Market Research as a Critical Part of Marketing Plan

Question:

Discuss about the Marketing Fundamentals for Growth and Development.

Marketing plays a significant role in business growth and development. It is one of the most vital parts of enhancing organizational reach and creating a significant impact on consumer perception. The present study will focus on analyzing different and most crucial components of marketing and evaluate its impact on organizations. Latest example with be linked with the theories to develop a significant link between theory and its application in actual business situation.

Market research is a critical part of marketing plan. It is one of the most vital aspects of the process. It focuses on analyzing the market to evaluate the situation and changing trends within the economy. The information is examined by evaluating different forms of data such as market trends, consumer needs and demands, secondary data collected from authentic sources, situational factors etc. Market research plays a major role in marketing plan because it helps companies in updating about upcoming changes in business environment which may be controllable or uncontrollable. Marketing planning is based on market research as it helps in analyzing the situation in the economy. After undertaking market research companies develop marketing objectives and strategies. This helps in undertaking effective measures to deal with the changing situations and enhance organizational capacity to deal with rising market competition.

Vodafone is the second largest mobile operator in the world. It has developed well defined market share and consumer base in the economy. The analysis of changing situations and rising competition helped the company in developing its current market plan to sustain the competition (Vodafone revamps positioning as it moves on from ‘Power To You’, 2017). Vodafone undertook an effective market research and analyzed that technological changes are constant in the market. Taking advantage of the same the organization has revised its positioning strategy by changing its slogan. This has helped the company to review its marketing plan and objective as well. The new slogan “The future is exciting. Ready?” position the company as technologically optimistic organization (‘The future is exciting. Ready?’ asks Vodafone in new ad push. 2017.). The company has invested in rebranding in order to enhance its competitiveness within the market.

Hence the overall evaluation clearly reflects that effective and well structured market research contributes in evaluating the actual and future market situations. On the basis of the same effective and well defined strategies can be undertaken which helps companies in providing a competitive edge within the market.

Vodafone Revamps Positioning with Effective Market Research

Competition is one of the most critical characteristic of business operations. It may be defined as activity or condition whereby one is to strive in order to attain a winning edge thus gaining over others. Business growth and development demands an effective and well defined analysis of competition in order to develop strategic measures to sustain in the market. Malhotra, (2011) stated competition to e essential for the business as it creates a significant aspect of development. Different tools and techniques of competitive analysis are undertaken in order to identify the moves of rivalry firm and fight back the same in an effective manner.

According to Alter, (2010) businesses operates within the market to serve consumer needs however the idea does not remain exclusive and thus competitors adopt effective measures to manage the same activity for the same consumer base. Various factors are considered to evaluate actual competitive analysis. Porter five force analyses is one of most widely accepted tool to compare and analyze the competitive positions of the businesses in the economy. The factors which are considered as per the tools include bargaining power of buyers, bargaining power of suppliers, industry rivalry, threat of substitute and threat of new entry. All the mentioned factors help the businesses in effectively determining the competitive position of rival firms thus strategies are developed and managed accordingly.

Competition helps in product development and enhancements because it is a critical step to sustain in the market. Amazon and Netflix have reflected an effective example of the same. Netflix has developed the concept and structure of effective movie space online. However Amazon has developed the similar system which has helped its consumer base in attaining effective scope (Netflix raising prices again as competition, original programming increase. 2017). Netflix thus has enhanced its service range and movie space and quality to attain a competitive edge in the market.

Global economy has integrated the world market and minimized the trade restriction in major parts of the world. This has enhanced FDIs and international expansion of the businesses. PESTEL analysis is one of the most crucial and significant tool to analyze the uncontrollable external factors which may affect business growth and development. It has been evaluated that external factors in different countries affect business operations differently (Bartholomew and Farrauto,  2011). On the basis of the mentioned evaluation, companies develop and design their expansion strategies thus creating a significant growth aspect in the market.

Tools for Competitive Analysis

Apple is the largest Smartphone manufacturing unit in the world . The company is technologically advanced. Innovation and development is the core attributes of the organization which has contributes in the success of the company (Talib, 2013). The latest product of the organization is I phone 8. The product was launched on the global level in order to attract maximum consumers within the market. PESTEL analysis however plays a major role in designing market entry strategies for the organization. The factors examined as per the strategy are as under:

Political: Apple evaluated and identifies the political factors of the countries critically. This helps the organization in developing and planning its market entry strategies. For example countries such as Iran, Libya etc facing high political instability are considered as ineffective countries for expansion.

Economic: the organization critically examines the economic conditions of the country in order to analyze and evaluate purchasing power of the consumers. This ensures organizational success in the selected nations (Nørgaard and Dacke, 2010).

Social: This factor evaluates changing needs and perception of the consumers. Apple evaluated that countries such as USA, Australia, UK has product acceptance thus the product is launched in the mentioned nations.

Technological: Technological effectiveness of the country is critical to determine the business growth and product success of the company.

Environmental: Impact of environment on Apple I phone 8 is significantly low thus the business evaluates the factor to develop its CSR strategies in the market (Cairola, 2015).

Legal: these factors are evaluated to understand the legal obligations of the country thus product is developed and launched accordingly.

The internal and external analysis of the business is crucial for organizational development. It creates an effective and well defined means of evaluation for the companies to create a significant business impact. SWOT analysis is a significant tool to determine the competitiveness of the business. It also enhances the decision making aspects of the company. Pepsico is one of the most established and well known companies of the world (Ivanov, 2016). Well defined market planning and effective strategic management has helped the company to sustain market leadership from a long time frame. SWOT analysis of the business will evaluate its strengths weaknesses, threats and opportunities in the current era. Pepsico undertook the SWOT in order to develop an effective and well defined understanding about how the organization may develop effective measures to grow in the market. Significant brand identity and high production capacity are the major strengths which provide opportunities of growth and sustainability in the market (Talib, 2013). However market saturation and competition are weaknesses of the business which may pose the threat of market share decline for the business. Analyzing the same SWOT helped the business in developing its market plan and reshuffles its product portfolio. The launch of everyday healthy products will help the business to reconnect with consumers while managing the brand identity in the economy.

PESTEL Analysis for Global Expansion

STP analysis is considered to be the most significant aspect of a marketing plan. Effective STP analysis helps in creating a reliable and definite plan for business success. It helps in analyzing the right market, consumers and strategy for product promotion. Food industry is one of the most dynamic sectors (Nikolaou and Evangelinos, 2010). Consumers play a vital role in developing needs and demands within the economy. The industry however is changing widely as consumer needs are drifting towards healthy lifestyle. This has given a significant rise to organic food market within the economy.

STP process helps the company in finding the right market for the products. Food industry is highly competitive. Also evaluating right strategy for right consumer is crucial. Companies are thus now adopting effective STP strategies to develop and sell product in an effective manner. Organic food segment segmented the market on the basis of behavioral and demographic segments. The industry evaluated the target market and thus the product was positioned on the basis of the same to enhance its sales and demand in the market. The industry has efficiently adopted the STP process thus creating an effective impact on business development. The process helped companies in analyzing significant ways to understand and evaluate the needs of the consumers thus products are positioned and offered in a similar manner.

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Ethics is defined as an action which is undertaken by an individual as per his/her own understanding of right and wrong. Ethical business operations develop a significant relationship between companies and associated stakeholders. Ethical operations have a positive impact on different sets of people associated (Ots and Nyilasy, 2015). Marketing ethics however is a broad terminology which analyzes the right method of marketing the product within market. Ethical marketing practices focuses on providing right information to the buyers in a clear and well defined manner (Volkswagen Confirms $4.3 Billion False Advertising Emissions Settlement. 2017). The mentioned aspect is a legal implication on the business thus is expected to be effectively adopted and determined.

Volkswagen, the German automobile organization has been effectively operating in the world market. The company however was penalized for fake advertising and misrepresenting the information within consumers (Khanal and Maharjan, 2015). The evaluation reveals that the organization claimed its engine to be in accordance with the European standards. The company’s claim of meeting the emission requirement has been declared false. The advertisement about the efficiency of the car and its mileage was wrong which resulted legal implication for the company. The stated claim has cost the organization with the penalty of $32 million (South Korea Fines Volkswagen $32 Million For False Advertising.. 2016). Also criminal complaint against former CEO has been filed which effectively help the growth and business development.

Conclusion

Marketing plays a significant role in business growth and development. It is one of the most vital parts of enhancing organizational reach and creating a significant impact on consumer perception. Global economy has integrated the world market and minimized the trade restriction in major parts of the world. The overall study discusses the marketing fundamentals for the business with significant examples. The evaluation thus reflects that marketing is a critical business aspect and help in the success of the organization.

References

Books and Journals

Alter, S., 2010. Service systems and service-dominant logic: Partners or distant cousins?. Journal of Relationship Marketing, 9(2), pp.98-115.
Bartholomew, C.H. and Farrauto, R.J., 2011. Fundamentals of industrial catalytic processes. John Wiley & Sons.

Cairola, E., 2015. Back to fundamentals: Organizing, collective bargaining and promotion of a decent work framework in global supply chains. International Journal of Labour Research, 7(1/2), p.9.

Ivanov, S., 2016. Economic and marketing fundamentals of hotel chains. Routledge Handbook of Hotel Chain Management. London: Routledge, pp.19-26.

Khanal, N.P. and Maharjan, K.L., 2015. Fundamentals of Community Seed Production. In Community Seed Production Sustainability in Rice-Wheat Farming (pp. 13-33). Springer Japan.

Malhotra, N.K., 2011. Basic marketing research. Pearson Higher Ed.

Netflix raising prices again as competition, original programming increase. 2017. [Online]. Available through: <https://www.marketingweek.com/2017/10/05/vodafone-reveals-new-brand-positioning-scraps-power/>. [Accessed on 8^th October 2017].

Nikolaou, I. E., and Evangelinos, K. I. 2010. A SWOT analysis of environmental management practices in Greek Mining and Mineral Industry. Resources Policy, 35(3), 226-234.

Nørgaard, T. and Dacke, M., 2010. Fog-basking behaviour and water collection efficiency in Namib Desert Darkling beetles. Frontiers in zoology, 7(1), p.23.

Ots, M., and  Nyilasy, G. 2015. Integrated Marketing Communications (IMC): why does it fail?. Journal of Advertising Research, 55(2), 132-145.

South Korea Fines Volkswagen $32 Million For False Advertising.. 2016. [Online]. Available through: < https://www.ndtv.com/world-news/south-korea-fines-volkswagen-32-million-for-false-advertising-1635126/>. [Accessed on 8^th October 2017].

Talib, F., 2013. An overview of total quality management: understanding the fundamentals in service organization. Browser Download This Paper.

‘The future is exciting. Ready?’ asks Vodafone in new ad push. 2017. [Online]. Available through: < https://www.cnbc.com/2017/10/04/reuters-america-the-future-is-exciting-ready-asks-vodafone-in-new-ad-push.html>. [Accessed on 8^th October 2017].

Vodafone revamps positioning as it moves on from ‘Power To You’. 2017. [Online]. Available through: <https://www.marketingweek.com/2017/10/05/vodafone-reveals-new-brand-positioning-scraps-power/>. [Accessed on 8^th October 2017].

Volkswagen Confirms $4.3 Billion False Advertising Emissions Settlement. 2017. [Online]. Available through: < https://www.adweek.com/agencyspy/volkswagen-confirms-4-3-billion-false-advertising-emissions-settlement/123676>. [Accessed on 8^th October 2017].