For the survival and successful existence of an organization in the market, it is important to collect and analyze primary external data about a market. Marketing intelligence is the information with the help of which a firm can perform assessments of the opportunities of the market entry and formulate development plans accordingly (Trim, 2004). The present report analyzes the concept of marketing intelligence thereby considering all the important aspects relevant to it. Discussions have been made on buyer behavior, market research techniques, competitor analysis and assessment of the response to the customers.
The following are the main stages of the purchase decision making process:
Need recognition- A consumer develops a need or want to satisfy it. It is at this point that organizations such as Tesco can determine the needs of the target market and manufacture products which are capable of fulfilling that need.
Information search- This is the stage which is characterized by consumers searching information so that they can make a decision to purchase (Trainor, Krush and Agnihotri, 2013). Personal sources are used by thee consumers to explore information along with public, commercial and experience sources. By considering the information on various sources, firms Tesco can plan its advertisements and promotions accordingly.
Evaluating alternatives- At this stage, the consumers assess the various alternatives available to them in this way they seek the best alternative.
Purchase decision- After the alternatives have been evaluated by the consumers, theymake decisions regarding the purchases they will make and where they will make them (Cacciolatti and Fearne, 2013).
Evaluation after purchase- At this stage, the consumers make decisions whether their need was satisfied with the product or not. Thus they assess their purchase decision.
Buyer behavior consists of the decisions making process of the buyer with respect to the purchase and usage of goods. The following are three theories of buyer behavior:
Cultural theory of buying behavior- This theory of buyer behavior says that cultural influences affects the buying behavior. Culture of an individual is determined by the beliefs and values that he learns while living in his community (Nwokah and Ahiauzu, 2009). These values and beliefs give birth to certain specific buyer behaviors. Buying behavior is also affected by the membership of a person with his family. Apart from that, relationship of a person at work or school also has impact on buying behavior. Firms such as Tesco can utilize this theory for dividing its market into different segments on the basis of customer attitudes.
Generic theory of buying behavior- As per generic theory, consumer follows a standard model of decision making for making judgment about the purchases. This process includes need recognition by the buyer, information search, evaluation of alternatives and final purchasing (Blythe, 2008). Considering this model, it becomes important for the companies such as Tesco to identify the feelings of consumers after they have made the purchase. With this information, the consumers can be satisfied by Tesco which will make him purchase the brands in future.
Environmental theory of buying behavior- As per this theory, consumer exhibits different buying behaviors in different situations (Johns and Doren, 2010). There may be a situation when consumer may compare the prices of different products in the market. Another situation may be when the consumer is tired enough to compare the price and may buy a product even at higher price. Using this model, products could be designed by Tesco as per different situations.
The following factors influence behavior of the buyers:
Cultural factors- Culture as well as the subculture of a person affects the buying behavior. With every country having a different culture, the buyer behavior is different (Jenster and Søilen, 2009). Subcultures consist of various geographic regions, racial groups, religions etc. Based on these cultures, Tesco can segment the markets and sell its products accordingly.
Personal factors- There are various personal factors such as age, occupation, lifestyle, personality characteristics, economic situation that have influence on the buyer behavior. As such, Tesco can use these factors to design products suited for different having same personality characteristics.
Social factors- These factors are inclusive of various groups that exert influence on the buying behavior of a person (Hedin, Hirvensalo and Vaarnas, 2011). These groups are family, reference groups peer groups etc. these are external influences that affect the decisions that a consumer makes regarding purchase of a product.
Psychological factors- Various psychological factors such as perception and motivation also affect the buying behavior. These also include the learning that an individual has had form past experiences. Based on this learning, the consumer makes choices about the products.
Brand loyalty, corporate image and repeat purchasing are closely related to each other. A brand is a unique symbol, deign, sign or a skillful combination of these that helps in identifying a product and differentiating it from the competitors product. In this regard, brand loyalty is the preference that consumers have for a particular brand. It is this loyalty for a brand that makes a consumer purchase it again and again in future. Considering the corporate image of Tesco, consumer think about it as a company that makes what matters better (Core Purpose and Values, 2014). In this way, as per the consumers, the company makes products that reflect the changes that society has undergone in recent years. The corporate image of Tesco is reflected in the form of a friendly grocer that makes products suiting to the consumer needs. Customers thus relate to it with the refreshing and convenient stores that it has opened up. Following this, the consumer reconsiders the brand, revisit its stores and increase their loyalty with Tesco. Brand loyalty is the commitment that consumer makes to repurchase (Anderson and Mittal, 2000). This is reflected in the form of repeated buying of goods. Thus it is the corporate image that determines brand loyalty. In this manner, there is an interrelationship between the three.
The different types of market research techniques consist of qualitative as well as quantitative techniques. Qualitative techniques consist of focus groups. These can be effective in exploring the customer attitudes. These are also present in form of interactive methods used for collecting market information. Focus groups will also help Sainsbury in efficiently determining the lost effective marketing messages that could be sent to potential customers. Another technique is one on one interview (Brookins, 2014). There can be held by Sainsbury’s over phone or with the help of web video conferencing software. These will help in getting honest feedbacks about the company from the customers. However, it is possible that the respondents sometimes not feel comfortable which may result in misleading information by them. Survey is another that is commonly used for the market research. These will be effective in collection of ideas and information from the consumers. These present the benefits of being distributed by mail or online. However, they may present several costs to Sainsbury as sometimes it will have to provide incentives to the respondents.
The following is the pan for obtaining information in the given situation about Sainsbury:
Background- Sainsbury has grown to become one of the largest retailers of UK. The strong values as well as the culture of the company underpin five areas of its focus. The company has over 1000 stores and puts customer at the heart of everything it does. Research is to be conducted to investigate the reliability of the above statements.
Rationale- The following research will assist Sainsbury in knowing whether the promises made by it are being fulfilled in the appropriate manner.
Objective of research- The objective of this research will be to find the level of satisfaction among the customers of Sainsbury.
Data analysis section- Analysis of the qualitative data will be done with the help of thematic analysis.
Sainsbury can assess customer response by using two techniques such as face to face questionnaires and focus groups. Face to face questionnaires present a form of personal interview. It will be effective in enabling the researcher to obtain deeper information with regards to the customer (Blackwell and et al., 2001). With this, the company will be able to assess the buying behavior of customers. These questionnaires will present the company with other advantages such as longer and better observation of behavior of the customer. Also, this technique will be effective in enabling the respondents to express their views in detail. However, with this technique of market research there will be high costs involved. This is because face to face questionnaires are generally more expensive as compared to other techniques.
Another technique that can be used for assessing customer response will be online questionnaires. These can be used for exploring the level of customer satisfaction with respect to Sainsbury. This will involve inviting the respondents on the World Wide Web and getting the questionnaires filled by them (Bryman and Bell, 2003). This technique is effective as it will provide a faster way of collecting data thereby providing ease of data collection. Also, large number of customers will be able to present their views as to how satisfied they are with the company. This technique also involves fewer costs. However, this technique suffers from a disadvantage in the form of absence of the interviewer
Various secondary data sources can be used so that the marketing research objective of finding out the level of satisfaction of Sainsbury customers could be achieved. In this context, magazines can serve as a reliable source of information. It will be used for obtaining information about the efforts company makes towards customers and the important aspects related to customers that Sainsbury considers during its business operations (Erasmus and et al., 2001). Magazines will also be helpful in gaining knowledge about the views of the customers. News papers will also be used as a source of reliable and valid information about how far Sainsbury goes in keeping customers at the heart of its business activities. Apart from that, journals can also be a source of data for the research.
The success of the completed survey intended to find out the level of satisfaction of Sainsbury’s customers can be reviewed. While reviewing this, the success of the survey will be measured with the help of the objectives that it has achieved. The survey proved to be successful to the extent that it could take out the views of the customers form them (Gilbert and Veloutsou, 2006). However, some customers were hesitant to talk about their experiences with Sainsbury that proved to be a small hindrance in successful completion of the survey. Open ended questions went a long way in pleasing the customers as they could express their views about the performance of Sainsbury. Double barrel questions were avoided and only one question was asked at a time which helped in clarifying the responses.
The validity and reliability of the findings of the present market research can be evaluated in the following manner. Customers sometimes provide misleading information. Hence in this regards, the findings of the market research cannot be considered to be reliable. Also, these carry some limitations which lead to a compromise on validity and reliability of findings. Interpretation of the findings of market research is not accurate (Peter and Olson, 2008). These are probable due to which the findings are unable to make accurate predictions. However, as the research was conducted in natural settings, the findings are valid. Also, research was conducted with the help of online venues which further added to the validity of the findings. Use of innovative market research techniques made the findings reliable and valid. Also, care was taken to conduct the research in the most natural settings which helped in getting original response of the customers. This made the findings reliable.
An environment in which exchange of goods and services occurs between the buyers and the sellers is known as a market. Assessment of the market size trends of the retail market of UK has been done. UK retail market stands at the position of being the third largest in the world. This market has the capacity to effectively generate 8 per cent of GDP of UK. Employing around three million people, this market efficiently provides jobs to more than 10 per cent of the workforce of UK (UK Trade and Investment, 2013). Main players of UK retail market are Tesco, Sainsbury, ASDA and Morrisons. As compared to this, the main players in the sector of domestic appliance are Dyson, Argos and Curries. The current economic market acts as a turning point for UK economy. In this regard, the retail market is experiencing the main trend in the form of being cost effective. Another trend which the market is depicting is reassessment of the store portfolio. The requirement of this trend is owing to the changing consumer behavior as well as rising costs of operating the stores and growing online opportunities for the firms. The retail market is ranked as the third most developed online retail market of the world. Hence, the new trend of the market is online retailing.
Competitor analysis has been planned and carried out for Nokia. The pan will include assessing the objectives, assumptions, strategies and capabilities of the competitors. The main competitors of Nokia are Apple, HTC, Samsung, Blackberry etc. the competitors of nokia such as apple and HTC have successfully moved towards smart phones and androids. In this regard, the existing iPhone and other new phones in the market will give intense competition to the new smart phones like Nokia Lumia. The activities of the competitors have dropped the market share of Nokia to 29 per cent. The strategies adopted by Apple and its new moves and innovations have made it popular which is likely to take a toll on the market share of Nokia. As such, Nokia will have to compete with its competitors in the market of mobile phones (Competitive rivalry, 2014). Nokia made a slow entry to the market of smart phones with its new smart phone Nokia Lumia. As a response to this, its competitors have made planned moves and introduced phones with superior features as was done by HTC. Considering the competitors and their strategies, Nokia can adopted various approaches to influence the behavior of competitors and gain advantage. It can plan effective promotions and communications plan. Also, investments in research and development will have to be made by Nokia for keeping in pace with the competitors. It can also influence the behavior of its competitors by designing promotional campaigns and providing incentives to the customers.
Marketing intelligence is the everyday information that is relevant to the markets of a particular organization. This is the information that is collected and analyzed for enabling the organization in making confident and accurate decisions in terms of the market opportunity, penetration strategy, and development metrics etc. Analysis of the buying behavior can help a firm in designing its strategies accordingly. Information about competitors, which also forms a part of marketing intelligence, provides significant assistance in formulating plans to gain competitive advantage.