Quantitative Market Research Essay Example
The products currently on offer in the market are specialized AR products. Microsoft and Oculus offer AR gaming products while Google glass offers a glass-mounted display that can be used with mobile phones as well as run some simple applications. Layar offers a similar product that superimposes maps on the user’s field of vision. iLens wants to develop a product that offers the utility being provided by all the other products combined into one. In order to achieve any of the AR functions, a user has to purchase each of all the available products. iLens intends to remove the need to own multiple AR devices with all the functionality combined into one product. The new device would be able to connect with a user’s gaming machine, smart phone, or personal computer and act as an augmented reality display. In addition to offering an alternative world like in gaming, the product would also be able to offer functionality like superimposing details of buildings or directions in the user’s field of view.
It is predicted that with all this functionality, the product would command a huge market share even at a premium price. This is because the user would not need to have any other AR device. The product would be offered at a price of $1000, which is higher than the offerings from Microsoft and oculus but significantly cheaper than the Google product. Because of its multiple functions across different platforms, it is predicted to gain a market share of forty percent within the first year of sales. An ideal product name would be the iLens ONE. This would have the double meaning that it is the first offering from iLens and that it has all the functionality needed in AR in a single device.
Quantitative market research requires the definition of the problem, designing the research, collecting data, data analysis and writing a report. This is very important in marketing especially for a new product. It can be used to quantify the size of the potential market (Doole & Lowe, 2008). Because we already know the product and its price, quantitative marketing can be applied in order to determine the size of the potential market. This can be achieved by designing a questionnaire that asks potential users if they need such a product and at what price they would buy the product. These results are very important, as they would help in promotion and placement of the product. When all these are considered, the sample size can then be used to estimate the total size of the potential market. These people would be willing to purchase the product for use at its current price.
When considering international markets, there are a number of considerations that must be taken. Free markets operate on the same formula of demand and supply but there are underlying factors that must be considered. There are rules and laws governing the sale of some items in foreign markets. Because of privacy issues, stringent laws in international markets may govern our product. There are also issues of taxes, which vary in different markets. Taxes will have a direct effect on the cost of the product and must therefore be considered. There is also the factor of competing products. Foreign markets may already have competing products with a significant market share already and it would therefore be prudent to consider such products (Doole & Lowe, 2008).
Doole, I., & Lowe, R. 2008. International marketing strategy: Analysis, development and implementation. London: Cengage Learning. https://books.google.co.ke/books?id=UU1yPY2UwhMC&printsec=frontcover&dq=International+Marketing+Strategy:+Analysis,+Development+and+Implementation&hl=en&sa=X&ei=MagTVdTDO9fjaui0gZgI&redir_esc=y#v=onepage&q=International%20Marketing%20Strategy%3A%20Analysis%2C%20Development%20and%20Implementation&f=false