LO3 Be able to assess market size and future demand
Q3.1 Assess the size and the trends for a market of your choice.
The market of a particular product consists of the potential buyers of the product in a particular geographic area. The market of the product also consists of the other organisations offering the same product to the consumers as the competitors (Bettman, 1991). The market also consists of several resources that are used by the organisation to successfully carry out its marketing procedures and actions according to its marketing strategy along with its business functions.
Australia can be considered as the market for a particular product. The size of this market can be defined as the area of the country which is around 7.7 million square kilometres. The sixth largest country in the world, Australia is consists of 6 states and 2 territories.
The lifestyle of the people in the country is very good because of the low cost of living, good educational systems, good social systems and extensive beneficial plans from the government of the country. Australia is home to people of various cultural backgrounds and beliefs. So the current trends in the country are based on the good lifestyle and diverse cultural background of the population of the country.
Q3.2 For an organisation of your choice, plan and carry out a competitor analysis.
This is a process of the marketing strategy of the organisations which allows the organisations to determine, analyse and observe the current and potential competitors in the market helping them to anticipate the actions of the competitors (Chen, 1996).
This is a concept which divides the companies in a particular industry according to the similarity in business models or business strategies used by the companies. This allows the companies using similar strategies to be grouped together (Bettman, 1991). Strategic group analysis allows the companies to determine their direct competition and the basis of the competition along with the opportunities in the market.
The strategic group analysis of the company Nestle reveals its competitor to be Kraft foods. Both of them belong to the industry of coffee consumer goods and the industry group of “2095 roasted coffee”. Nestle consists of only two coffee brands which are Nescafe and Nespresso. But Kraft foods have nine different coffee brands.
Q3.3 A Chinese mobile phone manufacturer wants to enter the UK market with its new smart phone handsets. (This is a hypothetical organisation used for the purpose of assessment.)
Evaluate this organisation’s potential opportunities and threats in the UK.
A Chinese mobile manufacturer wants to enter the UK market with its new Smartphone handsets. The organisation will get some opportunities along with opposition from the Smartphone manufacturers currently holding shares in the UK market.
Market: The number of cell phone users in the UK is increasing day-by-day. The current figures suggest that half of the cell phone users in the UK are using Smartphone. Apple is holding the highest market share in the UK which is almost 30 per cent of the Smartphone market with its iPhone range. Samsung and HTC are gaining market shares at 24 per cent and 20 per cent respectively. They are accompanied by Blackberry having less than 17 per cent of the market. So the major threats of the Chinese mobile manufacturer are Apple, Samsung and HTC which are settled in the market for quite some time with their wide range of Smartphone.
Some of the major challenges for the Chinese mobile manufacturer will be to persuade the population in the market to be interested in their product and to understand the benefits of the product according to its price (Stávková, 2008). Making the people in the UK Smartphone market realize the positive price-to-performance ratio is another challenge the Chinese mobile manufacturer has to face. First they have to position their brand as reliable, cheap and authentic.
LO 4 Be able to measure customer satisfaction
Q4.1 Evaluate how you would assess customers response using the following two techniques;
1) A face-to-face questionnaire and
2) An online questionnaire.
Questionnaire is a method of market research which consists of several questions of different types to a group of people or general population. The purpose of the questions in this method is to collect as much data about the market as possible from the customers. The questionnaires are generally cheaper, simpler and easier than some other types of surveys. This can be done by using several techniques, such as face-to-face and online questionnaires.
The face-to-face questionnaire allows the interviewer to be physically present to ask the questions to the interviewee directly. Face-to-face questionnaires are conducted when they are absolutely required (Chen, 1996). There are several advantages of the face-to-face questionnaires, but there are a lot of costs associated with the process as well. Face-to-face questionnaire follows a standardized questions and answers pattern.
Advantages: The face-to-face questionnaire allows the interviewer to ask several complex questions and to help the interviewee to understand the question. The interviewer can perceive the facial expression, body language and gestures of the interviewee to decide which questions to ask and how to ask those questions. The face-to-face questionnaire allows the collection of some data that can’t be collected from any other source.
Disadvantages: The cost of conducting such questionnaires is very high. The process of face-to-face questionnaires also takes a lot of time and a limited number of people can be interviewed in a particular amount of time (Stávková, 2008). The required number of interviewers is also high. The interviewee in this type of questionnaires can also get influenced, biased or affected by the interviewer to compromise the quality of the data.
This type of questionnaire is conducted on the digital media. The usage of social networking sites, search engines, websites and blogs is done for the successful operation of the questionnaire.
Advantages: The time taken by the process is less in comparison to the total number of people going through the questionnaire. There is no requirement of having a large number of interviewers or a particular venue for the process to undergo. The people don’t get affected by the process and tend to answer honestly by being assured of anonymity.
Disadvantages: The direct interaction with the interviewee is not possible in this type of questionnaire. The quality of the questions can’t be enhanced depending on the response to previous questions.
Q4.2 For an organisation of your choice, design and complete a customer satisfaction survey. Your questionnaire should contain a minimum of 10 appropriate questions.
Customer satisfaction surveys are conducted by several organisations to get an idea about what the customers exactly think about the products of the organisations which they are using. The final stage of the buyer behaviour is the process of the customers weighing the product’s cost and the decision to buy it with the benefits and the ease of use it provides (Bettman, 1991). The questions in the customer satisfaction survey are designed in a way to ensure the collection of both qualitative and quantitative data. A questionnaire for a mobile phone manufacturer like Nokia is provided in the next segment containing different types of questions.
- What is the model of the mobile phone you own?
- Which of the features of the mobile you like the most?
- Build quality
- Battery backup
3. When did you last receive any after sale service from our organisation?
4. Which of the following services have you received?
- Accessories change
- Firmware update
- Resetting the mobile to an earlier version
- Change of cabinet of the mobile
- Are you completely satisfied with the solution provided by the service centre? Yes/No
- Is the problem with your mobile completely solved? Yes/No
- How satisfied are you with the overall service provided to you?
- Very satisfied
- Very unsatisfied
- Would you recommend any of your friends and colleagues to receive our service? Yes/ No
- What can we improve in our service?
- What did you like the most about the service you received?
Q4.3 For the organisation you used in Q4.2 above, review the success of the completed customer satisfaction survey.
The customer satisfaction surveys are conducted by the organisations to determine the mind-set of the customers regarding them and their products or services. The questionnaire associated with the customer satisfaction survey is designed in such a way that the questions cover all the aspects of the usage of the product or service (Chen, 1996). The questions are also designed to collect both qualitative and quantitative data. The number of respondents for the customer satisfaction survey designed in the last segment is very high. This allows a huge amount of data to be collected. This information is related to all the aspects and features of the mobiles. The customer satisfaction survey was proved to be a success as the number of people attending the survey provided the answer honestly. The objectives of the questions were met as there are a lot of suggestions for several areas of improvement in the mobiles and the services provided by the mobile company. The number of customers who received any type of service from the mobile company are also determined and documented (Stávková, 2008). The demand for a particular model of mobile from the company is also determined by looking at the number of people owning that model. Some of the common problems in some of the mobiles of the corresponding company are also identified according to the problems faced by the customers included in the survey. The training and development processes for the employees in the service centres of the mobile company are started according to the feedback from the customers. The feedback about several models of mobiles allows the company to identify, anticipate and satisfy the needs of the customers further in the future.
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