Market research is a vital for any organization that wishes to expand in other markets. This process solidifies organizations knowledge of a market on and before venturing in such a market. This report provides an insight about the market weather and environment in the Asia Pacific with regard to consumer uptake of Italian furniture. Market research is a key ingredient of successful marketing. To achieve success, marketers have oriented themselves with core marketing competencies, like, holistic relationships between possible markets and the industry players in such markets. This approach is the single most important step in tackling and establishing products and services in new markets.
Such objectives are based on exploratory trips. These trips enable the marketer to become oriented with consumer trends and habits. In this case study, making field trips to key cities in the Asia-Pacific like Shanghai, Beijing, Hong-Kong, Seoul, and Taipei will play a significant role in establishing key facts about they market demographics and opportunities which the company can tap on here Chao, Samiee, & Chung Yip, 2003).
. As a furniture seller, the company will be able to identify key opportunities in such markets. Field trips help an organizations marketing executive realize what gains his/her organization can make in such markets.
Learning consumer spending habits, their relationship with local companies that supply them with products and services, corporate and social governance and the overall market weather is essential in making a strategic plan that will guide the firm to make headway in such markets. Based on integrated marketing approaches, organization hoping to make inroads in markets such as the Chinese, need to recognize that customer needs and behavior are not obvious unless formal research is comprehensively carried out to establish their evidence in principal. The Asian markets are today robust and fast growing. Implicit evidence of how companies have failed to turn around markets and replace stereotypes in the local Asian markets Chao, Samiee, & Chung Yip, 2003). The approach required in such consumer driven markets is to develop a sustainable environment by first empowering the society and subsequently tapping on the markets.
The role exploratory trips might play
The trips will help investigate the following
- Identify if there is growing consumer affluence in either of these cities.
Consumer affluence means, consumers focus on new products and services in relationship with the brand and origin of the brand. Affluence is also about the flexibility of the consumer in making purchase decision.
- Mine reliable data to make their decisions and plans to achieve competitive advantage
Data collection is not all about sampling and surveying, but analyzing market conditions and identifying opportunities that can be tapped. Data collection in these cities will go a long way to provide solutions for the furniture firm when making their decision about selling in these markets.
Concisely, the exploratory trip will provide decision makers with an actual image of the market. The researcher will be able to identify the actual potential of these markets, market trends in these markets, consumer behavior, and the competition existing in these markets.
The trip will yield the following in principal
- If there is culture influence
- Scope of culture influence
- Consumer behavior
- Potential market
Type of data to be collected during this exploratory trip
The type of data collected during this trip is qualitative. Qualitative research in international marketing identifies the strengths and weaknesses of a market by answering the complex question of ‘how the market looks likes and behaves’ through textual description. This complex textual description of a market is the comprehensive overview of how Asia- Pacific people behave, react, relate, and decide when buying or thinking about owning furniture.
The data collected includes a myriad of observations, direct consumer quotes with regard to the objective of the research, a review of competitor’s views about the possible impact of Italian furniture in such markets, and consumer behavior when buying furniture.
Since qualitative data entails rigorous exploratory processes which involves meeting people, discussing the context with consumers, examining regulatory frameworks, identifying opportunities through discussing partnerships with outlets, the overall data is a complex textual description of the market.
The data collection method involves extending scope to study the population with the aim of gaining understanding of the Asia-Pacific social context. This data collection methodology is vital for it is culturally salient to the participant, rich and explanatory in nature, meaningful, and un-anticipated by the market researcher. Besides, the researcher is able to be flexible and probative of participant’s insights.
Actual data collected by this company representative
He realized the following
- The general Asia Pacific market is a composed of a collectivistic society
- The Asia-Pacific cities and their markets are predominantly collectivistic whereby; the consumers are loyal to brands in an almost holistic manner.
- Consumers in these regions tend to buy furniture related to their cultural background.
- These consumers relatively rely on reference groups to stay in sync with trends.
- They are confident when buying
- They subscribe to group consensus
- The society is temporally oriented with their cultural background being vital
- The market weather is authoritarian pluralism, which is an aspect of the regimes
- Culturally, the Asia-Pacific market associates high prices of products with high quality
How this data will contribute to the decision of entering these markets
A report to the board
The main gains of this explorative tour were gaining a comprehensive viewpoint about the Asia Pacific furniture market. The market is composed of consumers, industry players, and opportunities. Having insight about such, a market allows our firm to make decisive steps in establishing ourselves in such a market. Besides, the tour highlighted the varying consumer trends in each city. The policies in these countries as well, as how the policies make sense to his business are important and seem good for our business model. Armed with such knowledge, we can easily tap these markets and successfully establish networks, franchises, and most importantly, a relationship with the market.
Qualitative Data is essential. The data collected during this field trip is vital in shaping the marketing strategy of this furniture company. Asian markets are different and every market should be approached differently.
The firm has to understand consumers since the Asian market collectively is pluralistic and as a furniture firm we need to understand the factors that influence consumer-purchasing decisions, how they acquire product information, and how the companies operating in these markets develop consumer brand loyalty. Overall, we now understand consumer behavior, as well as how this behavior will affect the marketing strategy. We will have a strong relationship between the conceptual basis of consumer behavior and strategic marketing tenets where the collective aspect of these people’s nature will guide the marketing strategy.
About the people, the difference in culture is important to note. The Asian market subscribes to the authoritarian principles and policies. The Asian-pacific region is collectivistic hence more loyal on average. They are able to take up arrogance, believe in collective responsibility, and that the markets and governments here are authoritatively pluralistic. Consumers are inclined on their tradition and are slow to take up new trends, especially where products and culture is involved.
Overview on International Market Selection
International market selection is a very crucial decision for any organization engaging in international business process. Many organizations fail to identify profitable and servable markets to venture in due to ad hoc decisions made after a review of qualitative data. The data this firm has collected will be matched with the organizations appropriate foreign market target.
Internal factors to consider when selecting the international market
- Personnel; the context of employees and how the organization is going to respond to the market will greatly depend on its staff in that particular market. The employee’s attitudes will determine how the firm will solidify a relationship between the consumers and the firm; hence develop an uptake of the products.
- Management; either the parent company manager or a newly appointed manager will be instrumental in influencing the direction of the company. He is responsible for shaping the future of the firm’s new venture in a new market. A manager with knowledge of operating a firm in a global will insulate the firm from the fear of operating in a foreign market.
- Customer; the consumers are what turns the market around into a business environment. The market research/survey provides specific guideline sin areas to tap in and dominate the market based on them. However, it is important to note that, domination and nature of markets is determined by consumer population/numbers, and the specific origin of the products being sold.
- Capital, the money required to venture into the new market is a very important factor to consider. The cost benefit on each specific market determines the capital requirement, for example, if the target market promises great profitability, the capital requirement is overridden by the prospect of returns.
- Social assessment: it is important to assess the impact of the venture on the society. Social assessment is a tangible determinant of cost benefit analysis where the impact on the society determines the consumer-firm relationship future.
- Corporate social responsibility; the firm should consider how the specific market views CSR
Why these factors require additional information
Though this data was qualitative, the exploratory trip was not a data collection process, rather more of a market survey. Doing a comprehensive qualitative research will help make sense of these factors so that overall the decision made is based on tangible facts and observations. However, Max is already armed with information vital and comprehensive enough to allow the venture, it is important more research, based on a qualitative data collection to be carried out to provide a solid background for the venture.
Max and his partners are well placed to venture in Asia Pacific markets. Armed with market information and consumer habits data, the furniture firm can make a successful entry in the markets if it interprets the data carefully and designs a business model that fits the market requirements. Upon modeling the business, the company will have to develop a budget that will cater for the establishment of their Asia-Pacific branch in the city they select. They will have to hire a qualified manager and staff who will be able to make the company establish a market share and development in the particular market.
This approach has outlined the core tenets of approaching international markets. Market research has been projected as the most essential process when any marketer plans to diversify and venture into other markets. Learning consumer spending habits, their relationship with local companies that supply them with products and services, corporate and social governance and the overall market weather is essential in making a strategic plan that will guide the firm to make headway in such markets.
Chao, P, Samiee, S, & Chung Yip, L. (2003). International marketing and the Asia-pacific region: developments, opportunities, and research issues. International Marketing Review, 20(5), Web.