Resale Marketing Research Plan
Whether an entrepreneur just entering the market or a seasoned organization, every company should create and consistently update their marketing plan. A marketing plan does not require complexity, but it will entail multiple components in order to be effective. This paper will provide an example of an effective research study on a new retail concept that involves buying returned items from big box retailers and selling them at a highly discounted rate to consumers. This paper will define what questions the research needs to answer, identify what secondary sources can assist with answering those questions, outline the methods of primary research to be utilized for data collection, and finally, identify how the collected data will be analyzed.
Questions to Answer
When creating this list, one will need to consider many things as questions will vary based upon the type of industry. According to Patterson (2004), there are however three key questions relevant to any industry that should be placed at the top of the list. First, is there a need for this service? The answer to this will be found by researching locally within the target area to see if there are already similar providers, if so, are their customers happy with them, and can the local market handle an additional provider if others already exist? Second, who is best served by this service? Obviously, middle class to low-income families will be the target audience for the concept. Placing a discount store with damaged or opened products will not likely be needed in an upscale shopping center. Third, what items and prices would most likely attract customers. Assuming the service is located in shopping centers frequented by middle to lower-class income families, this research will focus specifically on home goods that are both necessity and sometimes considered luxury. For example, washers and dryers, indoor furniture, outdoor patio furniture, microwaves and other appliances. These are common purchases consumers will prefer to have a discount on as they can run from the low hundred to several thousands of dollars.
Sources of Secondary Research
Secondary research consists of information already put together by others. For example, searches on Google, magazines, newspapers and social media qualify as secondary research sources. While researching this returned merchandise discount store concept, additional secondary public sources will be used. The additional three public sources available are the Chamber of Commerce, U.S. Census Bureau and the Small Business Association, or SBA (Barron, 2013). The chamber of commerce will provide all free information in regards to the local community such as income types of industries in existence.
The government information provided through the U.S. Census Bureau and the SBA can provide a much broader overview. For example, the U.S. Census Bureau will provide statistics on the volume of business locally, statistics on ethnic groups and history on successful or failed businesses in the area. Congress created the SBA in 1953 with the goal of helping entrepreneurs in America succeed. "Among the services offered by the SBA are financial assistance, counseling services through Small Business Development Centers (SBDCs), management assistance through programs like SCORE, and low-cost publications. They may also be able to suggest other means of gathering the information from primary sources" ("Secondary market research", 2016).
Primary Research Methods
This research study will employ the following three primary research methods of interviews, focus groups, and questionnaires, as recommended by The Reuters (2013) website. In person interviews will allow this study to gather information about the potential customer. It will also be helpful to interview others in similar industry as they may be able to assist with questions about target customer base, the industries practices, and even competition. Answers will be in quick answer format of "yes" or "no". The goal of the focus group will be to gain feedback from sample groups about the service. A short presentation will breakdown the plan for to acquire and sell big box store returns to the consumer at a discounted price. The group will be asked if packaging matters as long as the item is still in excellent shape or if a small scratch or dent will prevent them from buying high dollar items if the scratch or dent will be hidden by placement (ex. Washer/dryer). Questions from the group will also be allowed and considered. Questionnaires can easily assist in gathering additional informational about any potential client. The questions will be formulated to identify the returned products discount store concept's target customers, which items they will be most drawn to, where they would typically purchase that item and what they expect to pay for it.
Data Analyzing
It is by collecting the discussed data that an understanding of the local market will be achieved. Without this understanding, this concept will fail. Once the data is collected, it must be analyzed to best understand the concept's potential customers, products the store will offer and the overall market. The research gathered for this purpose will be analyzed using the qualitative method. For example, the interview, focus group and questionnaire answers will be coded to allow for the results to be organized and as well as identified by possible patterns, also known as data mining. This method will not only help to identify potential problems. It will also help use the interview, focus group and questionnaire information to learn about potential customers likes and dislikes, values as well as beliefs (Barron, 2013).
Conclusion
The research gathered in this study will allow the business owner to have a larger picture of the types of products and typical services will make them a profit in business. The marketing research will predict any possible changes that will need to be made to meet customer needs. Failure to identify what secondary sources, outline the methods of primary research, and properly analyze the data collected would be detrimental the organization. It is recommended that should this concept be pursued, regular marketing research plans should be evaluated and conducted to adapt to the changing market. Answering the three key questions: is there a need, who is best served, and what products and prices do customers prefer should remain a common component of the process.
Write the first half of a marketing plan for a new product or service that is not currently on the market in 500 to 750. Include the following:
- The situation analysis including an environmental scan and competitive analysis
- A segmentation of the market and selection of a target audience