Question

Question 1:

Read the following situations and decide if the situation described is a symptom or a problem. If it is a symptom, provide an example of what the underlying problem might be. If it is a problem, provide an example of what symptom we might see.

Alcatel, a flip-phone manufacturer, discovers its phone's features are viewed as inadequate by target consumers.
Abercrombie & Fitch discovers its sales are falling short of its goals.
Time Warner Cable discovers its customer satisfaction scores declined for the third year in a row.
PacSun discovers its advertisements during Golden Girls reruns are not reaching its target market.

What role does exploratory research play in the marketing research process? How does exploratory research differ from other forms of marketing research?

Answer 1

`1st Situation

Alcatel's phone features are viewed as inadequate by target customers

Its a problem faced by Alcatel company as the features of their mobile phones are viewed as inadequate by the target customers. Now if this is the problem then the symptom, we might see

Their sales will drop down and will lose the customers to the competitors as if the customer's needs are better met by competitors. This will lead to decrease in the market share the future effects will be less loyal consumers. As in the mobile phone industry, new technology and features are the keys. customers always want innovation in their phones and there are many major players in the industry which are innovating at a higher pace and giving the latest features and technology to the consumer. In that segment, if a company is not able to give the latest technology to the consumers will definitely lead to losses and that too very rapidly.

2. Abercrombie and Fitch discovers its sales are falling short of its goals

It's a symptom which is faced by the company and there can be many underlying problems leading to this symptom

The major problem might be the company is not going with the new trend of styling which is the present demand of the customers as the company focuses on high-class casual wear which is targeted towards age group 21-24. Now with this target audience, keeping up the latest styling is most important. It might be possible that the company is not able to match the pace of innovation required with the styling and their competitors are able to meet the demand of the consumers

3. The customer satisfaction scores have declined for the third year in a row

This is a symptom which company is facing and there will be a problem associated with declining customer satisfaction. The major problem might be that the company is not able to understand what exactly their customer wants. What are the features a customer wants now and the company is not able to fulfil these needs and their customers are getting dissatisfied?. This thing is happening in recent three years so they need to identify what is the change in need of customers have come in these years and how their competitors are able in fulfilling the demand of consumers.

4. The advertisement of PacSun during Golden girls are not reaching its target market is a problem for the company and the symptom of this problem will be less effective marketing and branding of the company. As the branding of the company involves reaching out to their target customers with their offerings. now when the company is not able to reach out to their customers, they will not be able to showcase their product to their consumers and this will impact their sales as well in the future. As the company is focussed towards giving the new culture styling clothes to their target market and in advertisements, the company showcase their styling but as they are running this on golden girls, they are not able to reach out to the market they want to reach which leads to fewer impressions of the product

Market Reseach is basically divided into 3 broad categories

1. Exploratory Research

2. Descriptive Research

3. Causal Research

Exploratory research is a very important part of any marketing as well as business strategy. It helps to understand the new areas of potential growth, an alternative course of action, new company issues and areas which will require more extensive approach. It is important because it gives a very broad view of the dynamic environment in which a company can invest its resources which will be beneficial for the company in near future. It is more focused towards the longer future aspect of the company and gives the direction in which a company needs to move.

It is different from other forms of market research in terms of the concept as both other forms of research are orientated towards getting accurate data in any specific field. Descriptive research is quite planned and well structured which gives proper information about the particular field unlike that of exploratory research which gives the broader view of the changing dynamic environment. The methods of getting information are also different, as, in exploratory research, its quite subjective like very open-ended questions are asked which in other forms very specific to the subject questions are asked. Descriptive and causal are more quantitative in nature while the exploratory is mostly qualitative in nature