Fin
greg1029
order_61279_147196-1.pptxMarcelo DB
Student’s Name
Institution
Introduction
Aveiro Automotive is a new company in the Automotive industry
The company is introducing its latest model of cars to the market; Marcelo DB
It is a new product that intended to give customers the value of their money
Solomon (2014) states that when a business introduces a new product to the market, it should ensure that it meets the expectations
Aveiro Automotive is a new business in the market
It is introducing its latest car, Marcelo DB
It is an efficient product that is expected to meet the needs of the consumers
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recommendation
Before a new product is launched to the market, it is highly recommended that in depth analysis should be conducted
It is also recommended to carry out a research about the factors that affect the specific market in which the product will be launched (Agrawal, Atasu & Van Ittersum, 2015)
It is noted that a new area is risky since little is known about
These recommendations will help Aveiro Automotive to conduct effective research that will lead to better decisions
It is highly recommended that extensive marker research is carried out before a new product is launched
This assists in understanding the uncertainties in the market
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benefits
The first benefit is concerned with communication
Through market research, an organization creates a link with its potential customers (Baker & Sinkula, 2015)
Taking the recommendation into account, Aveiro Automotive will establish a strong relationship with its potential customers
This will boost the chances of survival in the market
Market research enables a business to collect useful information that is used for decision-making
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Cont’d
Market research enables an organization to understand its target market
This improves the communication between the two stakeholders
It is necessary for businesses to establish strong communication links with their target customers
This enables them to understand each other better
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Cont’d
The recommendation is also beneficial because it assists the organization to identify possible opportunities in the market
This implies that the product can be designed in a manner that meets the specific needs of the market
The major benefit in this case is the great chance of customer satisfaction
Market research is also beneficial in the sense that it reveals opportunities in the market
This assists businesses to use the right strategies to exploit the opportunities
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Impact if product does not sell as expected
The company will suffer great losses at the initial stages
Profits are expected from sales, therefore, poor sales directly transfer to low or no profits (Olsen, Slotegraaf & Chandukala, 2014)
This will negatively affect the financial stability of Aveiro Automotive
The company might not be able to invest in more projects or products as it might have planned
If the product does not sell as it is expected, there will be an negative impact on the finances of the company
The company might fail to perform further investments
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Cont’d
Poor sales will directly lead to losses and a poor financial base of an organization
Poor sales might lead to a deficit which means the financial base of the company will be weakened
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Conclusion
Market research is an essential requirement for businesses that are new to the market
Aveiro Automotive should ensure that intensive research is performed
This provides relevant information that can be used for decision-making (Sheth & Sisodia, 2015)
New businesses should effectively invest in market research
It is important for new businesses to conduct an extensive market research
This ensure that they make the right decisions
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References
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Englewood Cliffs, NJ: Prentice Hall.
Baker, W. E., & Sinkula, J. M. (2015). Market Orientation and Organizational Performance: A New Product Paradox?. In Creating and Delivering Value in Marketing (pp. 254-254). Springer International Publishing.
Olsen, M. C., Slotegraaf, R. J., & Chandukala, S. R. (2014). Green claims and message frames: how green new products change brand attitude. Journal of Marketing, 78(5), 119-137.
Agrawal, V. V., Atasu, A., & Van Ittersum, K. (2015). Remanufacturing, third- party competition, and consumers' perceived value of new products. Management Science, 61(1), 60-72.
