3 2 Market Research example essay topic

1. Introduction 1.1 Purpose The purpose of this report is to get all of the management employees of Proton in all of the departments outside marketing to familiarize with what marketing is and also to show its importance in the company. 1.2 Background Proton is the biggest Malaysian automobile manufacturer. Proton automobiles are available in many countries such as China, Singapore, Australia, Algeria and United Kingdom.

Proton has commanded the local automotive market, and will continuously dominate in the pursuit of being 'Customers' Number One Choice for Automotive Products and Services' (web info / overview /company info. php? currentSceneSec = 0101¤tScene = 0100¤tButton = 1). 1.3 Scope Getting to know the definitions of marketing and also the importance of marketing and how does it contributes to the profitability of the company. 1.4 Method Information has been gathered through research of websites, journals and books as well as own interpretation and ideas on how marketing is seen important in contributing to the profitability of the company. 1.5 Assumptions It is assumed that other management employees in other departments of Proton, who have no or little idea about marketing, would be able to understand the importance of marketing after the report is read.

It is also assumed that the profitability of the company will increase after reading the report. 1.6 Limitations The limitations are mainly the inflexibility of time and also the amount of research that needs to be done to write a good report. 2. What is marketing? Marketing is a very general term that has no specific definition to it. However, it is best described as "A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others" (Kotler, Brown, Adam and Armstrong, 2004, p 919).

It is an understanding of how the company works with its consumers and how it generates in the society. Marketing is seen to be the process of 'bringing in the businesses'. It is not seen to be an alternative, but a necessity (Forsyth, 2004, pg 34). Many people consider marketing as a tactic. However it is more than just a tactic. Marketing is analysis.

According to Allen Weiss (2002), marketing is the analysis of customers, competitors, and a company by incorporating the understanding of competitive analysis and company capabilities into a general understanding of what the existing segments are. It is crucial in marketing to have a clear knowledge of the needs, wants and demands of the consumers. To achieve this, market research is carried out. By going through a market research, Proton can find out more information on what consumers think of Proton's product.

Upon getting the information, Proton can make adjustments and improve products to satisfy consumers' needs, wants and demand. 3. Why Marketing is Important " Marketing management is accomplished by carrying out marketing research, planning, implementation, and control" (Kotler, 2004). Marketing plays a major role in every business. It is very important as it contributes to the profitability of the company itself. "Relationship marketing involves creating, maintaining and enhancing strong, value-laden relationship with customers and other stakeholders.

"They must build strong economic and social ties by promising and consistently delivering high quality products, good service and fair prices", (Kotler, Brown, Adam and Armstrong, 2004, p 11). Furthermore, when both customers and producers are mutually beneficial from this relationship, profitable transactions will follow. Knowledge of marketing strategy and market research is crucial in order to excel in marketing. 3.1 Five key factors to an effective marketing Forsyth (2004) stated five factors which summarizes the effectiveness of marketing. a) Customer oriented.

Company needs to focus on the wants and demands of the consumers. Profits come only after the consumers are satisfied. b) Continuously deployed. Marketing must be ready all the time as the company operates. c) Effective coordination. Marketing must logically co-ordinate its activities with the involvement of other departments and senior management team. d) Creativeness. Creativeness is needed during competitive times.

By adding creativeness, marketing will be stronger. e) Underpinning culture. What makes marketing possible is not only depended on the people in marketing, but also the contributions from professional staffs in other departments are indeed needed (Forsyth, 2004, p 36-37). 3.2 Market Research " Marketing Research is the function that links the consumer, customer, and public to the marketer through information -- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process" (Kotler, Brown, Adam and Armstrong, 2004, p 213)". By 1957... as markets moved from seller to buyer, new ideas of 'marketing were taking hold. Companies began to grasp the importance of understanding what the consumers really wanted; it could no longer be assumed to be the same as it always had", (Valentine & Gordon, 2000, p 185) Marketing research is basically the function that connects the consumer, customer and public to the marketer through information. There are four steps of market research.

The first step is defining the problem; this is the hardest step of market research. If an inexperience manager define the problem wrongly, the whole market research will be affected hence the information will be inappropriate. Once, the problem has defined, the manager should determine, the research objectives which may fall in the three categories such as exploratory, descriptive or casual research. The second step is designing the research which will consist of determining what information should be gathered and how data will be collected. In this case, the data can be primary data collection or secondary data collection. The third step is implementing the plan which usually can be done by the internal staff or external firm.

After the plan has implemented, the raw data will be prepared in order to get the information. The last step is interpreting the data; the researches will need to present the overall information to the marketing manager to be carried out to the next marketing process. It is important for Proton to find out the demands of certain cars from the consumers and their satisfactory level with the products as Proton manufactures a number of different models. With this information, Proton can make changes or come out with a new car. For example, Satria Limited Edition was released as Satria was very popular among the consumers. Proton halted the production of Putra as its sales were very low.

Information and data collected from market research could be able to assist the employees of the Financial Department or the employees from the Human Resource Department in decision making. Besides this, it also makes decision making of the top management to plan and manage the company easier. 3.3 Marketing Environment It is important to determine the environment that the company is working in. The marketing environment refers to the actors and forces outside the marketing management's skills to cultivate as well as maintain successful transactions with targeted customers (Kotler, Brown, Adam and Armstrong, 2004, p 164). Certain environmental complications and issues can severely affect the profitability of the company. Environmental complications and issues include the breakdown of economy (local economy and international economy), inflation, boom, trend, customer's dissatisfaction and others.

The company should be able to adapt to such changes of the environment, or else the company's profit will significantly decrease. This would affect the company's growth as well as driving off loyal customers. 3.3. 1 The micro-environment It could simply be defined as the forces nearest to the company, which affect the company's capability of serving its customers. Certain types of micro-environments that the company needs to take notice of are, for example, other departments, major suppliers, marketing representatives, customers and competitors (Kotler, Brown, Adam and Armstrong, 2004, p 164). Most of these environments can be 'controlled' by the company itself. For example, Proton could increase or reduce their purchases from major suppliers. 3.3.

2 The Macro-environment " The macro-environment consists of the larger societal forces that affect the whole micro-environment - demographic, economic, natural, technological, political and cultural forces", (Kotler, Brown, Adam and Armstrong, 2004, p 164). Most of these cannot be 'controlled' by the company. For example, collapse in economy of Australia, one of the countries where Proton is active. This will cause Australia to import less Proton cars, thus a fall in Proton's export and fall in profits. Government intervention is another example. Proton gets subsidies from the Government and able to compete with foreign car companies through cheap prices of cars.

3.4 Marketing Segmenting, Targeting, Positioning " Market segmentation is the act of grouping customers in markets with some heterogeneity into smaller, more similar or homogeneous segments" (Dib b and Siskin, 2001: 229). There are four variables that the business can choose to segment their markets; geographic, demographic, psycho graphic and behavioral variables. The business can choose to segment in one variable or a combination between two or three variables. However, in order to achieve an effective segmentation, the business should have the characteristic of mensurability, accessibility, and substantiality and action ability.

The next step, the business has to decide on which market segment they should target on, which classified of undifferentiated marketing, differentiated marketing or concentrated marketing. Once a business has decided which segments of the market it will enter, they must decide which 'positions' they want to occupy in those segments. Product position means "the way the product is defined by consumers on important attributes; the place product occupies in consumers' minds relative to competing product" (Kotler, Brown, Adam and Armstrong, 2004, p 363). They can position their products according to specific product attributes, benefits, users' occasions, certain classes of users, against a competitor, away from competitor and product classes.

In brief, by dividing market into a group of consumers who have a similar needs and wants, the business can achieve consumers's atisfaction easier rather than if they concentrate on broadly market. Hence, when the business can satisfy the consumers, the consumers will develop a brand loyalty. 'Customers can't fully give loyalty until they believe a company genuinely cares about them and cares about their needs" (Hein, 2004, p 24). Moreover, as brand loyalty has formed, the business will be able to receive a profit, which should be supported with accurate product positioning. 3.5 Marketing Mix Marketing mix is a set of "controllable marketing variables that the company combines to produce the feedback it wants in the targeted market" (Kotler, Brown, Adam and Armstrong, 2004, p 109). Marketing mix consists of 4 Ps - Product, Price, Place and Promotion.

Product is defined as "anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need" (Kotler, Brown, Adam and Armstrong, 2004, p 387). In order to produce a product, a business has to concern about the level of product; core, actual and augmented product. The core product is "the problem solving services or core benefits that the consumers are really buying when they obtained the product" (Kotler, Brown, Adam and Armstrong, 2004, p 389). Actual product is "product's part, styling, features, brand name, packaging a d other attributes that combine to deliver core product benefits" (Kotler, Brown, Adam and Armstrong, 2004, p 390). Whereas the augmented product is "additional consumer services and benefits build around the core and actual products" (Kotler, Brown, Adam and Armstrong, 2004, p 390). The second element of marketing mix is price.

Price is "the amount of money charged for a product or the sum of value consumers exchange for the benefits of having or using a product" (Kotler, Brown, Adam and Armstrong, 2004, p 481). There two factors that the business should apply before set up the price; internal and external factors. Then, they can choose which type of pricing that suit the product; cost-plus, value-based, competitive or relationship-based pricing. The third element is Place, which is defined as "making products available in the right quantities and locations when customers want them" (Kotler, Brown, Adam and Armstrong, 2004).

It includes physical distributions, inventory, location, transport, and channels. Intermediaries (marketing channel) are the one which distribute the product from the producer to consumer. The last element is Promotion. It simply means the transmitting merits of the products and persuading target consumers to buy them. At the start of the products life cycle, promotion is necessary so that potential customers know of the existence of the product. Once the product grows, promotion must become more persuasive and encourage consumers to make a purchase.

3.6 Implementation Marketing implementing is to translate the plans into actions. For the successful marketing implementation, "company has to blend these elements: action programs, organization structure, decision and reward system, human resources and company culture - into a cohesive program that supports its strategies" (Kotler, Brown, Adam and Armstrong, 2004, p 142). 3.7 Controlling Marketing control referred as "the process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that marketing objectives are attained" (Kotler, Brown, Adam and Armstrong, 2004, p 147). The manager should control the marketing implementation by setting a goal, measure and evaluate the performance and also correcting the error of implementation.

4. Mercedes Benz Mercedes Benz has segmented their markets psycho graphic where they focus on satisfying those wealthy consumers. The car is well designed, which gives a comfort, safety environment, a high quality car and brand name. It also forms a Mercedes club for the users.

Moreover, the price is expensive but also in line with its closed competitors; BMW. Mercedes put a high budget on their promotion, again this is to attract the consumer and ensure profitability. They used mass communication tools where we can find their advertising in television, billboards and etc. Moreover, Mercedes also take part on few events as the sponsor; in order to build a relationship with the customers. Furthermore, Mercedes mostly channeled their products through a wholesales straight to the consumer, except the overseas consumers.

For the past a number of years, Mercedes are successful on maintain the market, as now, not only one type of car they produce but also MVP car has come to the market. "Today Mercedes-Benz is the most successful premium brand. Its technical perfection, quality standards, innovative impact and numerous car legends such as the 300 SL Gulling are unique" (Mercedes- Benz, 2005). Although, the car is generally expensive, but it's still receive a great amount of profit. This is because of the successful marketing which achieves a maximum consumers's atisfaction. 5.

Conclusion This report has observed the needs and important of marketing and how it affects the company's profitability. Overall, marketing is very important because it is able to find what consumer really wants, this help the business to target and position their markets accurately. And, therefore, attain consumer satisfaction which leads the business to their profitability.

Bibliography

Forsyth, P (2004) 'Marketing is a must', IEE Engineering Management, pg.
34-37 Kotler, P., Adam, S., Armstrong, G., Brown, L., Marketing Edition 6, Prentice Hall Australia, Sydney, 2004 Weiss, A (2004) What is Marketing? , 26 November 2002, web accessed on 10th May 2005.
Proton, web proton / index. php, accessed on 10th May 2005 Proton Edna, web info / overview /company info.
php? currentSceneSec = 0101¤tScene = 0100¤tButton = 1, accessed on 11th May 2005.
Hein, K. (2004) "Brand week".
Vol. 45 Issue 21, p 24, 4 p, 2 charts. Valentine, V. & Gordon, W. (2000), "The 21st century consumer: A new model of thinking".
International Journal of Market Research, Vol. 42, Iss. 2; pg. 185, 24 pgs Mercedes Benz, web accessed 11th May 2005.