It is usually said that marketing do not occur in a vacuum but in a given environment (Roodman, 2008). Therefore, market environment refers to those external forces that directly or indirectly influences an organization either financially, economically or in other market oriented performance. Any change in the market environment directly creates some opportunities or threats to an organization. There are different internal and external based market environments as mentioned below. However, in order to track them an organization requires proper environmental based scanning. The scanning process involves careful monitoring of all business behaviors' to learn what goes on between buyers and sellers. Environment scanning uses marketing information system to collect any information about the market external forces.
Later the information is critically analyzed in order to establish all the environmental based changes found to help the marketer predict all business performance in future (Birn & Forsyth, 2012). The marketing managers should always be in a position to critically analyze the market before providing detailed information about the threats and opportunities that the company may face from changes in the environment. This will definitely save the company from future marked based crisis. An example of the forces includes the following political, socio-cultural, economic and cultural based market environments.
Why is it Important to a Business?
Proper analysis of the market environment can help a business stay relevant in a competitive environment (Clarke, 2011). Some of factors such as demographic based characteristics help the company know about the customers and how to address their needs. Whenever consumers' needs are met, then the organization can boast of retaining them and hence winning in any market based competition. Secondly, market environment can help an institution come up with new ideas of how to approach the market. Some of the forces that can facilitate this include the following technological advancement. By means of the market environment, business learns about cultures and beliefs of different consumers or group of people. This information helps in production of necessary goods and services that do not conflict with cultural environments of the people. In the marketing sector, it is said that consumers are won by ensuring the company targets the right audience. This will involve proper market based environmental factor analysis.
This is information either for research that is collected from the original sources through observation, interviewing or questionnaires. Usually, the information has not been interpreted or filtered by the researchers hence termed as first hand formal information. In most cases, the primary information presents the original thinking report or a discovery covered from a given period of time or place. An example of primary information includes all that information collected from interviews, mailed questionnaires and observation method.
This is information that has been collected from secondary sources such as books, biographical histories, journal articles, magazines, newspapers textbooks and commentaries. Usually, the information involves some accounts or facts that had initially been found to be beneficial and scrolled down to a paper for future references. This information tends to be manipulated and therefore it difficult to rely on when making sensitive decision such as market prediction. In most cases, they have been found to be commentaries or discussion of some initially made evidences and hence the users must be keen to know the sources before using it to make conclusions.
What is Market Research?
Market research is an organized process at which a researcher collect valuable information that will help find out more about the proposed market, service or product. Usually the information gathered about the market helps mostly the budded entrepreneurs make wise and profitable based business ideas and decisions. The information can be collected from the primary sources or secondary documents discussed above. The key to successful business is to conduct successful based market information which is relayed to the production departments hence eventually quality products that meet consumer's needs are created. The outcome of this is a high profit. Most of the entrepreneurs are making mistakes by guessing the consumer's demands in the market without making some careful market research know what exactly is wanted. All relevant information about the product is usually obtained through extensive market research.
You are the general manager of a country club. You plan on renovating the banquet area. Design the following:
- Select three methods to collect Primary data;
- Come up with three questions for each of your Primary data choices Target Markets.
Primary data can be collected with the help of numerous methods, but only three are mainly used. Collection of data from primary sources ensure that the market researcher rely on credible information in making any rational market based information. Some of the methods include the following.
Direct Personal Observation
This is one of the general methods of collecting primary data and involves the researchers directly collecting the clients, customers, informants before enumerating the data from them. The novelty of this method is that it is simple, highly accurate before the information collected from the first components and little biasness is noticed. However, where the investigators do not have other respondents, there are high chances to experience data manipulation.
- What observed special features attracts youth in the banquet areas?
- How can we decorate the banquet area?
- Which items should be included in renovating the items?
Indirect Oral Interviews
The primary data is collected from the interviewers through interviewing them. This method is mostly used when the interviewees are few, and it is easy for the interviewers to contact them. Mostly, the information will relate personal life of the person being interviewed and hence interviews are taken to do this better than any other form of primary data collection method. This method has been found to be highly time saving, less costly, highly accurate desirable to the investigator and highly inspiring especially when the topic involves market based achievements.
- What your take in renovating the banquet club area?
- Should the club renovate the current banquet area or construct a new one?
- How well can we improve the banquet area apart from renovating?
- Mailed Questionnaires method.
This is another commonly used method of collecting information from primary sources. Here, the data is collected from the respondents through some questionnaires. A questionnaire is a form of a document prepared by the investigators containing some research based questions which tries to ensure something about the respondents. Usually, all the questionnaires mailed do possess some formal requests before send to the respondents. The formal requests explain aims and objectives of the study.
- What are some of the renovations deemed necessary in banquet area?
- Have you ever spent some time in country club banquet area?
- What is your Gender?
What Sample Of People Will You Use?
In the selection of the sample to use from a certain population, it is essential for the researcher to know the targeted audience. Usually, in case of a country club that aims to renovate a certain banquet area, the main sample of targeted individual should be 100-200 youthful people who are aged from 20-45 years because they are the one who actively participates in the use of banquets for wedding and love affairs.
Why do you believe Green Hotels are so popular now? Is a green hotel one of your considerations when choosing a hotel?
They are environmental friendly because they encourage guests to reuse towels, reduce carbon emissions and use of rooftop solar panels. They are part of my consideration because I advocate any facility that conserves environment for our future generation.
Find a hotel website that markets being green. Provide me with the website link and tell me how it's promoting being green. Can you also guess who their targets market(s) are?
The hotel is currently struggling to provide some environmental friendly banquets that are displayed through web browsers in order to attract single men and ladies. In addition, it tries to attract the honeymooners. The Nottingham Hotel has doubled the number of customers since the introduction of green based hotel selection facilities.
How It Works
Using Geographic Segmentation, give three examples of how a national chain will vary its menu or offerings to appeal to the region the restaurant or hotel is in. Come up with your own examples and don't use examples from the book.
Different people have different cultures and perception about various foods. Therefore, the national chain will change the menu or offerings depending on the region of the restaurant or hotel for instance a hotel located in Arabian region will not contain bacon or pork foods because Muslims do not eat pork. Therefore, the hotels will try to vary their foods based on the origin and regions of the people.
Using Gender segmentation, explain how have hotels redesigned their properties to sell to the business woman?
The green based hotels are currently setting up separate ladies rooms that contain females based items such as wardrobes, mirrors and other items found to attract ladies. Moreover, soft foods that are demanded by the ladies are also listed in the menu. Other facilities include flower gardens for couples and dating ladies.
What did Mr. Colwell learn in his focus group with children?
He engaged the children with some gifts and stories to learn more about their behaviors' and what they wanted parents to buy them. In the process, he learnt about their cultures and requirements hence eventually deliver what they like most in the hotel.
What is the role of the kid's coordinator at Friendly's restaurant?
The kid's coordinator at the Friendly Restaurants was tasked with all duties of ensuring the kids visiting the hotel got proper and decent attendance especially on food service and games. He planned all schedules that pertain to kid based games.
Give an example of something you have seen a restaurant or hotel do to cater to children.
Some of restaurants and hotels are providing children based swimming facilities and boating riding games. On other occasion, they provide some gifts such as sweets and chocolate to the children hence attracting them.
Using Income segmentation, explain why the upscale restaurants in suburbia not do as well as upscale restaurants in the cities?
Cities contains the largest number of people found to have a high level of income compared to the sub-urb and therefore those hotels located in the urban centre do better in terms of sales compared to others.
List and describe three ideas that would attract this group to your hotel or restaurant. (Selected group: Young singles wanting to meet the other young singles)
- Flower gardens-in most cases ladies who are single prefer to meet single men in flower gardens. Therefore, existence of such facility in the hotel will do a favor in attracting them;
- Presence of variety of food stuffs in the menu. There are different kinds of foods in the restaurant ranging from soft drinks and other delicious based facilities. Thus, this attract a lot of young men and ladies;
- Spacious residential rooms with hot water and other recreational based facilities. These are found to attract a lot of single ladies.
Using Behavioral Segmentation, describe what hotels have done to market to honeymooners?
Some of the hotels have created spacious rooms with flowers and other love daring facilities to attract honeymooners. Some of the facilities includes; swimming rooms, boat riding among others.
It is essential for us to admit that the green hotels are increasing at an alarming rate and therefore all restaurants owners must take an initiative to bring in hotel reforms. However, extensive market researchers must be contacted so as to meet the desired consumers' needs.