Assignment Content (The Company I chose was Nike - so that's the 1 that you have to use!) Purpose of AssignmentThe purpose of this assignment is to help students think through the importance of socia

Running Head: RELATIONSHIP MARKETING 0

Relationship Marketing

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Introduction

To have effective businesses, companies go the extra mile to understand their customers. They do the extra work to find out their customers' preferences, tastes, and understanding of their customers to provide better and fulfilling services and establish lasting customer relationships.

Primary research

Primary research is conducted through observational study, where data is gathered by looking into customers, their actions, and situations. It can also be done through surveys, where a company asks customers about their preferences, knowledge, buying patterns, and attitudes (World Supporter, 2017). Moreover, experimental research can be done, where groups are divided and served with different treatments, and observations are made. Electronically, information can be gathered through mail, telephone, or online interviews (World Supporter, 2017). The advantage of this is the collection of massive data at the same time. Online marketing research and focus groups can also be used to collect information, feedback, and reviews on products or services (Chrysochou, 2017). Since it is not feasible to research the whole population, companies choose samples from which they derive their conclusions.

Secondary Research

This research involves searching for data that was previously collected for other purposes. Such information is obtained from online databases and internet research. Companies must screen this information to ensure it is relevant to their course, accurate, and current. Secondary research strengthens primary research and enables companies to make informed customer decisions (Word Supporter, 2017). It usually focuses on customer attitudes, brand and product preferences, consumption habits, demographic characteristics, among others. Although the information represents other customers, a company can choose features that best reflect their customers.

Consumer Analysis

Consumer analysis aims to determine whether customers are likely to buy products and look into customers that are most likely to buy good and services from a company. Consumer analysis involves understanding customer motivation to provide better services to cater to the needs (World Supporter, 2017). It involves first identifying the need for present customers in a particular way. To understand them better, they can be split into groups according to similar traits. Consumer analysis will then show the needs of customers in different groups as well as show how the requirements can be met, and what adjustments have to be made to the companies' products.

Continuous Consumer Monitoring & Research

Continuous research provides a never-ending opportunity to stay informed about changing customer trends as well as provide regular information and data as opposed to specific time research. Continuous consumer monitoring is crucial because it enables a company to track and monitor changing customer preferences, opinions, needs, and behavior (Palermo, 2018). This provides companies an opportunity to make adjustments to their processes and make necessary adjustments to satisfy customers. It is also vital to evaluate tested ideas before they are implemented as well as validate opinions and hypotheses.

Target Market

A target market is established after conducting market research and customer analysis. Target marketing is more cost-effective than reaching the mass, and a company can develop services and campaigns tailored towards their target market (Joseph, n.d.). The target market consists of customers who share similar characteristics such as age, education level, gender, and other demographic characteristics. For instance, a company that sells sanitary towels targets women of reproductive age. Another aspect of the target market is psychographics, which includes activities and opinions. For example, a company whose target market is gym members will accentuate aspects of their product that appeal to the target market.

Explain the insights you have gained from your inspection and analysis of the demographic and psychographic information you have found.

By focusing on a target market and monitoring it through continuous research, a company can make enormous profits. For example, McDonald's has the most significant fast-food sales in the U.S from aiming its product at teenagers and young adults (QSR Magazine, 2017). They have targeted advertisements and provide free Wi-Fi, toys, and promotions, which focus on their young customers (Ward, 2020). Moreover, when McDonald's sales began to decline with a reduced interest of the target market in the menu, they developed healthy food options as a strategy to target the millennial generation. It for a company to understand customer behavior, likes and preferences, and opinions about products. Target marketing is an excellent marketing strategy that allows a company to provide goods and services according to the customers’ demographic or psychographic characteristics.

References

Chrysochou, P. (2017, March 17). (PDF) Consumer behavior research methods. ResearchGate. https://www.researchgate.net/publication/315109715_Consumer_Behavior_Research_Methods

Joseph, C. (n.d.). Characteristics of a target market. Small Business - Chron.com. https://smallbusiness.chron.com/characteristics-target-market-1020.html

Palermo, E. (2018, January 24). The benefits of continuous customer feedback surveys. Market Research Companies, New York | Drive Research. https://www.driveresearch.com/market-research-company-blog/the-benefits-of-continuous-customer-feedback-surveys/

QSR Magazine. (2017, August 1). The QSR 50. QSR magazine. https://www.qsrmagazine.com/content/qsr-50

Ward, S. (2020, April 8). Use target marketing and market segmentation to improve your bottom line. The Balance Small Business. Retrieved June 10, 2020, from https://www.thebalancesmb.com/target-marketing-2948355

World Supporter. (2017, February 6). Summary principles of marketing (Kotler) | WorldSupporter summaries and study notes. WorldSupporter. https://www.worldsupporter.org/en/chapter/41634-summary-principles-marketing-kotler