Limitations of Marketing Research
Introduction to Marketing
Final Exam
M2: Explain the limitations of marketing research used to contribute to the development of a selected organisation’s marketing plan.
There are 3 types of limitations of market research. These are; * Cost effectiveness of data collection * Reliability of data collected * validity of data collected
Costly: Marketing research is a costly affair. It needs a lot of money to conduct various market research activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys, prepare reports, etc. It is not a viable choice for small businesses. It is suitable only to large companies who can afford its cost.
Reliability: The value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary.
Validity: Validity asks whether the research measured what it intended to. Validity implies reliability: a valid measure must be reliable. But reliability does not necessarily imply validity: a reliable measure need not be valid. Validity is usually considered more important than reliability, because if an instrument does not accurately measure what it is supposed to, there is no reason to use it even if it measures reliably.
Other Limitations: * Can't predict consumer behavior * No accurate results * Non-availability of technical staff * Resistance of marketing managers
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Try to understand the above points and try to write how these limitations affect the marketing plans of the selected organization. -------------------------------------------------
Final Exam
M2: Explain the limitations of marketing research used to contribute to the development of a selected organisation’s marketing plan.
There are 3 types of limitations of market research. These are; * Cost effectiveness of data collection * Reliability of data collected * validity of data collected
Costly: Marketing research is a costly affair. It needs a lot of money to conduct various market research activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys, prepare reports, etc. It is not a viable choice for small businesses. It is suitable only to large companies who can afford its cost.
Reliability: The value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary.
Validity: Validity asks whether the research measured what it intended to. Validity implies reliability: a valid measure must be reliable. But reliability does not necessarily imply validity: a reliable measure need not be valid. Validity is usually considered more important than reliability, because if an instrument does not accurately measure what it is supposed to, there is no reason to use it even if it measures reliably.
Other Limitations: * Can't predict consumer behavior * No accurate results * Non-availability of technical staff * Resistance of marketing managers
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Try to understand the above points and try to write how these limitations affect the marketing plans of the selected organization. -------------------------------------------------