Marketing Research and SWOT, Research Paper Example

Marketing research refers to collecting data to help make strategic marketing decisions such as product features, distribution channels, and consumers’ tastes etc. One of the benefits of marketing research is that it helps companies make objective decisions on the basis of data gathered. Marketing research ensures that the companies have taken the time to study their targeted customer segments and other market characteristics which may most probably result in higher quality marketing strategies. Another benefit of marketing research is that it may point companies’ attention towards something they had not given attention to before or may even help companies identify new opportunities (Small Business Notes). The disadvantage is that the marketing research can be expensive. Another disadvantage is that the customers may not always act in the way they responded in marketing research. Similarly, the effectiveness of marketing research also depends upon how well the research has been designed as well as the skills of the researchers.

Marketing research is preferable to intuitive decision making when an organization may be entering a market about which it has little knowledge or understanding of. Marketing research may also be preferable when the organization is trying to identify a niche market that might have been ignored by the leading market players. When Red Bull initially started, it might have identified a niche opportunity through marketing research. Similarly, intuitive decision making may be preferable when the organization has to acct quick or when executives have extensive experience or when they are visionaries. Intuitive decision making suits leaders like Steve Jobs who could predict in advance which products may be embraced by the market even before customers knew what they wanted.

SWOT analysis stands for strengths, weaknesses, opportunities, and threats. This means that among other things, a firm tries to determine what it is good at and what may be the opportunities available in the external environment that could be taken advantage of (MindTools). The chances of success increase when an organization tries to target market opportunities that it can meet effectively or better than the competition, thus, it is important to understand strengths and core competencies. Profit opportunities always attract competition and the most effective way to protect pricing power and market share is through core competencies that are difficult to imitate or match by the competition.

Apple presents a great example of a company that matches its strengths with opportunities in the external environment. The company’s strengths include brand name, seamless integration between hardware and software, and visionary leadership that is able to predict the emerging trends before the competition. This is why Apple is able to maintain attractive profit margins even in intensely competitive industries such as smart phone and personal computing because it is difficult for competitors to match or copy Apple’s core competencies.

Healthcare organizations can learn from Apple and scan for opportunities that can be exploited using organization’s core competencies and set itself apart from the competition. For example, an organization may discover that there is a market for high-end hospital care in which the high-income customers may be willing to pay more for hotel-type amenities to ensure privacy and a smooth hospital stay. The firm may realize that it already has a reputation for excellent care and it is also located in one of the most affluent region of the city. It will modernize its rooms, equip them with furniture normally found in five-star hotels, and will offer restaurant-quality food options for the patients and their guardians.

References

MindTools. (n.d.). SWOT Analysis. Retrieved October 25, 2012, from http://www.mindtools.com/pages/article/newTMC_05.htm

Small Business Notes. (n.d.). Market Research: Benefits. Retrieved October 25, 2012, from http://www.smallbusinessnotes.com/marketing-your-business/market-research-benefits.html