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Impact of customer satisfaction on business
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Due to an overlooking on market research, many small business owners lack key components when it comes to a successfully operated business. Many people tend to view market research as a “necessarily complex business made up of computers, models, and statistical gymnastics” (D’Amico 41). Small businesses are prone to lose revenue/profit as a result of poor market research. The ability to provide apply such research to a small business can improve upon many key components that make up a healthy business. Practicing market research in small businesses can help business owners develop products that differ from their competitors, create an understanding of the marketplace, and practice target marketing techniques. This will also help provide top quality services to customers and keep the business in operation for years to come.
Problem/Background:
According to the U.S. Small Business Administration, “seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more”(1). In between 2005 and 2009, there were more closures than births when it came to small businesses. Small firms employ nearly half of private sector employees in the U.S. The private sector plays an important role in the economy when it comes to growth and development.
Michael D’Amico defines market research as a “broad range of activities that encompasses the gathering and analyzing of facts relevant to problems arising during the transfer and sale of goods and services “(41). Business owners tend to avoid any sort of effort that might involve marketing research. Many think that marketing research is too expensive, or that it is not worth the trouble, when in fact it is. Mark...
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...and thus, a marketing decision is made. Although this may seem like a difficult process, it all works for the better of small businesses succeeding in their markets.
Conclusion:
Small business owners, in the U.S. struggle yearly to keep their businesses running effectively and efficiently. These businesses may tend to fail when it comes to conducting market research. A lot of times, businesses are selling products that have already been sold. Starbucks is doing what no other company in their market thought to do; they have begun to sell beer and wine to their customers after 4pm. Due to this implemented marketing strategy, Starbucks is expected to increase sales and profit and welcome a new variety of customers. This is just one example of how small businesses can apply the same changes through market research in the hope of successful operating for years to come.
Although small businesses are responsible for nearly two-thirds of job growth in the United States economy, the government constantly harms them with new regulations. Not only do these regulations from the federal and state governments stifle the growth of small businesses, but they place the entire free-enterprise system in jeopardy. Small businesses cannot afford to hire lobbyists to fight for their protection, because they are typically operated by sole proprietorships and run on relatively low operating budgets. To be successful in their endeavors, small business owners need to focus on their business; any time spent not operating the business can harm their companies. However, the National Federation of Independent Business (NFIB) provides a solution to this problem.
Policy makers wield huge influence when it comes to intervention in new firm creation and growth. Policy makers often put into place macro economic policies that seek to overcome attitudinal, resource, operational and strategic barriers to the formation of new firms. (Storey 1994) New firms represent a large portion of the new jobs created each year and therefore politicians are incentivized to make sure new firms are formed. In the past 17 years 63 percent of new jobs have come from small businesses in the United States. (SBA Office of Advocacy 2009) New firms are often closed within 5 years with only a third surviv...
Marketing research is the systematic design, collection, analysis, and reporting of data and its findings relevant to the specific marketing situation that a company faces (Kotler, 2012). By researching the motorcycle rider, Allstate is able to identify who they are and what they experience. In 2008, Allstate conducted a “Who’s Behind the Helmet” survey. They defined their qualifications as a motorcycle owner who is 18 years of age or older with an income of $50,000 or more. (Floyd, 2008). The 500 person sample size produced insightful and interesting details for Allstate. Jeff...
It is a well-known fact that marketing is a way to get the business off the ground. Without marketing, then no one will know about the goods and services a brand is selling. “Good marketing makes the company look smart. Great marketing makes the customer feel smart.” (Chernov).
There are over 28 million small locally owned businesses in the United States and 70 % of these businesses are owned and operated by a single person. Owning a small business is not an easy task it takes hard work and dedication, Steve Jobs once said “you need a lot of passion for what you’re doing because it’s so hard”, people don’t realize
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
In the article, "Strategies for Enhancing Small-Business Owners' Success" by Susan Turner and Al Endres, it is claimed that there is no specific reason as to why small businesses are failing in today's America. They believe, however that two factors can cause the demise of small businesses. These factors are small business financing and the marketing plans associated with those businesses. Small business owners are finding it increasingly hard to acquire funds to start up and help maintain a foothold in the business world. The authors state that this is due to the rising risks of propositions for investors and acknowledge that small businesses have to resort to using their own resources such as their own funds and bootstrap financing. Another
The objective of this paper is to perform market research for Starbucks’ President, Charles Shultz to ascertain the possibility of establishing new coffee houses in China. The preliminary research and design for presentation to Mr. Schultz includes: 1) Two to three alternative target customer segments; 2) the types of secondary research used; 3) the problem statement; 4) research questions used to guide the study; 5) major competitors for this market; and 6) the cultural, economic, and political factors that need to be considered in China.
Malhotra, N.K., 2002. Basic Marketing Research: A Decision-Making Approach. Upper Saddle River, New Jersey.: Prentice Hall.
Unfortunately, many small businesses fail or do not reach their full potential because the small business owner spends too much time working in the business, and too little time working on the business.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company, allows management to make the changes necessary for better results through adopting a proactive approach. Therefore, if a company wants to know what type of products or services would be profitable it should make a market research. Furthermore, a comprehensive research will enable the company to know about the product imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts to provide accurate information that reflects a true state of affairs. Due to market research the company can formulate a viable marketing plan and estimate the success of its existing plan. There are two main sources of marketing research information:
To help these businesses, a more appropriate or better marketing plan needs to be designed. Small business internet marketing services can help businesses develop and thrive in a highly competitive market. For the highest quality internet marketing services, hiring an online marketing company to design a customized internet marketing campaign may be advantageous for some businesses (EStartup business blog and contributors, 2010). Identifying the role that marketing plays in a successful business is demonstrated by the use of two examples, the importance of developing a marketing plan, and ethical and legal issues that surround marketing practices (EStartup business blog, 2010). To be a successful business, the owner of the business should use the marketing mix and the results of market research; having identified its key audience a company has to ensure a marketing mix is created that is targeted specifically to those people.
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.
On the other hand, weaknesses existed. The primary research was the most difficult and frustrating sector, for it was difficult to keep in touch with the potential competitors; hence, a chance to learn more and analyse deeper from the potential competitors was missed. To conclude, the result and analysis of primary and market research which was based on the questionnaire was not convincing enough, and it was the main sector which needed to improve in the future.