1. What types of market research should Kiki employ to determine the market potential for the magazine?
Market potential is a measure of the capability of sales of goods or/and services of any category by all companies that operate in this market segment. Concerning marketing research, there are two common types: fundamental and applied. In order to determine the market potential for “Kiki” magazine, the applied marketing research should be used. This type is aimed at determining the demand on company’s product, the level of consumer loyalty, brand image of the product, the condition of distribution channels, the level of service quality, etc. As features of an external environment are known in general, the main marketing factors are defined. For example, major forms of print media in the publishing industry, publishing market value, types of magazines available in the market, amount of competitors, segment of the magazine marketplace, target audience of “Kiki”, etc.
Applied marketing research is carried out through different methods. In the case of “Kiki”, method of observation, quiz or experiment can be used. Observation method based on the observation of a group of people or different situations and subsequent analysis of the factors, most important for ongoing research. This method can be used for different purposes, as the main, additional source of data as well as to verify the data obtained during the study. All observations, depending on the nature of the studies, can be divided into several groups: direct or indirect observation, overt or hidden, having the structure or lack thereof, with the introduction of technology and without introduction. Direct observation is a recording of specific actions that take place in real time, such as a sequence of buying magazines in the supermarket. Indirect observation uses statistics, such as the dynamics of buying magazines over the past few years, to study the situation in the market. An experiment method is used to explore causal relationships that determine the buying behavior. For example, “Kiki” can place couple advertisements in the magazines, where some discount coupons or cinema ticket can be offered. While quizzing customers, the question on the reason to purchase the magazine should be stated.
2. By targeting the nine to fourteen year old market, Kiki will need to attract new nine year old girls each year and will lose readership as they age. What are the challenges that this presents to Kiki?
Attracting customers is an important task for any company, because any user brings the company profit. In order to attract customers, it is important to offer them something that they require at this stage. For this product or service must meet all customer’s requirements, including color, packaging, functional features, quality of service and more. Nevertheless, attracting customers may have some challenges for “Kiki” magazine’s producers. The attraction of new customers is accompanied by the departure of former clients. The company’s management should pay close attention to the indicator of “apostasy” (the ratio of buyers to sever relations with the supplier, to the total number). For periodic publication the rate of readers’ retention is, for example, in stable circulation, increasing the number of subscribers. Also, in the process of attraction of new customers, the focus is made on the process of sale technology rather than formation of strong relations with the customer. Thus, “Kiki”, enjoying the capture of the new customers, may concentrate its efforts on the necessity to sell many magazines, offering interesting items, but old customers may note the difference as they are aware of company’s product.
References:
Kotler, Phillip, Armstrong, Gary, Wong, Veronica & Saunders, John, Principles of Marketing. 5th ed. New Jersey: Prentice Hall, 2008. Print.
Brassington, Frances and Pettitt, S Stephen, Principles of Marketing. 4th ed. Pearson: Harlow, Essex, 2006. Print.
