After asking a few people for their opinions of which of the four potential names use, I came to a conclusion. The two most popular were ‘mental rentals’ and ‘premier videos’, and as I liked both names I decided to call the company/business ‘JASUR Entertainment’, To make it easy for customers to distinguish between the video section, DVD section and console games section, they will be differently themed (e.g. with different colours) and have different names. For the Video section I have decided to use the name ‘Video Line’, for the DVD section I have decided to use the name ‘DVD Line’ and for the Console games section I have decided to use the name ‘Games Line’.
I have also designed a logo for my business. The logo is shown below:- The importance of Marketing Marketing is the management process involved in identifying, anticipating and satisfying customer wants profitably. It is a function which links a business/company with consumer tastes to produce a product or service which will have the best demand at the right place at the right time. Marketing decisions are made based on the findings of market research, and carried out through the marketing mix. The product will satisfy customer needs and wants, and marketing will help advice what price to set the product or service. It will also ensure that the outlet is in its most convenient place and will promote the product/service so that people are aware of its existence.
A marketing plan is a report which details a businesses/company’s marketing objectives and strategy (for example costing, forecast results and contingency plans). These are the main stages that I will include in my marketing plan. They are to:- Stage 1 is important to allow my business to grow year by year and expand. Examples of objectives for the coming year based on goals for three to five years time may include:- 1) Targets for sales 2) Targets for market share/establishment in the market place 3) Targets for distribution levels 4) Brand image ratings.
Stage is important to identify customer wants, and help make decisions on the marketing mix. Stage 3 is important because creating a marketing audit will ensure full knowledge of the business’ marketing assets. This could be supplemented by SWOT analysis, to identify the business’ marketing strengths, weaknesses, opportunities and threats. I can therefore act accordingly to competition to survive the competition and use the strengths of my business to compete with competition and put them under threat. Stage 4 is important for achieving the objectives that operates within a defined budget and covers:- 1) New product development 2) New product launches 3) Going brands.
It is important because I need to understand that my budget and available products will limit how many products (videos)I will have and what genre of videos I have. Therefore my ability to maximize profits and sales will be limited. Production Orientation to marketing is adopted by many businesses, and it means that they design and create a product and then attempt to convince consumers to purchase the product.
Market Orientation to marketing is where the business does market research to find out what consumers want before creating the final product. Market Orientation is more suitable these days because, although it costs a lot to carry out market research, it dismisses the risk that the business creates a product which nobody wants to buy. Having said that, I shall use mostly product orientation. This is because I can only sell videos/DVDs/games that have already been produced, however, some market research will help me understand what films are most popular so I know what and how many videos to purchase to sell on.
Market segmentation is the analysis of a market to identify the different types of consumer. Examples of these different types of consumer are splitting them into different age groups, ethnic groups and gender. The different parts of each market (e.g. an age market) are known as market segments. Examples of these market segments are:- 1) Under 18 yrs 2) 19-25 yrs 3) 25-40 yrs, etc A market niche is a gap in the range of products/services offered within a market. Market niches are often the openings in a market which allow new businesses to enter the market with products for a market segment.
I will attempt to segment my market by:- 1) Age – because of age certificates on films 2) Genre of films preferred (e.g. action, romance, animated etc) 3) Ethnic groups 4) What film-playing device they own (e.g. VCR or DVD player) With market segmentation, it will allow me to develop a marketing strategy, as it will help me to identify target markets and niches that then can lead to development or improvement of a product. Knowing the types of consumer prone to become customers can allow the business to develop a competitive differential advantage over competitors.
Market Research Market research is the process of collecting, collating and analyzing information about consumers and markets. This could include information about consumers’ sex, age, occupation, income, habits, likes and dislikes, where they live, where they go and what they do in their spare time, which newspapers or magazines they read, and when they listen to the radio and watch television.
The market research objectives for my project are:- 1) To find out what the best target market for my business is. I need this so that I can aim my products/services at a specific audience so that I can provide a good service to them and maximise the profit. 2) To find out what the general demand of the product will be. I need to know this because I will not want to produce a product/service and put it on sale if nobody wants to buy it. 3) To find out consumer habits. I can find out what they like and what they don’t like so that I can alter or completely change products to the likes of the interviewee, creating a better product or service.
4) To find out how much people are willing to pay. This is because I need to know how much to price my products/service. If I charge too much then people will not be willing to make the purchase, however I want to charge as much as possible without putting people off so that I can maximize profits to expand the business. A company can obtain the market research information in 2 main ways:- 1) Desk research involves the studying of information, which already exists.
Such information is known as secondary data. This may be the internal record of a firm, such as sales or accounting records or salespersons’ reports. It can also be information published by someone else, for example newspapers, or government reports, such as the National Census, Social Trends, and the Central Statistics Office Digest of Statistics. Libraries are a good source of such information. For my project I will use Mintel reports and Keynote reports to find out about the market (whether it is growing or in decline), Yellow Pages to find out about the local competition to my business and census data for the income and lifestyle of the local population.
2) Field research involves the collection of primary data or new information, for example, by the use of questionnaires. A list of carefully chosen questions is asked to existing or potential customers by personal interview, by telephone or by post. Initial field research normally focuses on obtaining quantitative data, which means gathering statistical data about the consumers which can easily be collated and analyzed to give a general consumer profile. It may be followed up later by more detailed qualitative research through consumer panels or one-to-one interviews. For my project I will use questionnaire results to find out peoples’ general tastes habits and situations, and competitor analysis so that I can see how the competition is working and get some ideas and tips on consumer tastes and what the consumers like to finding the market.
I have designed a questionnaire so that I can find out some information about the population. For a copy, please see Appendix 2 in the appendices section. In my questionnaire, I asked people:- 1) What is your gender? – So that I can segment the market to pick a target audience. 2) Which age group do you fall into? – So that I can segment the market to pick a target audience. 3) Do you have child/children? – This will influence the type of films they rent/buy. 4) What area do you live in? – so that I know that if they live in the area close to where the business will be set up, I can see in conjunction with the next question if they are willing to come to the business from nearby.
5) Would you be willing to go to the Pinner area of Harrow to rent/buy films? – to find out if people nearby will be willing to come to my shop. 6) On average how many films do you rent out per month? – so that I can see how much service I am likely to need to provide, and to find out how popular the video/DVD rental market is. 7) Which of these do you own (hardware)? – so that I can see what people own so that I know to provide software for the popular pieces of hardware (e.g. Dreamcast may not be owned by many people so it would be pointless for me to provide a rental service for it as I’m unlikely to make a profit on it. 8) What genre of films people do you like to watch? – so that I know what type of films will be popular so I know how many of each film release to stock.
9) How much are you willing to pay to rent out a film on video or DVD per night? – so that I know how much to charge for film sales/rentals whilst maximizing profits without putting people off by overcharging. I used closed questions in my questionnaire because closed questions allow me to compare results and show the results in a graph. This makes it easy to see which answers are most popular and which are less popular. They are also easier and quicker for the person answering the questions to answer than open questions, so the person is more likely to be willing to answer the questions.
I carried out a Pilot survey using my original questionnaire (see appendix 1) to see if I would get the sort of answers that I am looking for, and to see if I can make any changes to it to make it better. The questionnaire does give me all the answers that I need to know, and the feedback has indicated that it is straightforward to follow and answer the questions. This is mostly because it is relatively short and the questions are closed questions.
As a result of my Pilot questionnaire, I made a few changes before producing my final questionnaire (see appendix 2). The first change that I made was that I added the choice of ‘maybe’ to the question ‘would you be willing to go to the Pinner area of Harrow to rent/buy films’. This is because some people, when asked, were not sure whether they would be willing to. Also, with questions 7 and 8, I gave the answers numbers because it made it easier to record the answers on the record sheet. It meant that when I was given an answer to either of these two questions, instead of having to write out all of the words each time, I could just write the numbers out. This saves time and looks neater on the sheet.