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D2 - Improving the validity of marketing research
Transcript of D2 - Improving the validity of marketing research
In this assignment I will make justified recommendations for improving the validity of the marketing research used to contribute to the development of Virgin Group's marketing plans.
Their competitors /primary/ - The primary research in the form of questionnaires were given at The Euston and Bond Street train station as the researcher thought that there are many people and also many potential respondents that can be selected. Their competitors /secondary/ - The secondary data was collected again by different sources such as Newspaper, Internet, the home page of Virgin and other organisation surveys. The information collected also gives insight in to Virgin Group’s Brand management.
The market environment
The market environment /primary/ - Again, the primary research about the market environment was collected from questionnaires that were answered from people at different age and level of education.
The market environment /secondary/ - The secondary research is collected from sources such as case studies, documents of the company which are on the Virgin homepage. However, it is not easy to say how up-to-date the data or the trustworthiness of the sources is.
Research method that can be used
Another research method that I recommend Virgin can use is face-to-face interviews. This would be very useful for Virgin as face-to-face interviews help with more accurate screening. The individual being interviewed is unable to provide false information during screening questions such as gender, age, or race. It is possible to get around screening questions in online and mobile surveys. A face-to-face interview is no doubt going to capture verbal and non-verbal ques, but this method also affords the capture of non-verbal ques including body language, which can indicate a level of discomfort with the questions. Face-to-face interviews can no doubt capture an interviewee’s emotions and behaviors. Similar to not being able to capture verbal and non-verbal ques, online and mobile surveys can also not capture raw emotions and behavior.
Virgin Group is using two research methods - Primary and Secondary research method. Those two types of the market research are the main ones. They both include data that is used when finding out about the needs of the customers and buying habits. Primary research is directly collected data from the customers. Secondary research is data that exists already or is collected for another purpose. This may be used when back up primary research.
Customer behaviour /primary/– Virgin collected this data by using survey method. This research is made in the form of a questionnaire to find out the attitude of the customers towards the company. They’ve been 6 questionnaires sent to people at different level of education and age. Customer behaviour /secondary/ - The secondary research has collected the data from different sources such as textbooks, case studies, Richard Branson’s biography, interviews, documents of the company, etc.
D2 - Improving the validity of marketing research
Two of the analytical methods that Virgin is using is SWOT Analysis and PESTLE Analysis. SWOT analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an organisation. Specifically, SWOT is a basic, straightforward model that assesses what an organisation can and cannot do as well as its potential opportunities and threats. PESTLE analysis is about the political, economical, legal and environmental analysis. PESTLE analysis evaluates how various aspects of the surrounding of a business may affect the activities or operations of the business. PESTLE analysis concerns examination of the external environment of the organisation.
Limitations of Analytical methods
SWOT Analysis - To significantly impact Virgin's performance, business decisions must be based on reliable, relevant and comparable data. However, SWOT data collection and analysis entail a subjective process that reflects the bias of the individuals who collect the data and participate in the brainstorming session. In addition, the data input to the SWOT analysis can become outdated fairly quickly. PESTLE Analysis - Virgin often restrict who is involved due to time and cost considerations. This limits the technique's effectiveness as a key perspective may be missing from the discussions. Users' access to quality external information is often restricted because of the cost and time needed to collate it. Assumptions often form the basis for most of the data used, making any decision made based on such data subjective.
Analytical methods that can be used
Another analytical method that I recommend Virgin can use is Forecasting. A variety of business techniques are used in business forecasting, which anticipates future scenarios to aid business leaders in decision-making and choosing business plan options. An example of a non-quantitative forecasting technique is the Delphi method, which relies on the collective intelligence of a group of experts who answer rounds of questions that are ultimately summarized into experts' opinions and forecast predictions. In order to keep your customers satisfied you need to provide them with the product they want when they want it. This advantage of forecasting in business will help predict product demand so that enough product is available to fulfill customer orders. By using business forecasting to look ahead, wineries are able to make sure they always have product available for the customers to purchase.
Virgin is using five marketing techniques - Segmentation, Targeting, Positioning, Branding, Relationship Marketing. Advantages of
- Virgin can spot and compare marketing opportunities. Virgin can also examine the needs of each segment and determine to what extent the current offering satisfies these needs. Segments which have low level of satisfaction from current offerings represent excellent opportunities for Virgin. Disadvantages of
- Segmentation increases costs. When Virgin attempts to serve several market segments, there is a proliferation of products. Cost of production rises due to shorter production runs and product variations.
is typically advantageous for small companies, as marketers can better match marketing strategies with core customers. There are, however, certain disadvantages to target marketing. It is expensive and time-consuming.
- Successful branding, such as Virgin, normally leads to strong profit margins. As opposed to low-cost providers who target price-conscious consumers, companies that invest in branding usually focus on quality and service benefits. By building a brand image that is valued by quality-concerned customers, you can command higher prices in the marketplace. When combined with effective cost-control measures, your profit margins are optimized in this scenario. A primary drawback of branding is that it costs money to develop and promote a strong brand. As noted, companies that build strong brands do so over time through regular investments in advertising. Additionally, they invest in market research and product development to be able to offer high quality.
- In positioning a product within a market segment, marketers should try to maximize the share of consumer choices attained by their product in order to achieve long-run profitability for the firm. Strategies that can help marketers to maximize share include adding features desired by consumers or advertising to improve consumer perceptions. Both of these strategies can be costly, however, so it is important for companies to balance the cost of making such expenditures with the payoff.
- Customers who develop a relationship with Virgin will share their opinions more often. After all, if they trust Virgin, they will expect them to listen to them. This will motivate them to tell about opportunities they see for improving products or services. This customer feedback can be invaluable. And if Virgin act on it, they prove to customers that they really do listen. That can raise their opinions of Virgin to even greater heights. The main problem with this one is that it can be expensive. Customer service can get costly fast, as can promotions if they fail to pique Virgin's customers’ interest.
In conclusion, I would say that Virgin is up-to-date with information about their consumers, competitors and market environment. As everything has its minus
, Virgin has also its advantages and disadvantages of using SWOT and PESTLE analysis as well as analytical methods and marketing techniques. Marketing techniques used by Virgin increase the demand of Virgin's product successfully.