Managing new ventures - Essay Example

Managing new ventures Market research When an organization wants to start a new business venture in their own market or in any foreign country or foreign market, it has to carry out an in-depth research and analysis of that particular market. So, Market research is a process in which the market will be studied from various perspectives, particularly the external factors like political, social, economic, technological factors. In addition, as part of that research, factors that will impact the ‘immediate’ external environment particularly the prospective customer base and its competitors will also be studied.

This research will be carried out by the organization themselves or even by some external agencies. Information about customers As customer is the “King” of any business and as the organization manufactures its products or offers its services only to sell it to the customers, they have to be studied as part of market research. That is, customer’s preferences regarding the products’ price, quality, packing, appearance, etc has to be studied and those information can be used while designing the product and also while formulating the marketing campaign.

Berman (2007) state customer preferences, buying habits, their demographics, language and other trends of particular markets must be evaluated. Competitors’ information Intensive market research can enable an organization to identify the strengths and weakness of its competitors. By understanding those aspects, organization can have good information about the things that were working out well for the competitors, as well as the things that has caused failures. With that information, the organization can design its products and its marketing campaign accordingly, thereby increasing its competitiveness.

Moreover, the organization by avoiding the failed strategies can prevent any harm to them at an early stage.Market research that can be used The process that can be used to do the market research is market positioning (McMahan 2006). According to McMahan (2006) market positioning process involves 5 steps: an identification of the target market, a understanding of the competitive environment, strategy formulation for improving competitive position, establishing strong brand image, and development of a supply chain program.

This process can provide effective results because it focuses on all aspects of external environment and also the management of any organization. Unlike internal forces, external forces are not directly controlled by the management of an organization, so they need to be studied in-depth through this process to get effective results. ReferencesBerman, B 2007, Retail Management: A Strategic Approach, Pearson Education, New Delhi.McMahan, J 2006, The handbook of commercial real estate investing, McGraw-Hill Professional, London.