Limitations of Marketing Research Essay

Explain the limitations of merchandise hunt dropd to loan to the development of Nivea. No matter how sm entirely or large a commercialize depend project may be, any type of enquiry per planted poorly will non give relevant results. In fact, all research, no matter how well controlled, carries the potential to be wrong. There ar many reasons why research may non give adept results but a common line of work is deciding whether the research is authentically measuring what it claims to be measuring.There atomic number 18 3 types of limitations of market research. These argon Cost tellingness, reliability and validity of data collected. Reliability is chiefly restore with making sure the method of data gathering leads to consistent results. For display case Nivea need to coerce sure that in their market research that they were enquire the same questions asked of each person, was the sample big enough and reflective of the pile who will use/buy the harvest would the same results be obtained from a different set of people.Reliability estimates the degree to which a convergence is bars 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 compose 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 involve 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 n angiotensin converting enzymetheless if it measures reliably. Nivea unavoidably to consider when carrying come on their market research for a product is does the product measure what it claims to measure an d is it accurate, this reduces the chances of the line of reasoning making the wrong decision.If they so pass along to make the wrong decision this will affect one of its merchandising objectives which is to retain customers and gain newfangled ones, if the validity of their data is not correct then they will not reach this market objectives as customers opinions of the company will differ. Costs are also an important condition in market research, Nivea need to consider whether or not the product theyre promoting is salute 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 herd 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, merchandise is one of the few areas of a cypher that kitty be reigned in without hurting Nivea too much as they are a very successful business however, one of th eir marketing plans is to continue producing successful skin products and boost sales yearly. To do this they spend a penny a few cost-effective shipway that a company can market its products.Search Engine Optimization- Niveas customers are no long-lived waiting for adopt mail pieces to arrive before orderingthey 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 ordersa month. As web pages proliferate, increasingly more aggressive search engine optimization strategies are needed to remain visible to Niveas customers. Permission-based Email selling.Permission is the difference between legitimate email marketing and spam, turning email marketing into a exceedingly cost effective marketing scheme. The idea is simple and time sieveed Nivea deliver highly relevant, timely, and perso nalized email messages to their customers and prospects at a fraction of the cost of direct mail to avoid any cost limitations. 3. Public Relations- News releases, fresh papers, case studies, awards, and sponsorships of educational events are just a few of the relatively inexpensive ways Nivea keep their brand name in trend of other competitors.Although these methods have succeeded so far for them in the near upcoming they will have to alter their methods as well as their commence to the types of market research they decide to carry out, otherwise poor market research will increase the chances of Nivea making a wrong decision. D2) possess and justify three recommendations for improving the validity (the extent to which a test measures what it claims to measure) of the marketing research used to contribute to the development of your chosen brass instruments marketing plans.In this assignment I will be explaining how Nivea uses marketing research for its marketing planning by a pplying a Marketing Planning Process Model, a SWOT analysis on Nivea loose at least 3 reckons for each box) and their SMART objectives (stating what their business objectives are/ capacity be) Marketing planning is concerned with establishing objectives and goals, allocating resources to meet these and setting out a clear plan of action. It also involves setting out ways of evaluating performance against marketing calculates.Typically, the marketing planning member involves a legal tender audit, a SWOT analysis, setting SMART objectives, determining strategy and tactics, implementing strategy and tactics and evaluating effectiveness of marketing activity. A Marketing planning process model involves a PESTLE and SWOT As part of the marketing planning process, Nivea has to analyse its outdoor(a) environment. One useful way of analysing the external environment is by grouping external forces into six areas using a PESTLE analysis. PESTLE stands for policy-making, economic, fri endly, technological, legal and environmental influences.Political factors that affect a business are usually beyond the control of the formation. However, the business needs to anticipate changes and identify the action it needs to take to either make the most of an opportunity or mitigate a threat. For example, a political factor that Nivea need to consider is that during a turning point, any banks or pecuniary services fork uprs would have to consider the likely government scrutiny of any of their business decisions. Economic factors can affect the performance of a business.These relate to he national or international economy. A economic factor that can affect Nivea are the periods of prosperity that they go through. This can happen in three ways for example when high employment and income drives strike within the organisation. It can also happen in the form of recession when demand falls, leading to lower income and employment within their organisation. Furthermore, in the form of recovery, when demand, income and employment gradually rise within the business. Social factors relate to the set and beliefs of society.This includes the populations demographics (for example, size, gender, ethnicity, income, education, occupation). These social factors provide useful information for Nivea as it allows them to target their services at broad segments of the population, such as newspapers and magazines. expert developments can affect businesses in a range of ways. For example, the development of e-commerce benefited business such Amazon. co. uk. Due to the rise in e-commerce Nivea had to produce a e-commerce website which at long last took business away from traditional shops..Legal developments affect businesses in a range of ways. For example, if there was a change to the Data Protection solve it would affect Nivea and all other businesses that hold customer data. For example If a change in the act occurred then Nivea may not be able to expressly agre e to the use of personal data for denote or marketing purposes any more. Environmental factors can relate to the social, political and legal aspects affecting a business. For example, if Nivea decide to package their cream products in recyclable packaging.This may prove to be popular with consumers if there is a growing level of concern over waste. Similarly, the government may intrust pressure on businesses to increase the amount of recycling. SWOT analysis A useful approach to examining the relationship between a business and its marketing environment is by conducting a SWOT analysis. SWOT stands for Strengths Weaknesses Opportunities and Threats. Strengths and weaknesses are infixed to the business and can include issues such as the buildings, quality of the staff, IT systems and so on.The external element looks at the opportunities and threats present in the environment in which the organisation operates. Carrying out a SWOT analysis requires research into an organisations current and future position. The idea is to match an organisations strengths and weaknesses with the external forces (opportunities and threats). SWOT analysis draws together all the evidence from the several(a) analytical techniques used. It is a way of producing a summary, which then provides the basis for growth marketing objectives or aims and ultimately strategies or plans.Strengths refer to the internal features of Nivea, which provide a competitive advantage. An example could be a highly efficacious IT system which they use to design their products. The company also has a hard financial base, so it had the resources to put together a strong marketing campaign. Also, Nivea has staff with relevant skills researchers with the scientific skills to develop products that men want and marketing staff with the skills to help promote these products effectively. Weaknesses are internal aspects of the organisation, which may not stand comparison with competition or are not execut e effectively.An example might be major concerns and questions that Nivea have when launching a product For example Was the product range still relevant for the target audience? Did it have the right sales and distribution outlets? Was its market research up-to-date? Opportunities focus on events and developments external to an organisation. This might include new territories for a product or service. Opportunities that Nivea will want to undertake is to slack a new segment of a market. Also, NIVEA FOR MEN had seen an increase in the sales of male skincare products and it wants a greater share of this market, Nivea might might consider this.Furthermore, the company wants to take advantage of changing social attitudes such as men turn more open, or certainly less resistant, to facial skincare products. Threats are developments external to the organisations, which could damage boilers suit performance. These threats can originate from governmental policy, such as an increase in cor poration tax or new laws. Threats to Nivea are consumers who are becoming more knowledgeable and price conscious. They often expect sales promotions such as discounts and offers. Also, the risk of competitors entering the market.