Marketing Intelligence and Buyer Behavior

This assignment delves into the crucial connection between marketing intelligence and understanding buyer behavior within an industrial manufacturing context. It examines how businesses leverage market research techniques and apply theoretical frameworks like Maslow's Hierarchy of Needs to comprehend customer needs and drive success. The assignment draws upon academic sources such as journals and textbooks, as well as online resources, to provide a comprehensive analysis.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
a) Market Research objectives.....................................................................................................5
b) Various market research techniques with their effectiveness..................................................6
c) Use of secondary data..............................................................................................................6
d) Validity and reliability of market research findings................................................................7
e) Market research plan................................................................................................................7
TASK 3............................................................................................................................................8
a) Market size trends....................................................................................................................8
b) Competitor analysis.................................................................................................................9
c) SWOT analysis........................................................................................................................9
TASK 4..........................................................................................................................................10
a) Techniques used for acquiring customer response................................................................10
b) Customer satisfaction survey.................................................................................................11
c) Review of success for conducted survey...............................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Markets fluctuate with customer tastes and demands. Businesses have to manage their
strategies in such a way that these fluctuations do not harm product positioning and customer
share. Marketing intelligence principle are henceforth applied in crucial strategies of every
business organisation. Informations are gathered and analysed for better hold over competition.
NEXT Plc is an emerging ruler of the retail industry with its dealings in clothing, footwear and
accessories which are available for men and women across Europe and Asia. The company
applies chief marketing intelligence principles to visualise its corporate image amongst
customers and other clients. This assessment will provide knowledge about various principles
and components that are related to market intelligence. A brief questionnaire will also be
depicted which will help in understanding customer satisfaction levels for NEXT. With help of
market research techniques and plan, the importance of conducting researches will be reported.
TASK 1
a) Stages of purchase decision-making process
The success of a product in respective markets is guaranteed when decision making
process of buyers is in complete favour.
Perception of need/Need recognition: When a person feels that he requires certain item
or product for fulfilling his desires or needs then purchase decision making process is initiated.
The nature of needs and requirements also helps in choosing respective product and the company
from where purchase is to be made.
Information search: Buyer gathers information regarding prospective product. NEXT
offers a wide variety of products in retail, clothing and accessories. If a person wishes to
purchase new clothes then he/she will first gather information about quality, pricing and the
desired texture (Malaval, Bénaroya and Aflalo, 2014).
Evaluation of alternatives: Comparisons which are made with other brand products are
known as alternatives. Once, all alternatives are weighed and compared then the customer
decides to purchase the desired clothing apparel. Often the third stage is hindered by
interferences or influences from external sources which change customer's mind set. Suggestions
from family members, relatives and other people or advertisements can change the decision of
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customers to buy the selected clothes. In such cases, the complete cycle is reverted back and
begins from the stage one again (Helm, Krinner and Schmalfuß, 2014). If this disturbance is not
caused then the buyers purchase selected product and complete its payment formalities.
Purchase decision: Final stage in purchase decision making is evaluation after buying.
When customers' evaluation of alternatives is complete and they develop a likeability towards
products of NEXT, then they pay necessary amount and take the product with them.
Post purchase evaluation: If performance of product is up to the customer expectation
then, no returns or exchange is processed. Post purchase evaluation is also a part of purchase
decision-making process. Customer expectations are met or not is decided at this stage.
b) Buyer Behaviour theories
Two dominant buyer behaviour theories that affects NEXT plc are generic and internal
theory. Trending markets and buyer decisions are interconnected. There are two types of
customers one who will purchase commodity only when needed in extreme conditions and the
other will purchase to fulfil shopping desires. Individuals from first category depict the generic
theory of buyer behaviour (Saleh, Ali and Julian, 2014). Decisions taken by such individuals will
impact NEXT's market share adversely. Huge profits will not be incurred because individuals are
specific in their choices and budgets. When customer expectations are fulfilled, then brand
loyalty is assured in rigorous competitive environments.
Shopping freaks, who have adopted this as their hobby, do not think about cultural
acceptance or any other barrier (Penn, 2017). They just purchase an item by comparing with all
possible alternatives in terms of quality, price and brand. Internal theory of buying behaviour is
dominant in such consumers. They get influenced by their own personality, thoughts and beliefs.
Markets are heavily profited with such buyers (Baker and Parkinson, 2016). NEXT launches its
seasonal clothing variations for such buyers who like purchasing. This creates a feasible
advantage for both the buyers and company.
Maslow's hierarchy of needs: The theory of motivation proposed by Maslow has specific
needs of individuals classified in various stages.
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The different needs of an individual are portrayed in above picture. Maslow's theory can
be used by NEXT's leaders and managers when they are targeting particular customers and their
needs. The selected product must be able to meet consumer's requirements from all of the above
categories in such a way that no other external influence can change their purchase decisions.
For instance: if a person wants to buy a new pair of sport shoes. This need is a self
actualisation need and company has developed a line of excellent sports shoes which can help in
fulfilling customer requirements of purchasing a footwear. Moreover, the classification of needs
helps in creating efficient quality products.
c) Circumstances affecting behaviour of purchaser
Every individual that resides in a society is affected by certain factors which bring
divergence in shopping behaviour. Dominant circumstances that affect purchasing decisions are
culture, social status and needs. Considering clothing options provided by NEXT for men and
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Illustration 1: Maslow's Hierarchy of needs

women, decisions will be made on these three factorial evaluations. All three factors are
connected deeply.
Cultural factors: Culture is formed from beliefs and trends which have been inherited
from the history (McQuarrie, 2015). Though evolution and globalisation have contributed to
various adaptable changes in culture but still it has to be respected and accepted. Individuals are
forced to purchase only those products which are culturally acceptable for residing peacefully in
a community.
Social factors: NEXT has to launch products which are in accordance with taste and
preferences of buyers. Social factors include occupation, income levels and position in the
society. People have to make purchases according to their class and expenditure limits.
Personal factors: Needs is being the first priority of lower income groups and last for
higher income groups plays a vital role in affecting the buyer behaviour (Sarstedt and Mooi,
2014). Henceforth, organisation has to manufacture products in relevance to these factors.
Psychological factor: There is another major factor that affects behaviours of purchaser
and that is psychological factor. Motivations, perceptions and attitudes which are formed due to
personality traits of an individual comprise psychological factors. NEXT can suffer losses if
consumers are demotivated for making purchases from the company. There can be variety of
reasons like better competitor products, pricing or quality. Additionally, an individual's personal
environment also helps in contributing to these factors which affects purchasing behaviour.
d) Brand loyalty, corporate image and repeat purchasing
Markets identify buyers with the help of three important terms that is brand loyalty,
corporate image and repeat purchasing. When people develop likeability towards a brand then
their maximum purchase belong to products of this particular company or brand. Brand loyalty
exists when such processes are initiated by the consumer. They would not switch to other
company unless product quality is deteriorated. NEXT has developed a good corporate image in
both national and international markets due to increasing brand loyalty of the consumers.
Perception of clients for a company defines the nature of corporate image.
Repeat purchasing is a phenomena which takes place when a consumer purchases certain
products from one company occasionally. A tendency to switch between brands is visible
amongst such buyers. Repeat purchase is considered as a parameter to measure brand loyalty and
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nature of the corporate image (Hollensen, 2015). All three terms help in evaluating market share
status and changing preferences of consumers. Meaningful strategies can be designed in
accordance with the values gained by these parameters.
The relationship between all these three terms can be with two characteristics that is
either negative or positive. Brand loyalty is automatically developed when repeat purchasing is
established. Customers will opt for buying products from NEXT only when they are satisfied by
quality and pricing of the company. In addition to this, if they are getting attracted towards a
product, then a perception can be gained that corporate image of company is positive. On the
other hand, declining number of brand loyal customers and repeat purchasers can be inferred as a
situation where corporate image of company is deteriorating.
TASK 2
a) Market Research objectives
When company has to gather information regarding target markets or audiences in the
particular industry, then market research are conducted. Objectives and targets are defined so
that researchers do not lose the purpose behind operation. It helps in aligning individuals that are
serving in the particular team or group and also gives a directional flow to their processes
(Zikmund and et. al., 2013). NEXT being a multinational company has to formulate certain plans
and strategies for analysing the market status. Regular surveys and research reports must be
formulated by the company so that customer satisfaction levels can be judged.
Business potentials are measured using market research techniques. Following objectives
are proposed for market research of NEXT:
1. To identify markets that can be developed for potential customers.
2. To measure current performance standards with regards to quality and quantity.
3. To understand customer preferences and market trends so that new product development
strategy can be designed.
These market research objectives will help in gaining better insight of clothing industry
and various activities that are going on in domestic and international markets.
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b) Various market research techniques with their effectiveness
Basically, market research processes are categorised into two broad classes’ i.e. primary
market research and secondary market research. The sources which are used for acquiring
respective information form the basis of this classification (Flint, Signori and Golicic, 2016).
Primary market research:
Surveys, questionnaires, personal interviews with customers, trials, experimentations and
information collection from focus groups are several techniques which are used for the primary
market research. NEXT has to hire a separate team of individuals that have expertise in
performing these operations. Data is directly collected from consumers which are precise and
accurate.
Secondary market research:
Balance sheets, industry research reports, government census, inventory records, sales
figures, statistics, etc. are secondary market research techniques. Sometimes, researchers aim to
gather huge quantity of information for deep routed research. Hence, secondary market research
techniques are applied. Decisions are made on collective results of both the techniques (Sarstedt
and Mooi, 2014).
c) Use of secondary data
The essence of conducting market research is to assess its objectives (Anastasia, 2015).
Following sources can be approached by marketers to collect information for NEXT:
1. Internal sources: Organisation's self maintained data base is used as internal source of
information for secondary data findings. Records and tracking systems which contain
statistical and numerical data regarding sales, marketing customers, etc. are internal
sources. These provide quality to the type of information being gathered. Product and
market development strategies are strengthened using internal sources (Fleisher and
Bensoussan, 2015).
2. External sources: When NEXT has to gather both quality and quantity information then,
external sources are accessed. These include government reports, census data, research
reports from colleges and universities, internet and business libraries. These provide
information of both present and past trends in market.
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These sources of secondary market research are utilised for increasing quantity of
research with achieving desired quality standards. It is important that acquired information is
precise and accurate. Diversity is gained in research findings which definitely contributes widely
to research objectives.
In order to meet the marketing research objectives for NEXT, secondary research has to
be conducted. To identify potential customers, surveys and online feedback forms can be used as
a source of primary market research. It will also help in meeting the objective of measuring
current performance standards. Secondary market research sources like competitor information,
government reports, etc. can be used for understanding customer preferences. All these
objectives and targets are accomplished successfully when data findings are relevant and usable.
d) Validity and reliability of market research findings
Despite of collection of huge volumes of data, often problems of invalidity and non
reliability are faced by researchers. Hence, it becomes essential for reporters to process a strategy
which will provide reliable and valid data. NEXT has to conduct market research for meeting
aforementioned objectives. The procedure and source of information applied for particular
findings must be genuine. This also implies that purpose behind complete processing must be
served with at-most accuracy (Stone and Woodcock, 2014). If researchers do not meet defined
objectives then findings are considered as invalid.
Reliability is another parameter which helps in categorising research is qualitative. Data
that is collected must be useful and in accordance with present scenario. When analysed the
findings must yield same result without any deflections. This proves reliability of market
research. If consistency is not maintained and major diversions are observed then, both validity
and reliability are not achieved. Be it primary or secondary market research, the complete set of
information must be valid and reliable. It can be possible that validity may exist without
reliability but vice versa situation cannot be taken into consideration.
The market research findings that are gathered by conducting secondary research and
primary market research. Since, all the objectives that were established for conducting market
research for NEXT are accomplished smoothly, then it can be concluded that market research is
valid. If organisation plans to create future researches, the current findings must be utilised. The
reliability of information collected, automatically exists when research data is valid.
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e) Market research plan
The proposed market research plan for NEXT plc is described ahead:
Company Overview: NEXT plc has been operating with about 550 branches in UK. Market
share of the company is feasible for achieving standard profits. In order to improve these
figures, organisation has to launch market research which will support future development
strategies.
Rationale: Market research findings will help in acquiring information regarding competitors,
customers and current market status of NEXT in retail and fashion industry.
Objective: To acquire information regarding customer satisfaction and competitor strategies
which will support new product development strategy.
Research methodologies: Surveys and questionnaires will be circulated amongst consumers
through online portals and feedback forms. Several government documents will also be
analysed for further research. This will provide quality and quantity with validity and reliability
to information.
Time Frame: This market research will be conducted for 6 months.
Budgets: About £55000 will be allocated to the research department for conducting valid
researches. A team of 15 individuals will be made and appointed particular roles so that time
and skills are effectively managed.
TASK 3
a) Market size trends
NEXT Plc is a retail multinational operating in clothing and fashion industry. In the past
few decades, technological developments and rising inclination towards automation has helped
industries globalise (Mullins and et. al., 2014). NEXT operates in dominantly in markets of UK
and some countries of Europe and Asia. Below mentioned are some features which have been
trending in past few years.
1. Better payment options have enabled users to purchase commodities and pay according to
their convenience. They can use plastic money that is credit and debit cards, online
payment options, cash on delivery, easy returns and refunds.
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2. Digital communities have emerged largely with widespread of internet. This has led to
high social influence on decisions and preferences of buyers. NEXT has to plan out all its
future strategies with regards to these societal changes.
3. Retail industry has emerged with a modernised model for pursuing consumers. This
model is referred as person-centric model which is designed in accordance with
individual needs and preferences.
b) Competitor analysis
Main competitors of Next are Marks and Spencer, Arcadia Group and Debenhams. Thus,
all such companies give tough competition to Next in terms of product and service quality.
Competitor analysis can be performed by using Porter's five force model. Major competitors of
NEXT are Marks and Spencer, Arcadia Group and Debenhams. Threats of substitution: Consumers need to be attracted towards company's products
otherwise, they will switch to products and services of competitors. This situation can be
tackled by introducing unique products with interesting labels and seasonal offers.
Moreover, quality must never be compromised (Fleisher and Bensoussan, 2015). Bargaining power of suppliers: Large number of suppliers have safeguarded NEXT Plc.
The bargaining power of suppliers is minimum in case of this company. Privilege of
choice totally lies in hands of NEXT which is a feasible situation. It will provide greater
variety of raw material at lowest possible costs. Competitive rivalry: When a business organisation performs sufficiently well then,
chances of rivalry increase. NEXT has been leading in UK markets since past two years.
There is still a lot of competition in international markets as clothing and retail industry is
excelling with great pace. Bargaining power of consumers: Business organisations are perceived by customers by
judging quality and pricing of products. Customers must not hold an opportunity to
bargain over fixed prices. This lineality can bring huge losses for NEXT. Hence,
strategies have to be designed by providing minimum bargaining power to consumers.
 Threats from new entrants: With increasing competition and entrepreneurial activities,
new entrants can pose a big threat. NEXT has to maintain its trading standards so that no
major loss of market share is experienced.
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 NEXT is facing a tough competition from Marks and Spencer a leading clothing brand.
Moreover, current strategies of the competitor can soon over power the company if
effective measures are not taken.
 From the competitor analysis it can be inferred that NEXT has good markets share when
compared to that of its competitors and this has to be managed effectively for sustaining
competition.
c) SWOT analysis
Strengths
 Product designs are remarkable and
unique.
 Diverse variety is provided by NEXT
to customers of all age groups and
gender.
 Efficient marketing and sales strategies
have increased company's performance
standards. Strategies implied for overcoming
competition have been successful.
Weaknesses
 Inappropriate pricing has led to
decreasing profit margins.
 The designs for formal wear have
become monotonous.
 Overseas stores have experienced a
decline in sale due to fluctuating
currency.
Opportunities
 Stores can be redesigned or renovated
as per budget allowances.
 Digital marketing techniques can be
implied for better coverage. Foreign markets can be explored.
Threats
 Increasing competition.
 With increasing rivalry, threats of
overtake are increasing (Sadgrove,
2016.).
Considering the formal wear branch of clothing by NEXT company for men and women,
following opportunities and threats have been identified:
 Designs can be improved and enhanced with help of digital designing software.
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 Several developing countries can be targeted for business expansion with this clothing
line.
 Threats from increasing competition have to be resolved by creating unique products with
cost effectiveness. Thus, it helps firm to bring uniqueness within firm and thus improve
business performance so that best results can be attained.
 NEXT holds an opportunity of using digital marketing techniques which can be implied
for communicating its products and services to customers across the world. Social media
marketing techniques involve use of Facebook, Twitter as a marketing platform. This can
be explored and used by organisation for attaining customer attention rapidly.
 Involvement of competitors actively with customers can be threatening to the company.
This situation can be turned to organisation's favour if NEXT also uses effective
engagement strategies like sponsoring events, active participation with non profit
organisations, etc. These techniques will develop a positive corporate image in eyes of
customers.
TASK 4
a) Techniques used for acquiring customer response
The following is the evaluation of techniques for assessing customer response:
Survey: This technique helps in obtaining recent data on customers. Its strength is that it
is relatively easy to administer. Al, it is cost effective method of obtaining useful information
which can then be used by Next Plc while formulating strategies. Moreover, survey technique
will facilitate Next Plc to collect a broad range of data from a large number of respondents.
However, it can be critically evaluated that the data obtained through survey may be unclear as
the questions may be interpreted differently by various respondents (Rajala, Töytäri and
Hervonen, 2015).
Interviews: This technique is effective in assessing customer response as it helps the
organization to capture verbal and non- verbal cues of the respondents. Moreover, this technique
is assertive in obtaining more accurate responses. However, it is a costly which makes it a
disadvantage of this technique. Large amount of personnel costs are incurred while conducting
interviews and interpreting the results. Furthermore, data cannot be collected from a large
number of respondents because it is time consuming.
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b) Customer satisfaction survey
For this survey, selected sample was of 30 customers that have made purchases recently
in our retail stores. Customer satisfaction survey is used for understanding the needs and
demands of the customers as well as their expectations with the company. NEXT can use this
questionnaire for understanding whether current products and pricing strategies are correct or
not.
QUESTIONNAIRE
1) Describe your satisfaction level while shopping with our company.
____________________________________________________________
2) Did the quality of product match your expectations?
 Likely
 Very Likely
 Highly likely
 Not at all
3) What factor impressed you while shopping at our stores?
 Price
 Quality
 Customer support
 Ambience
 Diversity in products
4) Was the prices for product a value for money investment?
 Yes
 No
If No, please provide your views_____________________
5) Would you recommend our brand to people related with you?
 Extremely
 Moderately
 Not at all
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6) What would you like to rate your shopping experience?
0 1 2 3 4 5 6 7 8 9 10
Very poor Excellent
7) What word would you use for referring our products ?
 Excellent
 Average
 Poor
 Very poor
 Never think about it again
8) Was the store staff and executive appropriate in their behaviour?
 Yes
 No
 If No, please elaborate____________________________________________
9) Did our product meet your needs and requirements?
 Quite likely
 Moderately
 Extremely likely
 Not at all
10) Would your prefer to purchase our products in the future?
 Yes
 No
Theme 1
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Did the quality of product match your expectations? Number of respondents
Likely 9
Very Likely 8
Highly likely 10
Not at all 3
Discussion and analysis-
From the above analysed data, it can be stated that quality of product is considered as the
key factor that satisfies the expectations of customers. Out of 30 respondents, majority of
customers have stated that quality products delivered by NEXT plc matches their expectation
levels. On the other hand, 3 respondents did see their expectations being fulfilled by quality of
products by the company.
Theme 2
16
Quality of product matches the
expectations of customers.
Likely
Very Likely
Highly likely
Not at all

What factor impressed you while shopping at our stores? Number of respondents
Price 7
Quality 6
Customer support 5
Ambience 3
Diversity in products 9
Discussion and analysis-
The above statistical result from questionnaire depicts that out of 30 customers 9 liked the
diverse range of products that is being provided by NEXT. Moreover, 7 customers were
influenced by pricing strategy while 6 are satisfied with quality. This depicts that company needs
to work on its pricing strategy as well as quality of products for gaining a competitive advantage.
Theme 3
17
Price
Quality
Customer support
Ambience
Diversity in products
0 1 2 3 4 5 6 7 8 9
Factors impressing customers while shopping at NEXT
Column B

Would your prefer to purchase our products in the future?
Number of
respondents
Yes 22
No 8
Discussion and analysis-
This graphical representation shows the number of people that think about repeat
purchasing from NEXT. Out of 30 customers 22 answered that they will prefer company
products in their future shopping sprees while 8 said that they won't come to NEXT so often.
This implied that brand loyalty towards the company can increase if appropriate strategies are
devised and implemented.
c) Review of success for conducted survey
A business strategy is completely successful when proper evaluation is performed and
measured. Above designed questionnaire is used for analysing customer satisfaction levels
during and after their purchase experiences with NEXT. These are important because company
can recognise their current working standards with a reality check. Often surveys and feedbacks
are ignored in strategic planning. This element is an integral part of every action plan as it helps
in managing flaws and implementing suggestions in future strategies.
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Yes No
0
5
10
15
20
25
Repeat purchase preferences
Column B

The success of this survey will be assured when maximum people will answer all the
questions without any bias towards the company. Unbiased judgements will help in creating
better strategies (Hollensen, 2015). It will help in highlighting areas which need more efforts and
techniques. Moreover, large number of positive feedbacks indicate that the market position of
company is quite strong as compared to competitors. NEXT has to be optimistic when negative
comments and feedbacks are considered. It will help in deploying improvements which company
was unaware in the past.
CONCLUSION
No business can function smoothly if appropriate analysis strategies or frameworks are
not adopted. This report has information related to buyer and his decision making process which
is segregated into various stages which are affected by different factors. It will help NEXT to
produce products which are capable to fight such purchase barriers. A set of objectives are also
defined for conducting market research with brief description of its various sources and
techniques involved. All these information is amalgamated in the form of market research plan
which has to be implemented for understanding customer satisfaction levels and parameters.
Hence, it is inferred that science of market intelligence must be applied for getting better outputs
of proposed strategies.
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