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MARKETING INTELLIGENCE

Word Count: 3563

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Pass 1.1
1.1 Using any relevant consumer product found at Tesco, describe the main stages of the
purchase decision making process customers go through.

Main Stages of Purchase Decision Making Process

Product: Beef Steak Burgers

Need Recognition:

The first and most important thing is the need of the product. I am going to purchase this product
because I have the need for this product. It’s holiday and I am feeling hungry and I have nothing
to eat at my home. So I will order the Beef Steak Burgers at TESCO.

Information Search:

The next stage is the Information Search. Recently, I ordered the beef steak burgers to the nearby
restaurant which is related to the Internal Information. So far as the External Information is
concerned, one of my friends suggested me to order the burger at TESCO.

Alternative Evaluation:

Last time when I ordered the burger, I had a bad experience as the taste was not up to my
standards. Now I have the alternative to go for TESCO as a result of the positive perception in
my mind.

Purchases decision: On the basis of the alternatives in my mind, I have to take the decision
regarding my purchasing. I find TESCO at the best alternative, so I’m stuck with it and I’ll go for
it.

Post purchase behavior:

The post purchase behavior leads to the response that I had after eating the burger. I had the
mixed feelings about myself. The burger was tasty and good but with too many calories in it as
compared to the previous burger that I ordered.

1.2. Explain theories of buyer behavior in terms of Maslow’s hierarchy of needs and
diffusion of innovation theory using relevant examples from TESCOs plc.

Theories Of Buyer Behavior:

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Basically, there are two famous theories regarding buyer behavior namely Maslow’s Hierarchy
of Needs and Diffusion of Innovation. These theories are being explained with the example of
the product from TESCO PLC.

1.Maslow’s hierarchy of needs

Taking the example of the Beef Steak Burger ordered at TESCO, it can be put into Maslow’s
Hierarchy of Needs theory which has five levels of needs:

 Physiological needs
 Safety needs
 Need of love and belonging
 Need of esteem (for oneself and from the others)
 Need of self-actualization

So far as the example is concerned, it belongs to the 1st level of need as it deals with the
Physiological needs (Hunger, Oxygen, water etc) and hunger is one of the primary needs
that any human is facing.

Apart from the example of burger, if we focus on other levels of needs, we come to know
that TESCO’s products deal with all levels of the needs. There exists almost every
product that deals with each level of the Need, regarding Maslow’s theory such as Home
accessories, car accessories, sports, food, party and gifts, technology and gaming,
entertainment, clothing and jewellery etc.

2. Diffusion of Innovation:

The diffusion of innovation theory is of the view that communication of innovation is done over
the time, through channels that members of the society adopt. They have different origins in this
regard. There are certain categories of the members who adopt to this innovation as:

1. Innovators: The members who are the first ones to adopt the innovation. In TESCO’s
case, the people who are from the high social class, the innovators are the ones who buy
the product in the earliest time of the launch. Innovation usually deals with the
technological products like Gaming, Cameras, Computing, I-phones and Fitness Monitors
etc
2. Early adopters: Early adopters are the second fastest people of the category who adopt
the innovation after innovators.
3. Early Majority: This category consists of the people who adopt the innovation after a
certain period of time.
4. Late Majority: This category deals with the people who adopt after an average number
of the society adopt that. They are usually in contact with the previous members who
have adopted it earlier.
5. Laggards: They are the last ones to adopt the innovation. They are the ones who don’t
adopt the innovation easily. They are resistant to the change normally.
(Mahajan et al. 2000)
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1.3. Explain the factors that affect buyer behavior using relevant examples from Tesco.

Factors affecting buyer behavior at TESCO:

In case of TESCO, take the example of I-phone that anyone is going to purchase. Apart from just
purchasing the product, there are certain forces and factors that affect the buying behavior. They
describe about what are the motives, forces and factors that can influence the buying behavior.
These factors are as follows:

1. CULTURAL FORCES: Cultural factors include the culture, subculture, and social class. So
far as the current example is concerned, culture is concerned with a specific society and the part
of the society from where and individual belongs and his behavior is the cause for it. (GAJJAR,
2013) Subculture is further subgroup of the culture like a particular society or geographic
location. Taking the above example, subculture and culture, both have impact on consumer’s
choice of the product(Iphone).

2. SOCIAL FACTORS: As far as the social factor is concerned, certain products represent a
particular social class. For example, in the case of Iphone, it is usually linked with the high
socio-economic class of the society. It has become a status symbol in almost every society.

3. PERSONAL FACTORS: Personal factors include age, occupation, lifestyle and personality
that any individual is having. (GAJJAR, 2013) One may purchase a specific product for his own
personal factors that lead him to buy that product. Need comes first, then there are personal
factors that influence a lot in purchasing it. e.g. Iphone is associated with a personality that is
highly innovative in choice and good lifestyle.

4. PSYCHOLOGICAL FACTORS:

Psychological factors include perception, motivation, learning, beliefs and attitudes that an
individual of the society has. The buying behavior has strong relationship with these factors. For
example, one has a positive perception about Iphone, he is highly motivated and he has learned
about Iphone. After that, he has a strong belief and his attitude is towards buying it, then he will
surely go for purchasing it ultimately. (GAJJAR, 2013)
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1.4 Using Tescos and Marks and Spencer, evaluate the relationship between brand loyalty,
corporate image and repeat purchasing.

Relationship between corporate image, brand loyalty and repeat purchasing at TESCO:

Taking into account the overall brand image of TESCO, it has a policy “good, better & best”
about its product. So far as the corporate image is concerned, they provide their customers the
value for money, with a wide range of products and services.

As brand loyalty comes at TESCO, TESCO has a customer loyalty scheme named as Clubcard
which is a good thing to build the brand loyalty of the customer. Keeping in mind the corporate
image and brand loyalty at TESCO, there is a very strong relationship among them which leads
to the repeat purchasing at TESCO. There is very strong association between these factors.

Relationship between corporate image, brand loyalty and repeat purchasing at MARKS &
SPENCER:

Marks and Spencer offers a wide variety of products and services to its customers as it is one of
the major multinational retailers in the world. It has the brand concept “Your M&S” which leads
to the unique relationship of the retailers with customers. Your M&S is basically a concept that
promotes the brand loyalty and reminds the customers about the good quality products at good
prices. So there is a strong relationship between these factors, which ultimately lead to the repeat
purchasing.

Pass 2. Imagine that you need to open a shop or restaurant near Brit college.

2.1. Evaluate the different types of market research techniques you will use to obtain
information.

Business I want to Start: Restaurant

Market Research Techniques:

Basically, there are two major techniques for market research namely Qualitative and
Quantitative Research.

Qualitative Research:

Before opening the restaurant near Brit college, the first thing I will do is to have the market
research in that particular geographical location. The best location will be the college itself. I
would conduct the interviews with college students and teachers there and ask for their opinion
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and choices regarding the restaurant. If there is another restaurant already, I will go there and ask
the customers about their opinion of opening the new restaurant and what changes they expect in
the new restaurant. This research will better help understanding the preferences and choices of
the customers about what kind of lifestyle they have? What kind of food they like? How much
money they are willing to pay and can afford etc. On the basis of the results generated, the
evaluation will help to keep fulfilling the requirements and understand the market dynamics.

QUANTITATIVE TECHNIQUE:

Quantitative technique is related with the numerical data analysis. The best way to collect the
results is through Questionnaire designed for the relevant data collection. In case of mini project
of restaurant, I will design a Questionnaire and get it filled from the college students as well as
the customers from the nearby restaurant to get the results and their preferences. The best way to
get the results more accurately is the qualitative technique and the best tool is the questionnaire
filled by the respondents.

2.2. Explain the various sources of secondary data you will use to achieve your research
objectives.

Sources of Secondary Data:

So far as the Secondary data is concerned, it is the data that already exists in the previous
researches been made. In the case of mini project (Restaurant), the secondary sources that I will
use will be the research material existing already in the journals, articles, newspapers, reports
including internet, libraries. I will be using these sources of data as they will allow me to build
my concepts and thoughts about my area of research and will make my research more
meaningful. This data will provide better understanding and the direction towards my research.
Another advantage of the secondary data is that it helps to find the gaps in the previous
researches been made and allows the primary user to fill those gaps by conducting a further
research. I am of the view that secondary source open the doors for new user to conduct the
research and get his/her results in a better way as the previous data is already there and it clears
the direction towards the research that one is going to conduct in the future. It is a guideline
towards the primary data collection. Previous source helps to get the previous information and
the primary source will further clarify it.
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2.3. Assess the validity and reliability of the market research findings you have got from
your research.

Validity and Reliability of the Research:

The reliability of the research describes that whether the opinion of the majority is in favor or
not. In case of mini project, the reliability test was applied. In order to check the reliability of the
instrument that we are using, the data collected was analyzed. Reliability test was conducted,
after collecting the responses from the respondents. The table is given below:

Chronbach’s Alpha Cronbach’s Alpha based on Number of items

standardized items

.839 .817 42

The above table shows the reliability test results. The data analysis was made through SPSS
software and the Chronbach’s alpha value is greater than 0.5, so it means that the instrument is
highly reliable.

 In order to check the validity of the research, the questions of the research clarify whether
the questions truly reflect the issue we are dealing with and make sure the related subjects
must not be excluded. Mainly, content validity is checked to see whether the content is
valid or not regarding our research. Our research clearly shows the validity according to
the results. Validity is also influenced by research design. It also depends on asking
exactly what we want to know in the form of research questions.
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2.4. Prepare a marketing research plan that you used to obtain your information.

MARKETING RESEARCH PLAN:

Problem Definition:

The mini project is about the restaurant that we want to open near Brit college. The restaurant
will be a fast food restaurant that will provide a quality fast food and meet the standards. The
idea is generated on the basis of the secondary data collected which shows that there is strong
need of a fast food restaurant that students can afford easily. Our restaurant will provide
the membership opportunity to the students. A small portion of the
restaurant will consist of an internet café that will provide the internet facility
to the students.

Type of Research:

The type of research used in this project is of quantitative in nature. The data used was of
numerical type. The results would be generated in numbers and the numbers will better prove the
results in accurate way. We generated the hypothesis whether to launch a fast food restaurant or
not.

Research Design:

In order to check whether our hypothesis is inclined towards the right direction, we carried out
initial research in the form of literature review. For this purpose we gathered information from
various articles about our research. Thus in order to prove our hypothesis, we conducted
quantitative research. Through this method, we have conducted a questionnaire survey to gather
the relevant information from our target population. The sample size was 15. The scale used was
the likert scale and the questions were developed on a five points rating scale.

Data Analysis:

The data collected through the questionnaires was analyzed. The results and findings showed that
we need to open a restaurant, specifically a fast food restaurant that is easily affordable for the
students.

Pass 3.
3.1 Using your mini project of the restaurant or shop near Brit college, assess market size
trends within your market.
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In order to assess the size of the market trends, analysis of the market is
very necessary. The market analysis is basically the SWOT analysis which
deals with the strengths, weaknesses, opportunities and threats. The market
analysis helps in making the future decisions and understand the current and
future scenario of the market. Market analysis consists of the following:

Market segmentation

The basis for market analysis is the market segmentation. The competition in
the markets has increased in the modern world. It has leaded the consumers
to demand more individually. Nowadays, customers are very well informed
and aware of the market trends. Marketers have to move according to their
choices these days.

Market size:

Market sized is described as the potential and the volume of the market. In other words, the sum
of all sales volume and the quantity of the customers is the market size. How much size of the
market is and how many potential is in the market as well as the customers. Market size can be
determined by collecting the data through surveys and the data provided by the Government as
well.

Market Trends:

Nowadays, the market trends are changing very quickly. The marketers have to be informed
about the consumers as well as their competitors. In today’s world, it is important to do the
consumer analysis as well as the competitors analysis to survive in the market.

Market Growth Rate:

Market growth rate is all about the historical data of a market. Future decisions are made on the
basis of the historical data provided. If the marketers are having the previous data, they will be
able to make decisions on the basis of this data.
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3.2Using your mini project of the restaurant or shop near Brit College, plan and carry out
a competitor analysis for your intended shop or restaurant.

Before starting a new business plan and to implement it, it is very important
to carry out the analysis of the current market trends. In the context of the
market analysis, the most important thing is the competitor’s analysis. A new
entrant must do the competitor’s analysis before entering the market. He
must know his competitor’s strengths and weaknesses so that he can survive
in the market. In the case of mini project of restaurant near Brit College we
need to know who are the market leaders and competitors.

Competitors:

There are two major competitors near Brit College:

1. Tai Pan
2. The Crown Bar and Restaurant

As we know there are two main competitors and they exist in the market but
we have one edge over them. We are different in the way that there is no
proper fast food restaurant nearby. It will be good sign that fast food
restaurant will be there and the most important edge over our competitor is
that it will provide the good quality food especially to the students as they
can’t afford the competitors prices. Our restaurant will provide the
membership opportunity to the students. A small portion of the restaurant
will consist of an internet café that will provide the internet facility to the
students.

We will analyze the past data of our competitors and we will make decisions
according to the situation. Our strategies will mainly be concerned with the
competitors performance in the market.
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3.3 evaluate the opportunities and threats for your mini project restaurant or corner shop.

Opportunities:

 The taste of people change which makes the market trend to change and it’s an
opportunity for us as there is no fast food restaurant other than us nearby.
 There is a good opportunity to invest in this restaurant to attract the customers
 Special deals will be provided to the college students
 Special events will be arranged in the restaurants for the college students
 Our restaurant may provide the opportunity for the students to work as the part time
employees and they will be provided with good wages.
 Low prices will attract the customers
 Free internet facility will be provided, which is good for cyber students

Threats:

 Biggest threats are the competitors that we are having in the surroundings
 It would be challenging to maintain the quality of the food
 We will need to differentiate our product from competitors
 Increasing the number of sales would be a challenge for us

4.1 Evaluate techniques of assessing customer response once you set up your corner shop or
restaurant.

Once we set up our restaurant near Brit college, it is necessary for us to get the response from the
customers about our restaurant. There are different ways to get responses from them:

1. Ask: One of the techniques is to directly ask the customers what they want? What kind
of food they like? Do they like what we are offering? What changes should be made?
2. Surveys: Each time the customer enters the restaurants, he will be asked to give his
phone number of email to get registered. This will help us to recognize them and we can
ask them to give their feedback. We will also provide them the survey forms to fill and
give their responses.
3. Suggestion box: Another technique is the suggestion box. The customers can drop the
suggestions in the box. At the end of the day, the suggestions would be collected and will
be implemented where needed
4. Random survey: We often do random surveys inside and outside the restaurants to get
the feedback and improvements needed
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5. Social Media: We will create an official page on Facebook and ask the customers to
join. This will provide a platform for all the customers and they will be able to share their
feelings and suggestions in the group about our restaurant and give feedback.
6. Free gifts: we will use a scheme for the customers. Names of the customers will be
added in the lucky draw and the selected ones will be given the gifts.

4.2, 4.3 design and complete a customer satisfaction survey and review the success of a
completed survey

Survey: A customer satisfaction survey will help us to check the performance of our restaurant
and the brand image that we have build. This survey will consist of a questionnaire. The
questionnaire will relate to the questions of 4 Ps of the marketing. These 4 Ps are Product, Price,
Place and Promotion. There will be 10-15 questions in the questionnaire and customers will be
asked to fill them. This is basically a kind of feedback that will measure the customer’s
satisfaction. Customers may be asked the questions directly and face to face. They may be given
the survey forms to fill and get their feedback. Customers may get phone calls from our
restaurant and ask them about their last visit at the restaurant.

Design:

The survey will consists of the different techniques like questionnaires, telephonic interviews,
face to face survey etc. the questions will be related to the 4Ps of marketing. e.g What is our
product? What is its price? Where are we going to sell it? What advertising is needed?

Review:

After completing the survey, we will review the survey and generate a mini
report which will show the customer satisfaction. This report will show
whether the business we started is going successful or not. What goals have
been achieved and how many are still to be achieved? We will keep doing
such kind of surveys after a particular time period. This will help us to get the
historical data and will help to make future decisions and strategy building.
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References:

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decisions in a complex world (Vol. 2). RWS publications.

 Webster Jr, F. E., & Wind, Y. (1972). A general model for understanding organizational
buying behavior. Journal of marketing, 36(2).

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 Meade, N., & Islam, T. (2006). Modelling and forecasting the diffusion of innovation–A
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