In order to develop a suitable marketing strategy for increasing customer traffic and finding a suitable marketing segment for the new product.
2. Guidelines for market research and data collection
A market research and data collection for the new product line and to develop suitable guidelines for assisting SpotOn with the data collection, market research and market strategies development.
When an ideas for a product is conceived, marketing research is the initial step in the marketing process. SpotOn should focus on marketing research to obtain accurate information from the market place and used to solve problems, determine needs of consumers and acquire information on competitors. This helps in the determination of crucial variables about the business or product such as geographical viabilities, a merit for online strategies, and the need for the actual product among others. Furthermore, the research helps to find out the customer’s specific needs and enables companies manage the risks related with offering a new product. This survey is a direct way of obtaining qualitative and quantitative information. Errors in the survey could make problems to surface in the marketing research. (Karen & Johnson, 2007)
Market receptivity is evaluated by consumer feedbacks, test market, focus groups or beta tests prior to launching. The market research should include details on the current buying trends of the product to learn the consumers buying habits, talking to the consumers to get their level of satisfaction and what they prefer. Further, the prime challenge of SpotOn is creation of various opportunities for imparting their messages to all the stakeholders and key decision makers in the market. Besides, evaluation of the trends in the specific market, contacting professional and trade associates in the field helps in determining the demand for the product. (Audra, B. 2007). SpotOn should introduce their paint to the customers in a very straightforward manner so as to grow their sales. SpotOn knows its market well and therefore should focus on the relevant market segments. In order to access the new market segment, reconnaissance is highly critical. Therefore, a thorough study on the financial characteristics of the industry and the industry sensitivity to fluctuations are important in understanding the industry.
Some of the other necessary information on the research include; identifying the niche and size of market, the methods to use to reach the market, if competitors are making any changes, if the industry is seasonal, the speed of growth of the market, possibility of market segmentation, the current pricing of the product among others. Pricing of the product is a major issue and it is important to ensure the pricing structure is accurate and realizable. (Fredrick, S. 2005) Therefore, SpotOn should adjust the pricing as per the needs of the schools and the hotels. Furthermore, on the quest for customer information, their buying habits, income, age of home, marital status should can be important in understanding the niche market of your product. (William, G. 2000). In the case of hotels, the product should be very appealing and serve its purpose with factors like price, quality and delivery time being considered. And for schools, the paints must not be hazardous and should have less chemical content so as not to harm the students.
Data collection method should be comprehensive, a quantitative data collection and analysis through surveys, observation and secondary data can prove critical during implementation. (Aliaga & Gunderson. 2005). Moreover, the sampling method to use should be the one that effectively meets the goals of the study. It is determined depending on the list of research goals, the method that may effectively meet the goals, further testing the ability of the methods to meeting the goals and finally choosing the method that does best to achieve the goals. The sample size should be chosen carefully to represent the total population as much as possible and also should depend on the niche market of the product. (Mendez, F. 2003) If the niche is a big population, the sample size should be big enough to cover a substantial part of the population to obtain a true analysis of the product research study. A good sample size should be able to show results that reflect the target population very precisely.