Marketing research is the application of the technical method in hunt of the fact about marketing singularities. These events involve defining the market issues and opportunities, estimating and creating market ideas, supervising performances and realising the marketing process. (Brainmates, 2009)
Marketing research is very crucial that in the United States alone is a multibillion-dollar industry. Main benefits of market research include: (Observation Baltimore, 2011) (Smallbusiness, 2016)
- Identify potentical customer
- Identifying your existing customers
- Set realistic targets
- Develop effective strategies
- Examine and solve business problems
- Prepare for business expansion
- Identify business opportunities
Here we will focus on customer value importance.
Customer value analysis indicates the very important benefit a marketing research study can have on a company. CVA provide organisations with highest business intelligence qualified of unlocking compound market opportunities. It helps people express the actions that will result in an aggressive benefit. (Forwardanalytics, 2016)
Basically, Customer value can be calculated as customer benefits divided by customer cost. For finding out all the details we need to form one module covering all the aspects that affect customers. Such as Generate a comprehensive list of value elements, gather data, validate the model and understand variance in the estimate, create value base sales tools, putting and understanding the values to use, managing market offerings, Guiding the Development of New or Improved Products and Services, gaining customers, sustaining customer relationship, Delivering Superior Value and Getting an Equitable Return etc. (Harvard Business Review, 1998)
Main goal of this model is: (Saurage Marketing Research, 2010)
- Detecting the most important purchase attributes.
- Estimating the areas of strong and weak performance of the competitive set against value drivers
- Evaluating which companies are providing a fair market value for their products and services.
- Uncovering unmet needs in the marketplace.
The value model denotes in order to be economical with market segment a company should focus its force on technical expertise, salesforce and global presence. With all this information we can focus on the characteristics that customer value the most.
How well are we performing on the critical attributes?
To keep an eye on your progress is important, so we have to check how our organisation is performing on all the critical attributes such as, product quality, salesforce, technical expertise and global presence.
Does the value of my product or service justify its cost?
This model also gives organisation an idea to identify if and to what level it and its rivals can charge a superior price for its products and services. It enables an organisation to track how change in price impact the perception of value.
Head-to-Head Value Matrix,
This value matrix method is direct analysis of organisations in a market set to the critical importance factors. This analysis can be used as a guide to managers for giving input for SWOT analysis and other tools for improving company’s position in the market.
With the application of quantifiable CVA research, we will be armed to: (Forwardanalytics, 2016)
- Categorize the attributes that matter to our customers and the competitors’ customers.
- Denote precisely how clients define these attributes.
- Calculate the company’s implementation and our competitor’s functioning.
- Indicate which rivals have higher value propositions and what can be done.
- Disclose which market players are dignified to gain or lose market share.
- give a fact-based, data driven system for making choices, whipping the competition and tracking progress.
This customer value model is a strong tool in marketing research methods which allows organisations to position themselves concerning the rivals as a leader in areas of most value to consumers. Equipped with all this knowledge, management can emphasis its quality betterment initiatives in segments where it will be most valuable. The utilisation of this customer value model and market segmentation generally leads to brand new product offerings, enhanced web content and impressive marketing strategies.
Name: Anuj Shashikant Bhogle
Student ID: 215232377
- Observation Baltimore. (2011). Understanding the Value of Market Research – Observation Baltimore. [online] Available at: http://observationbaltimore.com/blog/2011/07/understanding-the-value-of-market-research/ [Accessed 18 Apr. 2016].
- wa.gov.au. (2016). Step 1. [online] Available at: https://www.smallbusiness.wa.gov.au/business-topics/marketing/market-research/step-1-why-do-market-research/ [Accessed 18 Apr. 2016].
- Brainmates – Boosting People and Product Performance. (2009). The Importance of Market Research – Brainmates – Boosting People and Product Performance. [online] Available at: https://www.brainmates.com.au/contributions/the-importance-of-market-research [Accessed 18 Apr. 2016].
- com. (2016). Customer Value Analysis and Customer Loyalty Market Research. [online] Available at: http://www.forwardanalytics.com/quantitative_research/Customer_Value_Market_Research.html [Accessed 18 Apr. 2016].
- Saurage Marketing Research. (2010). Customer Value Analysis – Saurage White Paper – Saurage Marketing Research. [online] Available at: http://www.saurageresearch.com/saurage-white-paper-customer-value-analysis/ [Accessed 18 Apr. 2016].
- Harvard Business Review. (1998). Business Marketing: Understand What Customers Value. [online] Available at: https://hbr.org/1998/11/business-marketing-understand-what-customers-value [Accessed 18 Apr. 2016].
- Fig. 1 Marketing research – http://makambaonline.com/wp-content/uploads/2016/02/marketresearch.gif
- Fig. 2 Customer Value – https://www.chartwellinc.com/wp-content/uploads/7.2.14-Customer-Value.jpg
- Fig. 3 Customer value pyramid – http://www.religence.com/images/relationshipvalue.png
- Fig. 4 Customer value model – http://www.saurageresearch.com/wp-content/uploads/2010/04/value-model.jpg
- Fig. 5 Head to head value matrix – http://www.saurageresearch.com/wp-content/uploads/2010/04/head-to-head-matrix.jpg