A marketing research for the Hamilton’s Health Inc. elliptical needs to be carried out within two weeks to determine the forecast figures to be used by the production department. This paper seeks to determine the information that can be developed from the research, the type of marketing research to be employed and an evaluation of the accuracy of the information obtained.
Information that can be developed
Information about the market size for the elliptical can be developed within the two week time frame. From published items about the usage of the elliptical in the target market and by the use of information obtained from the current sellers of the elliptical, an estimate about the size of the market in terms of customers can be reached. This will be through the use of historical data on the number of customers who have made purchase of an elliptical in the past. A reliable figure on the projected number of customers in the whole market can be obtained.
The trend of market growth (Kotler & Armstrong 2007) for the elliptical can also be obtained from internal and external historical records. This will enable the company’s sales manager make projections on the expected number of elliptical that will be sold in the next quarter. The trend in growth of the market will be vital in establishing a projection of the number of elliptical that the company needs to produce in the next quarter.
Information on the expected competition (Kotler & Armstrong 2007) can be obtained through the market research. An evaluation of the sales volumes and market penetration of competitors is important in determining the estimate for the sales projection for the company. This will enable it come up with a figure of the expected number of customers in the next quarter. Information on the existence of products that can compete with the elliptical in the market can also be obtained through the market research.
Information on the efficiency of the company’s distribution channels can also be obtained through market research. This will enable the sales manager estimate the sales volume in different parts of the market and enable her to make an estimate of the number of elliptical trainers that need to be produced for the next quarter.
Information on the market size, rate of market growth, expected market share, anticipated competition and efficiency of the distribution channels can be developed within the two weeks. These will enable the sales manager make the best possible estimate on the number of the product that need to be produced for the next quarter.
Type of marketing research
Based on the information obtained, a demand estimation type of marketing research can be used (Bradley 2007). This involves making projections on the expected level of demand for the elliptical and data on unit demand projections over a given period of time will be obtained. Demand estimation will result in an approximate number of elliptical that are expected to be demanded in the next quarter and thus assist in determining the amount of elliptical that need to be produced.
Sales forecasting can also be used as a type of marketing research for the product. This will involve making estimations on the product sales that are expected in the next quarter from different market segments at different prices. From sales forecasting, data on projected sales will be obtained and this will enable the sales manager make a projection of the number of elliptical trainers that need to be produced in the next quarter to match the projected sales.
A market segmentation type of research can also be carried out to estimate the production needs for the next quarter (Bradley 2007). The various market segments for the product can be analyzed based on historical information to develop data on the projections of demand and sales in the various market segments for the product. This will enable a projection of the number of customers in each market segment and therefore assist the sales manager in estimating the number of units that need to be produced for the next quarter to satisfy ach market segment.
Accuracy of the information gathered
The accuracy of the information gathered cannot be said to be the best possible. This is because the information is based on historical data which may not reflect the current market dynamics. The time frame within which the information is gathered is so short that validation of the secondary information obtained may not be possible. This will affect the accuracy of the information obtained.
Bradley, N. (2007). Marketing Research: Tools and Techniques. Oxford: Oxford University Press.
Kotler, P., & Armstrong, G. (2007). Principles of Marketing. New Jersey: Prentice Hall.
McDonald, M. (2007). Marketing Plans. (6th ed.), Oxford, England: Butterworth-Heinemann.