What are the differences between business and consumer market research?
The marketplace has continually been revolutionized by the continued consumption of data on various aspects of the market including job market trends, customer trends and demographics and legal, social and political trends. Data and metadata must therefore be continually collected, analyzed and interpreted to give projections that are important for organizational growth. Market research is a process that is used to collect and interpret data that is in turn used in the development, implementation, and monitoring of marketing plans of a firm. There are significant differences between consumer and business markets research that have to be considered while conducting a research project. For instance, a consumer market research focuses on the elements such as the demand of the customers, the targeted consumers, tastes and preferences of the consumers, and the consumer segments.
On the other hand, a business market research focuses on the business model applied and the competitive strategy of the company in comparison to other companies. Therefore, it is imperative to have an understanding on these differences to be able to develop suitable strategies for the PANELpro’s consumer and business markets. When conducting business research, business marketers must have in-depth knowledge of their customers’ requirements. This is because business markets have become global in nature and for this reason, market and consumer requirements must be met in the case of PANELpro.
What should be the marketing research objectives for PANELpro?
The marketing research objectives for PANELpro are to expand the business operation and acquire more clients. This is a feasible objective since the company has so far supplied its potential business that Middleton had prior contacts. The second objective is to carry out a market research to determine the potential customers, their needs and wants. This objective can be achieved by carrying out a research that explores the current market trends. This objective can also be used to determine whether other buyers in the market were concerned with the problems established by Middleton. The third objective is to asses alternative marketing and business strategies that can be used to propel the company’s profitability. The company has not been profitable and for this reason, assessing alternative marketing and business strategies can be beneficial in increasing the company’s market share and profitability.
What are the economics of the business?
Business economics deals with problems or issues associated with a business strategy, expansion, management, and business organization. With regard to PANELpro, one economics of the business was the expansion of the business after Middleton exhausted his current customer base. Expansion of the consumer base would definitely change the initial concept of PANELpro, in addition to being required to seek new customers. Some of the questions that the company was faced with were such as should PANELpro promote low price, quality, parts, design, consulting or the combination of all these elements. Based on these illustrations the company was not aware of areas that it needed to expand its operations. Therefore, Middleton is unsure of the business model that he must follow consulting, parts distributor, assembly or design and how it should promote the business venture to new customers in the market. The problem is faced because Middleton wants to start and expand the business based on his past experiences and expertise rather than a well-tested market research and business model.
The other economies of the business is determining the possible marketing and business strategies that can be used to increase the company’s market share and address some of the problems experienced in the control business.
Can PANELpro afford to conduct research?
Two market researchers have been suggested that must be carried to promote the success of the business. Middleton has noted that the cost of conducting a marketing research is very high given that his research budgeted was pegged at $ 20,000. In this case, it may be hard to conduct the market research and spend the limited available funds. It is imperative to note that by narrowing the project substantially prior to the hire of the consultant could be an effective means of cutting down the research cost. Between the choice of a consultant and students, the most appropriate way of conducting the research for the company would be the students. His company can be used as a subject where the students can conduct a market research through telephone surveys to a sample of 25 potential customers. Based on the article, the students wanted a $500 out of pocket cost for conducting the research.
Using questionnaire surveys it would be possible to collect the necessary data by probing the potential customer wants and needs as well as the perceptions of the competition. In addition, the students can use secondary research which is cost effective as they would collect data and additional information from the internet that is related to the expenditures and financial statistics of other related companies that operate on the same field as the PANELpro. There is limited research within the North Eastern control systems industry which can be used to provide research insights on the market that PANELpro operates in. As such, the company can depend on the students for the market research that could be helpful.