand image and market share: Brand image compared to competitors is weak
 Opportunities:
 Digital marketing and supply chain – excellent marketing opportunities with the help of
digital marketing channels and techniques.
Threats:
 Heavy competition
 Legal and regulatory threats
 Marketing and operational expenses – expenses including raw material and labor costs
can reduce our profits and revenue.
STP (Segmentation, targeting & positioning)
Segmentation : – Potential buyers based on age include people in the group of 10-75.
Targeting :- Our target market includes people from the middle class and upper middle class
families.
 Target Markets
Our Ideal customer is between the age of 10-24, 25-45 and 46- 75
 Vision
The vision is to offer customers the best and the highest quality of smartphone products focusing
on personalized services by delivering convenience and rapid service by using advanced
technology to assist customers in choosing their product.
 Objectives
 Increase the company growth
 Increase the retail outlets by more than 50%
 Generate sales of $250,000 in year 1
 Increase sales to $400,000 in year 2
 Record revenue of $500,000 in year 3.

 Marketing Strategy: Marketing strategies’ will include:

 Purchasing Advertising
 Social media
 Bulletin Boards,
 Search Engines.
 Advert in trade journals;
 Trade shows & conferences;
 User group;
 Telemarketing;
 Targeted sales calls;
 Direct mailing, and
 Customer referrals.

 Sales Forecast
Our sales are forecasted to increase year by year.

https://notesmatic.com/sample-marketing-plan-for-smartphone-brand/

Kotler et al, 2018

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