MM explain the limitations of marketing research used to contribute to the development of a selected organization's marketing plans Tests uses primary research to gather information about their customers, competitors and the environment. They collect information that has not been collect before and uses both Internal and external primary research methods.
Internal research Includes Tests customer's data, whereas external research Includes questionnaire and surveys, experimental introduction of new products, interviews ND focus groups and observation techniques.Tests is likely to use its secondary data to determine what type of primary data is required to be precise and not waste and money on gathering data that has already been gathered. Other types of methods used by Tests are qualitative and quantitative research. Qualitative research Is used to find out more about customer's needs, personal experiences and background by asking questions such as asking the customers what products they buy most at Tests and what their preferences are, why they choose to shop at Tests ever other over other food retail stores and how would the customers be affected by changes in prices.Tests also uses quantitative research, which includes Deco's sales, percentage of customers choosing the same answer in a quantitative questioner, this can later be analyses.
Market research is highly beneficial for business such as Tests, however sometimes it can be a difficult process as there are a few research limitations that can affect Deco's marketing plans. Every marketing research has the potential to be wrong Hereford Tests should plan its research carefully in order for it to be effective and bring out accurate results.Some research techniques are very expensive and are not affordable to certain businesses therefore Tests has to make sure that the cost of the research Justifies its quality. Another limitation of marketing research Is reliability, which shows how reliable the Information collected Is and whether the Information would be the same if collected from a different group of people.Tests should target he most suitable group of people to question in order for the information to effective and beneficial for the organizations marketing plans, such as to improve customer service at Tests.
Validity of data collection is also a limitation of market research; Tests has to make sure that the Information gathered is accurate as people mighty answer randomly out of laziness and the end result will turn out to be Inaccurate causing Tests to carry out another research, consuming Deco's times and money.Tests collects its customers information for organization purposes, however there is n act that protects the use of customers personal information by the business; Data Protection Act 1 998, it makes sure that customers personal information Is not used the information on its data is; Used only with customers permission and for the purpose it was collected for Kept up to date and not kept for longer than necessary Subject to procedures to prevent illegal processing, accident loss or damage to personal data This act is highly beneficial for the customers whereas Tests could be sued under this act in an event of loss of information or in a case where customers information is accessed by inappropriate individuals or organizations, this would have a huge impact on Tests as it holds information of millions of customers and the amount of money Tests would have to pay each customer would be huge, leaving Tests in loss and affecting its marketing plans, such as expansion. Deco's main objectives are too maximize profit, improve customer service and provide affordable goods therefore being sued under the Data Protection Act would limit their ability to achieving any of those objectives. All of the research limitations mentioned above would affect Deco's arresting plans in ways such as if Tests decided to improve customer service or increase sales and therefore carried out research which would not be accurate enough, Tests would end up making a wrong decision and also spend money and time on an ineffective research.
If Tests decided to carry out research to find out whether an increase in prices would decrease the demand for its products and target a wrong group of customers to question, the results would once again be inaccurate and would result in Tests losing those customers that would be highly effected by the increase in prices. The information gathered for market research is very useful and reduces the chances of the business making the wrong decision. Before coming up with a marketing plan Tests must always carry out research in order to have an idea of whether the plan is appropriate for the company. As mentioned above, there are some marketing research limitations which Tests should be aware off when carrying out a research so that it would be affective and therefore improved the chances of a success and reduced risk.
