3) Discuss the importance of target market analysis. How does it affect the development of market planning for a particular company? Target market analysis provides useful information for identifying people (or companies) an organization wants to serve. In addition, it helps management determine the most efficient way of serving the targeted group. Target market analysis attempts to provide information on the following issues: •New product opportunities
•Demographics, including attitudes or behavioral characteristics •User profiles, usage patterns and attitudes
The effectiveness of a firm’s current marketing program. Benefit and lifestyle studies, which examine similarities and differences in consumer’s needs, are a major category market segmentation studies. Determining why consumers behave as they do becomes the critical interaction between marketing research and program development.
4) What are the advantages and disadvantages for companies maintaining an internal marketing research department? What advantages and disadvantages can be attributed to the hiring of an external marketing research supplier? Marketing research providers can be classified as either internal or external. Internal research providers are typically organizational units that reside within a company. Firms enjoy many benefits by keeping the marketing research function internal. Those benefits are: •Research method consistency
•Shared information across the company
•Lower research costs
•The ability to produce actionable research results
External sources, usually referred to as marketing research suppliers, perform all aspects of the research including study design, questionnaire production, interviewing, data analysis and report preparation. Many companies use external research suppliers because: •The suppliers can be more objective and less subject to company policies and regulations than internal suppliers •Many external...