Principle of Marketing(Electrolux)
1. What is consumer insight? What are some ways in which Electrolux develops consumer insight? Consumer insight is the fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationship. Companies always use consumer insights to develop their competitive advantages. Although consumer insights are very important for building customers’ value and relationship, consumer insights are difficult to obtain. To gain good consumer insights, marketers must effectively manage marketing information from wide range of sources.
Insights into consumer behavior on how consumers think, feel and act when they use products are the basis for all product development within Electrolux. Electrolux has employed some methods to get consumer’s mind and understand their needs and wants. Electrolux conducts interviews and visits to households on a large scale. Through these activities, they collect consumers’ opinion and answers about their own experiences and needs, and then they observe as respondents use the appliances in their homes.
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The observation and answers are then used as triggers in the development of new products or prelaunch of existing ones. 2. Describe how Electrolux might go about developing product if it were focused solely on engineering and technology. What might be the result of this product-development process? If Electrolux only focus on engineering and technology in developing product, they may neglect the consumer insight. Electrolux can produce high-tech and high-definition appliances by their advance engineering and technology; however, the appliances may not be the consumers most desire appliances.
Hence, these may cause the product development process to fail as the appliances designed may not be likely accepted by most of the consumers. We cannot deny that the benefits received from advance and high quality products are desired by consumers. However, in new era, consumers have their own thought; they know what they need and what they want. They are not easily directed and influenced by others. Therefore, the big companies are unable to tell the consumers on what products they need and what products should they buy. Therefore, the developing process which is not solely focus on consumers’ needs will most probably fail.