netrashetty
Netra Shetty
Costco (NASDAQ: COST), is the largest membership warehouse club chain in the United States. As of July 2009 it is the third largest retailer in the United States, where it originated, and the ninth largest in the world.[1][2] As of October 2007, Costco is the largest retailer of fine wine in the world
ide range of research from simple methods done spur of the moment to extensive, highly developed research projects that take months or even years to complete. While lower-level research rarely requires a formal plan, research projects that are intended to offer critical information to support marketing decisions generally involve a formal plan outlining how research will be conducted.
This research plan consists of multiple steps which under most conditions are developed before research takes place. For instance, a researcher hired to perform work for a client presents the client with a written description of what is to be done prior to undertaking the work. This serves the purpose of making sure the client agrees with what is being done and also understands the commitment needed (e.g., costs, time, personal involvement) to complete the project.
In this part of the Principles of Marketing Tutorials we examine a two-part discussion of the process researchers follow to acquire information. Understanding this process is not only important for anyone carrying out marketing research but is also of value for marketers purchasing research from third-party sources. As we discussed in the Marketing Research Tutorial, relevant research must meet tests for research validity and reliability. For those purchasing research the material presented in the Planning for Market Research tutorials will help in that assessment.
The planning for marketing research consists of several steps that should be carried out in order. These include:
1. Determine the Research Purpose
2. Identify What is to be Learned
3. Research Design - Basics
4. Research Design - Data Collection (Secondary and Primary)
5. Evaluate Data
6. Analyze Data
7. Communicate Results
aintain a firm’s product concept in the customer’s minds. Market positioning amounts to arranging for a product or service to occupy a clear, distinctive and desirable place relative to competing products – in the minds of target customers (Proctor, 200). Positioning is the process of distinguishing a company or product from competitors along such dimensions as product characteristics or values that are meaningful to consumers. Positioning strategy aids customers in evaluating product attributes that are of significance or value to them (Michman et al 2003). Once the segment is determined then a decision has to be made as to how to position the product. The idea of positioning is to find out how the consumers/ consumers in particular segments are going to perceive the product and service and the company’s message about these products and service (Kermally, 2003). According to Paley (2006), positioning is not what you do to a product, it is what you do to the mind of the prospect. Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds.
Image is extremely important to Avon. The company maintains the position as the world’s leading direct seller of beauty and related products. Avon embarks on expanding new marketing opportunities without disrupting the current direct sales.
Avon’s Marketing Environment
Marketing Strategies
This section discusses the different marketing strategies that Avon employs in order to reach its customers and to encourage customer patronage and loyalty, The company has diverse marketing strategies.
Direct-Selling
A major characteristic of direct selling is the personal contact between a sales person and a consumer, away from a retail store. Avon implements the door-to-door selling type of direct selling. Avon uses freelance salespeople or agents to visit people in their own homes and to demonstrate and explain the use of a range of beauty products. Direct-selling provides important benefits to individuals who desire an opportunity to earn an income and build a business of their own. It offers the prospect of self-determination and financial independence. It also offers an alternative to consumers who want something different from the traditional shopping centers, department stores or other forms of conventional shopping. It offers an alternative to traditional employment for those who desire a flexible income-earning opportunity to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full-time employment (Lancaster and Reynolds 2000).
Product Trial and Sampling Events
Avon is popular for its product trial and sampling events. Avon uses events to encourage trial of its products among non-users and to encourage further purchases from existing customers. These events include demonstrations and sampling presented in supermarkets, shopping malls, and other locations where a big number of the desired target market can be reached. Avon focuses on product trial events as one of its forms of communication with the end customer. Its representatives, agents or distributors are recruited from their target markets and are encouraged to hold parties or events within their homes to offer friends and acquaintances the opportunity to try, feel, use the products, to interact with it in an experiential setting (Masterman and Wood 2006).
Cause-Related Marketing
Avon reaches around a billion women through 3 million independent sales representatives in 136 countries. The company is committed to its mission of becoming a company that understands and satisfies the product service and self-fulfillment needs of women globally. In line with this mission, the company has been supporting the “Crusade Against Breast Cancer” in order to uplift the lives of women around the world. Through this cause Avon is able to meet business marketing and communications objectives at the same time support a cause of real concern to their target market. Through Avon’s partnerships with various organizations combating breast cancer, the company is able to implement cause-related marketing strategy effectively. Avon’s cause-related marketing strategy has been implemented using a number of different elements of the marketing mix. The Crusade has involved sales of products where a proportion of the price is donated to charity. It has also included sales of charity fundraising products, sponsorship of fashion shows that aim to spread awareness about breast cancer and political lobbying through consumer petitions. Avon has benefited greatly from this association, enhancing their corporate profile, engaging new and existing customers, receiving enormous publicity, fostering feelings of affiliation among staff, representatives and customers, bringing the company’s vision to life (Baker 2003).
, especially in the large cities.
The Indian market is not homogenized. In order to obtain data on a nationwide basis, researchers have to target several cities, each with its own set of challenges, such as a different language and culture. While researchers understand such complexities, they have to work hard to justify high costs of conducting national studies to clients. According to Indica Research’s V. Ravi, another critical task facing the industry researchers is the need to articulate the value that research adds to a client’s competitive efforts.
Challenges and opportunities
The Indian market offers plenty of challenges and opportunities. The rapid rise in the number of Indian research firms and increasing presence of U.S. and European firms is strong evidence of the opportunities. While it lacks the infrastructure available in developed countries, the growing number of companies reflect a sense of optimism that eventually, it will become a market that cannot be ignored.
ide range of research from simple methods done spur of the moment to extensive, highly developed research projects that take months or even years to complete. While lower-level research rarely requires a formal plan, research projects that are intended to offer critical information to support marketing decisions generally involve a formal plan outlining how research will be conducted.
This research plan consists of multiple steps which under most conditions are developed before research takes place. For instance, a researcher hired to perform work for a client presents the client with a written description of what is to be done prior to undertaking the work. This serves the purpose of making sure the client agrees with what is being done and also understands the commitment needed (e.g., costs, time, personal involvement) to complete the project.
In this part of the Principles of Marketing Tutorials we examine a two-part discussion of the process researchers follow to acquire information. Understanding this process is not only important for anyone carrying out marketing research but is also of value for marketers purchasing research from third-party sources. As we discussed in the Marketing Research Tutorial, relevant research must meet tests for research validity and reliability. For those purchasing research the material presented in the Planning for Market Research tutorials will help in that assessment.
The planning for marketing research consists of several steps that should be carried out in order. These include:
1. Determine the Research Purpose
2. Identify What is to be Learned
3. Research Design - Basics
4. Research Design - Data Collection (Secondary and Primary)
5. Evaluate Data
6. Analyze Data
7. Communicate Results
aintain a firm’s product concept in the customer’s minds. Market positioning amounts to arranging for a product or service to occupy a clear, distinctive and desirable place relative to competing products – in the minds of target customers (Proctor, 200). Positioning is the process of distinguishing a company or product from competitors along such dimensions as product characteristics or values that are meaningful to consumers. Positioning strategy aids customers in evaluating product attributes that are of significance or value to them (Michman et al 2003). Once the segment is determined then a decision has to be made as to how to position the product. The idea of positioning is to find out how the consumers/ consumers in particular segments are going to perceive the product and service and the company’s message about these products and service (Kermally, 2003). According to Paley (2006), positioning is not what you do to a product, it is what you do to the mind of the prospect. Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds.
Image is extremely important to Avon. The company maintains the position as the world’s leading direct seller of beauty and related products. Avon embarks on expanding new marketing opportunities without disrupting the current direct sales.
Avon’s Marketing Environment
Marketing Strategies
This section discusses the different marketing strategies that Avon employs in order to reach its customers and to encourage customer patronage and loyalty, The company has diverse marketing strategies.
Direct-Selling
A major characteristic of direct selling is the personal contact between a sales person and a consumer, away from a retail store. Avon implements the door-to-door selling type of direct selling. Avon uses freelance salespeople or agents to visit people in their own homes and to demonstrate and explain the use of a range of beauty products. Direct-selling provides important benefits to individuals who desire an opportunity to earn an income and build a business of their own. It offers the prospect of self-determination and financial independence. It also offers an alternative to consumers who want something different from the traditional shopping centers, department stores or other forms of conventional shopping. It offers an alternative to traditional employment for those who desire a flexible income-earning opportunity to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full-time employment (Lancaster and Reynolds 2000).
Product Trial and Sampling Events
Avon is popular for its product trial and sampling events. Avon uses events to encourage trial of its products among non-users and to encourage further purchases from existing customers. These events include demonstrations and sampling presented in supermarkets, shopping malls, and other locations where a big number of the desired target market can be reached. Avon focuses on product trial events as one of its forms of communication with the end customer. Its representatives, agents or distributors are recruited from their target markets and are encouraged to hold parties or events within their homes to offer friends and acquaintances the opportunity to try, feel, use the products, to interact with it in an experiential setting (Masterman and Wood 2006).
Cause-Related Marketing
Avon reaches around a billion women through 3 million independent sales representatives in 136 countries. The company is committed to its mission of becoming a company that understands and satisfies the product service and self-fulfillment needs of women globally. In line with this mission, the company has been supporting the “Crusade Against Breast Cancer” in order to uplift the lives of women around the world. Through this cause Avon is able to meet business marketing and communications objectives at the same time support a cause of real concern to their target market. Through Avon’s partnerships with various organizations combating breast cancer, the company is able to implement cause-related marketing strategy effectively. Avon’s cause-related marketing strategy has been implemented using a number of different elements of the marketing mix. The Crusade has involved sales of products where a proportion of the price is donated to charity. It has also included sales of charity fundraising products, sponsorship of fashion shows that aim to spread awareness about breast cancer and political lobbying through consumer petitions. Avon has benefited greatly from this association, enhancing their corporate profile, engaging new and existing customers, receiving enormous publicity, fostering feelings of affiliation among staff, representatives and customers, bringing the company’s vision to life (Baker 2003).
, especially in the large cities.
The Indian market is not homogenized. In order to obtain data on a nationwide basis, researchers have to target several cities, each with its own set of challenges, such as a different language and culture. While researchers understand such complexities, they have to work hard to justify high costs of conducting national studies to clients. According to Indica Research’s V. Ravi, another critical task facing the industry researchers is the need to articulate the value that research adds to a client’s competitive efforts.
Challenges and opportunities
The Indian market offers plenty of challenges and opportunities. The rapid rise in the number of Indian research firms and increasing presence of U.S. and European firms is strong evidence of the opportunities. While it lacks the infrastructure available in developed countries, the growing number of companies reflect a sense of optimism that eventually, it will become a market that cannot be ignored.