Santa Fe Grill

Assignment 1

MKTG 4100, Summer 2013

1. What type(s) of research program(s) should the owners of the Santa Fe Grill consider?

Based on their target market, families with children between the ages of 18 to 49, the owners of Santa Fe Grill should consider a market segmentation program. They need to consider the Household by Type information rather than the gender and age information. Household by type would provide them with data about their specific target market. According to an article from True Influence, the importance of targeting you potential customers plays a key role in the success of the business. “The goal is simple - to be able to deliver the right marketing message to the right prospect. If prospects aren't grouped appropriately, this basic task is impossible” (True Influence, 2012).

1. Is a research project actually needed? If yes, what kind of project?

Yes, a research project is needed. In this case, secondary data does not answer the question for the current problem; therefore, primary data is needed. The owners want to know what would drive potential customers to eat in their restaurant and what they can do to differentiate themselves from the competition. Santa Fe Grill should conduct an importance-performance analysis and a customer satisfaction study. An importance-performance analysis should help the owners to know what are the strengths and weaknesses towards the competition. A customer satisfaction study should give the owners the information about how are they perceived by the customers and what changes they need to make in order to fulfill the needs of their potential customers.

1. What areas should the research focus on?

The area the owners of Santa Fe Grill owners should focus is on customer satisfaction. Given that its competitor may offer a similar menu, Santa Fe Grill must differentiate from them by offering a better experience. They should not focus on the freshness of their ingredients (the competition would probably offer it as well), Santa Fe Grill should focus on the offering a better service and experience. Nowadays, customers choose a place to consume not based on the product but on “the experience” they get at that place. The quality on the products is now expected and it is not a competitive advantage anymore. For example, why would you pay $4 for a cup of coffee at Starbucks when you can buy a similar cup of coffee for $0.50 somewhere else? Starbucks’ customers pay for something more than getting a coffee. Starbucks offers its customers an experience in every detail they can perceive and these customers become loyal customers.

1. Is the best approach a survey of customers? Why or why not.

The approach to survey a customer must always meet the professional standards. The marketing research must follow the codes of ethics given by the Marketing Research Association. If anonymity to the respondents is promised, the customers’ information must not be shared and practices such as sugging must be prohibited.

Work Cited:

True Influence. 2012. Defining Your Target Markets: Nothing matters more than the LIST. Retrieved on June 5, 2013 from http://help.trueinfluence.com/kb/campaigns/defining-your-target-markets-nothing-matters-more-than-the-list

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