M2 explain the limitations of marketing research used to contribute to the development of a selected organisation’s marketing plans
Tesco 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 Tesco customer’s data, whereas external research includes questionnaire and surveys, experimental introduction of new products, interviews and focus groups and observation techniques. Tesco 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 Tesco 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 Tesco and what their preferences are, why they choose to shop at Tesco over other over other food retail stores and how would the customers be affected by changes in prices. Tesco also uses quantitative research, which includes Tesco’s sales, percentage of customers choosing the same answer in a quantitative questioner, this can later be analysed.
Market research is highly beneficial for business such as Tesco, however sometimes it can be a difficult process as there are a few research limitations that can affect Tesco’s marketing plans. Every marketing research has the potential to be wrong therefore Tesco 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 Tesco has to make sure that the cost of the research justifies its quality. Another limitation of marketing research is reliability, which shows how reliable...
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