Topic > Market Research - 852

Now I will explain the limitations of market research. Limitations are restrictions that the company faces; these can influence market research and market planning. Primary research compared to secondary research is expensive as the preparation and conduct of the research is high. Research takes additional time and requires a plan to be done correctly. It takes longer to search from start to finish to get the results they need. This contributes to the development of market plan forecasts of expected results, since the results that the company hopes to achieve over time may be delayed. For example, Tesco may hope to collect and research data over a 2 month period, if a delay would affect this. Surveys are expensive and the risk of questionnaires and interviews is likely to be biased. Search results are also usable only if they are comparable. Retrospective data is existing data from previous market research, if this is the case Tesco's research will not be reliable. This contributes negatively to the market plan as biased questions mean they will influence marketing assumptions as the data collected must be real. Retrospective data affects the market plan as Tesco cannot adequately analyze the current situation, it finds itself because it uses data it already has. Secondary research is highly dependent on Tesco. The data may be out of date, which offers little value for Tesco, especially in changing markets. Furthermore, the research is not tailored to the needs of researchers, because it is not presented in a form that satisfies them. Reports are purchased so comparisons can be made; they are expensive and time consuming if they are not helpful in the results. The research obtained,... halfway through the document... will provide Tesco with the research it needs. It also develops market hypotheses as sentiments can be conveyed through surveys. Focus groups: Validity can be improved if Tesco chooses the right people for its focus groups, for example, if they sell perfumes for girls they will only invite potential target groups. Furthermore, a large sample size can represent many people which will improve the reliability of the research. Staying on topic but making the discussion interesting will provide better feedback. The result can be distorted, so you need to ask reliable questions to get the best results. In developing the market plan, they will achieve the forecasts of expected results. They will also develop the marketing strategy of Tesco as the products can be criticized and they will help in making critical decisions which will make the customers happy and this is the marketing strategy of Tesco.