Tapping into Market Research

Market research is mostly the process of gathering and interpreting information on the market on the customer needs and preferences as well as the competitor’s activities. Therefore, the result achieved will be analysed and used to formulate strategies and tactics in the business plan for actualising the concept.

Market Research and its Essence in Business plan

Market research will essentially study the consumer behavior and factors influencing the behavior so that the business plan aligns accordingly. Methods commonly used includes surveys, focus groups, and interviews to examine and identify the customers, their current preferred products, and the level of satisfaction achieved. The results of the market research will be used to formulate the business plan that will seek to addresses the gaps and exploit on market opportunities. The market research can conclude a shift of consumers taste and preference towards advanced or modern digital goods due to the increased influence of social media and the internet. Consequently, this will guide the business plan to offer an ideal product which will meet the internet or surfing needs of the market. Most specifically, the business plan will invest in internet enabled gadgets including smart-phones and tablets and set out an objective of introducing the product and vigorously market campaigning. The market research also guides the business plan on effective marketing strategies having familiarised with the characteristic and the behaviour of the target market. 

The strategy to employ for marketing the digital products need to offer added benefits and attract the potential customers into partnering with the business. For example, the business plan can exploit the internet and surfing needs of the people to strategise on selling the smart-phones or other internet enabled digital goods with a limited free data for internet surfing. Other factors that will contribute to formulating the business strategy and deserve to be keenly analysed include the market, competitors, customers, communication, and effectively segmenting the customer base to increase productivity and precision (Martynov 2017, p.207).

PESTLE Factors

Political

Political factors concern the intervention and impact of the government, its authorities and political leadership to the economy. Fundamentally, politics affect the economy of a place determining the wellness of the business; for example, political instability will negatively impact the supply of commodity or products to the market because of logistical uncertainties (Rutter et al. 2017, p.65) Therefore, the need for visionary leadership with contingency plan.

Economic factors

The economy of the market will determine the purchasing power of the customers; therefore, the marketing research will investigate the ability of the customers to purchase goods sustainably. The presence of recession and price factor of the goods will also influence consumers’ purchasing power.

Social factors

The social factors imply people’s daily interactions, cultures, and norms in their everyday life. A market can develop taste and preferences on products, which will influence or revolutionise the way they socialise. The introduction of digital gadgets like smartphones will impact on people’s morals and ethics due to the exposure to free media from people from different social and cultural backgrounds.

Technological Factors

The technological aspects will affect the business through boosting efficiency and increasing the business rate of growth and development because of process automation and quality increment.

Environmental factors

The environmental factors directly influence the policies and operations of the business. A recent need for green business to preserve the environment and natural resources will dictate the waste disposal and resource consumption strategies of the business (Atighechian et al. 2016, p.307). A technological firm dealing with phones and other communication technologies will be required to take caution on disposals to prevent acid contamination of the battery acids.

Legal factors

These are factors enacted to legislation by the politicians and enforceable by law with ability to impact the business condition. An example of a legal factor, which will influence the business activity and threaten its operation is the issue of counterfeit and warranties in technology.

SWOT analysis

Strengths

The internal factors will include the financial and reputation strengths, the location of the business and the size of the customer base. The reputation and other positives of the firm will make the company appealing to investors and other stakeholders including qualified and competent professionals (Rutter et al. 2017, p.63).

Weaknesses

The culture of an organisation can impede its growth and development, especially a firm lacking leadership culture. Weakness is mostly the business’s impediments that negatively impact the customer experience and satisfaction declaring the business non-competitive. The shortcomings of a company can also be described as the gaps, which need to be resolved to elevate the performance of the firm.

Opportunities

These are external factors or conditions which when exploited will benefit the business to achieve competitive advantage over other competitors. A firm venturing into a new market or expansion of the already existing one will give the firm an opportunity to expand its consumer base.

Threats

Threats are mainly the factors outside the organisation and beyond the control of the business thereby posing a risk to its activities and performance. Examples of threats include the competitor activities, potential unfavorable price changes. In addition, the government policies and restrictions can be devastating to a business. A crackdown on counterfeit goods, which are stock in the business will decrease the sales activity.

Segmentation, Targeting, and Positioning

The concept of segmentation majorly concerns categorising the customer base into groups of similar preferences and variables so that the business becomes effective in serving them. After that, the business researcher selects the segment with the highest potential for profits and proceeding with dealing with the consumers. In the business plan for selling digital goods, the plan will identify the segment interested and design plan of action.

Positioning

Positioning forms the last stage of this process where the business will enhance its reputation in its representation to the potential customers. Market positioning inspires confidence e in the firm because of its expertise in a given area.

Product and Branding

Total Product Concept

Mainly, this concept asserts that products offer a bundle of benefits to the customers. The core product represents the core benefit of the project, which will achieve satisfaction in the customers. An example includes introducing a delivery application with efficiency as the core benefit of the technology (Martynov 2017, p.220). The expected product implies the actual attribute will achieve the desired impact on the customer while argumentative product implies other added benefits which are not key to the consumer.

Marketing Ethics and Society

Ethics is very vital to achieving the desired outcomes. Notably, the interview sessions and other forms of handling research information should be treated with utmost professionalism. There should not be disclosure of interview data or exposing participants to victimisation. Additionally, unethical practices and vices like bribes and exploitation should not be utilised to solicit information. Essentially, the research ought to conduct its activities in strict conformity with the societal norms and morality.

References

Alfredsson, E., Månsson, J. and Vikström, P., 2016. Internalising external environmental effects in efficiency analysis. Economic Analysis and Policy, 51, pp.22-31.

Alharamsheh, D., 2017. Importance of business incubators in developing entrepreneurial ventures in Jordan. Journal of Business & Management (COES&RJ-JBM), 5(2), pp.70-82.

Atighechian, G., Maleki, M., Aryankhesal, A. and Jahangiri, K., 2016. Are macro and micro environment affecting management of fresh water resources? A case from Iran with PESTLE analysis. Materia Socio Medica, 28(4), p.307.

Martynov, A., 2017. Alliance portfolios and firm performance: the moderating role of firms’ strategic positioning. Journal of Strategy and Management, 10(2), pp.206-226.

Rutter, R., Chalvatzis, K., Roper, S. and Lettice, F., 2017. Branding instead of product innovation: a study on the brand personalities of the UK’s electricity market. European Management Review, pp. 60-67

Tugrul, B. and Cimen, S., 2016. Importance of Corporate Governance for Energy in Sustainable Development and Evaluation with Quantitative SWOT Analysis. Acta Physica Polonica A, 130(1), pp.87-89.