Basic marketing research
Marketing research is a business strategy that is focused at providing information about the consumption patterns of a product. As a business tool, marketing research enhances decision making through the provision of relevant information regarding the marketplace. It answers questions of who will buy the product and the expected quantity to be bought. Basic marketing research involves interviews, questionnaires, focus groups and direct feedback as the major tools for conducting the research.
How heuristics affect consumer decision making process
Heuristics refers to strategies that are adopted by individuals in decision making process. They range from general to specific and vary from one individual to another. Based on the information acquired, they enable individuals to make instant decisions or delayed decisions. When shopping the price heuristic can be used in combination with the representative heuristic for economy, speed and convenience.
Market fragmentation and why it is a concern to marketers
Market fragmentation refers to specific portions of the market that are independent and self-sustaining where a product or commodity is performing well. A fragment may be a portion of a large market. Market fragmentation is essential to marketers as it enables them to customize and tailor a product for a specific market. They also provide actual, quantifiable results that shows the performance of a product in the market. Understanding market fragments leads to a successful marketing strategy to be implemented.
Major steps in the target marketing process
Targeting a specific market is essential for the success of a new product in the market. Target marketing is a sequential process that is enhanced and made a success by the following steps; analysis, planning, implementation and lastly control. Both domestic and international marketing strategies are influenced by an understanding and effective implementation of the above steps.
Why are materials that represent a small percentage of the total cost of manufacturing a product more likely to have inelastic demand than major components?
Elasticity refers to the measurement of the response of an economic variable in relation to another economic variable. Changes in one material affects the changes in the other in terms of price. Materials that are used on a small proportion in production are more likely to experience an inelastic demand since a drastic change in the overall cost of the final product will have a small change in the cost of the materials. This is due to the small proportion used in the production. Therefore, an increased demand in the product will not have significant effect on the material demanded.
Changingminds.org,. (2014). Market Fragmentation. Retrieved from: http://changingminds.org/disciplines/marketing/understanding_markets/market_fragment ation.htm
Dietrich, C. (2010). Decision Making: Factors that Influence Decision Making, Heuristics Used, and Decision Outcomes. Student Pulse, 2(02). Retrieved from http://www.studentpulse.com/articles/180/2/decision-making-factors-that-influence-decision- making-heuristics-used-and-decision-outcomes
Toolkit.smallbiz.nsw.gov.au,. (2014). The Marketing Process. Retrieved from: http://toolkit.smallbiz.nsw.gov.au/part/21/103/474