In this task I will be looking at the limitations of marketing research, and to do this I will be discussing how marketing research can help develop a marking plan. I will also be looking at the weakness of development in a marking plan. I will also be comparing the two techniques, SWOT and PEST in terms of their usefulness. From this task I will be using the Business level 3 Book 1 and a few websites which will be referenced in brackets at the end of each paragraph which needs referencing.
How market research can help develop a marketing plan?
Market research can help a marketing plan because it will give you the precise and exact information on what is needed to create something successful. An example of marketing research helping a marketing plan is when Sainsbury's are bringing out a new flavoured crisp. They are doing this because the old flavour is in decline and not selling anymore. Before Sainsbury's unveil their products on their shelves, they need to be sure that the new product will sell, so they do research such as surveys, questionnaires, focus groups etc. With the information they have collected from the research, they then can bring out a product that they are sure many people would buy. Doing research helps because , they are so sure that people would like the product and this will increase the sales drastically if they use this strategy for other products as well.
What is a marketing plan?
A marketing plan is system used when bring out a new organisation, product, feature etc. Following a marketing plan can turn the thing you are creating into something successful. For example, Sainsbury's uses the marketing plan when they are diversifying. Diversifying, means creating a new product for a new market. This is risky as you are not sure, if the product is going to be successful or if it will be a complete failure.
Limitations of market research- costs effectiveness, and validity of data collected
No matter how small or large a market research project may be, any type of research performed poorly will not give relevant results. In fact, all research, no matter how well controlled, and carries the potential to be wrong. There are many reasons why research may not give good results but a common problem is deciding whether the research is really measuring what it claims to be measuring.
Marketers must decide how reliable is the information obtained. Would similar results be obtained if another group containing different respondents or a different set of data points were used? For example, if 50 customers participate in a research study focusing on customer service, is the information obtained from these 50 customers sufficient to conclude how all customers feel about the company `s level of customer service?
What if the same study was done again with 50 different customers - would the responses be similar? Reliability is chiefly concerned with making sure the method of data gathering leads to consistent results. (Reference : Business level 3 Book 1)
Budgetary limitation is an important factor when it comes to marketing research. It is important because it involves keeping within a limit when trying to research a successful product. Sainsbury's main factor of making a product successful is through advertising. The marketing sector of Sainsbury's budget them equally. For example, they would put money aside for advertising, put money aside for primary, secondary, and put money aside for material and labour costs.
It can be expensive for Sainsbury’s to gather and process data, many organisations may lack the expertise to conduct surveys to collect primary data whatever the benefits are which would be beneficial to the business. They also may lack the funds to pay special market research groups to collect such data for...