M2: Explain the limitations of marketing research used to contribute to the development of Nivea.
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, 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.
There are 3 types of limitations of market research. These are Cost effectiveness, reliability and validity of data collected. Reliability is chiefly concerned with making sure the method of data gathering leads to consistent results. For example; Nivea need to make sure that in their market research that they were asking the same questions asked of each person, was the sample big enough and reflective of the people who will use/buy the product would the same results be obtained from a different set of people. Reliability estimates the degree to which a product is measures in contrast to validity which involves the degree of accuracy. In research, Nivea will want to use measurement tools that are both reliable and valid. They will want to create questions that offer consistent responses when asked multiple times as this shows reliability.
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. Nivea needs to consider when carrying out their market research for a product is does the product measure what it claims to measure and is it accurate, this reduces the chances of the business making the wrong decision. If they so happen to make the wrong decision this will affect one of its marketing objectives which is to retain customers and gain new ones, if the validity of their data is not correct then they will not reach this marketing objectives as customers opinions of the company will differ.
Costs are also an important consideration in market research, Nivea need to consider whether or not the product they're promoting is cost effective. Their market research has to weigh up the cost of undertaking the research against the potential benefits that may result. You could spend a lot of time and effort in trying to solve a problem through market research, only to find that the solution may not be worth implementing. Also, marketing is one of the few areas of a budget that can be reigned in without hurting Nivea too much as they are a very successful business however, one of their marketing plans is to continue producing successful skin products and boost sales yearly. To do this they have a few cost-effective ways that a company can market its products.
Search Engine Optimization- Nivea's customers are no longer waiting for direct mail pieces to arrive before ordering–they are finding products when they want them through Internet searches. In fact, almost 90% of new visitors to a web site originate from major search engines. And clearly, a top ranking on Google can translate into hundreds or thousands of visitors– and orders–a month. As web pages proliferate, increasingly more aggressive search engine optimization strategies are needed to remain visible to Nivea's customers.
Permission-based Email Marketing. Permission is the difference between legitimate email marketing and spam, turning email marketing into a highly cost effective marketing strategy. The idea is simple and time tested: Nivea deliver highly relevant, timely, and personalized email messages to their customers and prospects at a fraction of the cost of direct mail to avoid any cost limitations....
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