Problems In the implicit research and explicit markets 1

The implicit research and explicit markets

In the commerce field, most of budding enterprises are continually faced with a myriad of

challenges which affects the business in ways hitherto unimaginable and requires the

implementation of well thought out solutions. “Most small businesses aiming to enter a market

are usually faced with the inherent challenge of introducing their products into the market in

such a way that it attracts a positive reception by the target audience” (Ashraf, Hassan,

Ghafoor&Aslam, 2015). As a result, the managers are usually tasked with the ennobling role and

equally challenging task of devising a workable strategy that will ensure the successful entry of

the product to the market. Due to the lack of a standard solution to this ever-existent challenge,

some business have implemented strategies that attracted commendable success while others

have failed terribly in their marketing endeavors using that similar strategy. The managerial team

and the departmental heads are usually the major parties involved in the formulation of these

solutions and the implementation is the role of the workforce and subordinate officers. In order

to ensure a successful entry of a new business into the market, it is prudent for the managerial

team to conduct an extensive market research so as to tailor their products and services to suit the

consumers’ tastes and preferences

Problems In the implicit research and explicit market 2

From time immemorial, various entrepreneurs have been faced with the challenge of

entering a new market which is usually caused by various factors. Firstly, “the market dynamics

and emerging trends have played a substantially crucial role in the gradual and/or spontaneous

evolution in the tastes and preferences of the consumers” (Petkovic, Jaeger, &Sasic, 2016). Due

to these robust evolutionary changes in consumer preferences, it is the moral obligation of the

managers to continually devise products and services in ways that fit their target group. “Another

cause that has led to the failure of businesses at this level is the lack of a comprehensive financial

outlay to wholly finance a successful product launch.” (Ashraf et al., 2015) Most importantly,

the major cause of small businesses to fail at this level is the lack of conducting a comprehensive

market research to understand the market dynamics, existent competition and the target group’s

preferences so as to create an exceptional product or service value proposition that will attract

more sales. According to Ashraf et al., (2015), “About 75% of the small businesses in the world

fail within first five years of commencement.” Research has revealed that poor management

rarely causes failure of small business especially in developing countries Small enterprises play a

key role in alleviating poverty through generating employment in country. This ever-present

challenge has continued to influence the prosperity of some brands while on the other hand

facilitating the downfall of other ventures.

This challenge has far-reaching adverse implications which affect the well-being of

businesses and entrepreneurs. The major negative impact of this problem is that it has facilitated

the downfall of many ventures thus quelling the entrepreneurial culture within the nation. When

entrepreneurs fail to coordinate a successful market entry or product launch, “the colossal sums

of money that are lost discourages them from engaging in any entrepreneurial endeavors as they

will not have adequate finances to wholly take another risk.” (Baggen, Mainert, Kretzschmar,
Problems In the implicit research and explicit market 3

Lans, Biemans, Niepel, &Greiff, 2017) Additionally, this problem causes new businesses and

start-ups to have an infinitesimal market share making it impossible for the ventures to be wholly

self-sufficient due to use of ineffective strategies. Due to the ever-changing trend of this

problem, no standard solution has been implemented over the years as consumerism is usually

affected by umpteen factors. According to historical evidence, “the consumer trends have been

gradually changing over the years, and this has affected market entry strategies of various

businesses.” (Baggen et al., 2017) It is also note that different geographical localities exhibit

distinctly variant consumer trends. For instance, fast foods are highly preferred in the United

States but have fewer clients in countries such as Japan. It is, therefore, the requirement of the

managers and entrepreneurs to understand these existential discrepancies before rolling out a

product.

In order to enable entrepreneurs to successfully enter the market, an extensive market

research will play a profoundly vital role. Conducting a market research will equip the

entrepreneurs and upcoming ventures with the necessary information about the consumer needs

and the prevailing competition thus enabling them to tailor their strategies to cater for these gaps.

Economists and marketers will conduct a comprehensive market research that will analyze all the

variables that are essential in the prosperity of any venture such as the competition, consumer

preferences, emergent consumer needs and the prevailing government policies. This collected

data will be vitally important in the valuation of the products or services that they aim to roll out.

For effectiveness of this intervention, it’s the role of the managerial team or entrepreneur to

conduct the market research. However, in instances where the entrepreneur has minimal

knowledge in conducting an exhaustive market analysis, he/she should seek the services of other

experts who will aid in the collection of various data that will influence decision making.
Problems In the implicit research and explicit market 4

Understanding the market dynamics and operations will aid in the gradual abatement of various

unanticipated risks that may adversely impact the business. According to Baggen et al (2017), “a

market research will enable prospective entrepreneurs to understand the market wholly

facilitating sound decision making regarding market entry.” It is therefore noteworthy that this

method will provide the business owners with a myriad of viable options which they can

effectuate successfully and have decent returns on investment.

Despite the documented efficacy of this intervention, it also has some drawbacks which

affect its implementation. Conducting market research requires financial stamina which little

startups and small ventures do not have. As a result of the scarcity of funds, the market research

will not be as comprehensive as it ought to be, and various vital components will not be

included; the preclusion of certain aspects might hinder the workability of the final approach.

Additionally, another drawback of this intervention is the hiring of unscrupulous market

researchers who will collect information based on spurious basis leading to the implementation

of a market entry strategy that has not been wholly assessed and evaluated. This obstacle will

prevent the optimal functioning of the desired approach. The huge colossal sums of money

required for this process might receive criticism and possible revocation from other top

managerial members. Therefore in order to successfully abate these drawbacks, the business

owners should personally conduct the market research or use other feasible and credible market

researchers who will aid in the collection of verifiable market data.

In conclusion, it is important to reiterate that conducting extensive market research will

provide entrepreneurs with vital market data thus enabling them to effectuate rationally market

entry strategies thus evading the possible risk of business failure. This research project also
Problems In the implicit research and explicit market 5

conforms to agile mindset values. Firstly, it aims at providing a long lasting solution to the

entrepreneurs thus solving their needs through facilitating business prosperity. Secondly,

research also incorporates the value of divergent thinking as it encourages entrepreneurs to learn

about the market further increasing their chances of a successful entry into the market. Thirdly,

this intervention aids in social awareness as it enables the entrepreneurs to deduce the social

reasons behind the consumerism trends among the society members. Lastly, it facilitates the

development of entrepreneurial culture by encouraging entrepreneurs to take risks and invest

which further has a ripple effect on the nation’s economy.

Problems In the implicit research and explicit market 6

Works Cited

Ashraf, T., Hassan, M., Ghafoor, S., &Aslam, N. (2015).Strategic entrepreneurial decision-

making in small firms. American Journal of Social Science Research, 1(2), 85-89.

Baggen, Y., Mainert, J., Kretzschmar, A., Lans, T., Biemans, H. J., Niepel, C., &Greiff, S.

(2017)

Petković, S., Jäger, C., &Sašić, B. (2016). Challenges of small and medium sized companies at

early stage of development: Insights from Bosnia and Herzegovina. Management:

journal of contemporary management issues, 21(2), 45-76.