UNIT 3 Introduction to Marketing (Y/502/5411)

Sr. No.
1.
2.

Content
P2. Describe the limitations and constraints of marketing?
P3. Describe how a selected organisation uses marketing

Page no.
03
05

research to contribute to the development of its marketing

3.
4.

plans?
P4. Use marketing research for marketing planning?
References

07
09

P2. Describe the limitations and constraints of marketing?

Answer: Marketing is a form of mass communication which acts as link between the
seller and buyer. Marketing is actually a process by which information from
manufacturer or a seller of a product or service is passed to the consumer.
Unarguably it modifies or stimulates the behaviour of the buyer to buy a specific
product or to avail a specific service. Marketing can be done in several forms to
arouse the interest of consumer. However, like manufacturing apart from having a
numerous pros marketing too faces limitations and constraints. Major limitations and
constraints of marketing are given below for ready reference:
1. Not a precise tool:
Marketing is a not a very precise tool which can be used to predict the sales
figure. It gives a very complex picture about the consumer behaviour.
Moreover, turning a marketing breakthrough into actual sales figure is pretty
difficult. Therefore, any profit forecasting based on marketing only can put a
business in soup.
2. Failure pertaining to untrained staff:
All companies invest its resources like time and money to conceptualise
marketing strategy. However, inexperienced or untrained marketing persons
do more harm than benefit as they fail to convince prospective customers.
Even marketing with trained staff does not guarantee increased sales and
profits. Therefore, failure despite of all efforts is the biggest limitation of
marketing.
3. Huge expenditure:
Pertaining to cut throat competition companies now days are forced to keep
their product or service price within a specific limit, as any unusual hike can
put them out of the competition and business. In contrast to this marketing
involves expenditure as for any advertisement in magazines, newspapers,
endorsements or digital marketing a company has to pay. This ultimately
increases the cost of product thereby diminishing the profits. Therefore,
biggest constraint with marketing is to keep the budget within specific limits.
4. Untimely calls backfires:
Adopting marketing techniques like telemarketing has its own limitations.
Unnecessary marketing phone call in between an important meeting or task
many times irritates consumers and thus backfires damaging the reputation of
brand and company.
2 | Page

5. Time consuming process:

Now days markets across the globe are quite volatile and are interlinked. Any
turbulence is one section of market affects other and hence business scenario
changes quite swiftly. On the other hand marketing is often a time consuming
process. Therefore, swiftly changing business scenario reduces effectiveness
of marketing.
6. Limited reach:
One biggest constraint of marketing is limited reach. Irrespective of the
marketing method like newspaper, magazine, traditional media or digital
media followed by a company it cannot touch all nick and corners. Pertaining
to this reason companies often apply multiple methods to reach their
customers. But this strategy requires huge budget which is not possible for
small business houses.

P3. Describe how a selected organisation uses marketing research to

contribute to the development of its marketing plans?

3 | Page

Answer: Market research is a careful study in a systematic manner in order to collect

data and information about current market scenario. Based on such gathered data
and information companies conceptualise their future marketing and sales plan.
Detailed market research done before introducing any new products or before
making any changes in current business strategy helps in making them more
competitive. Along with this market research cast spotlight on market size, market
need and rivals and hence curtail risks in the business. In fact, it also helps to make
out new openings or opportunities in the business. It also ensures positive decision
making process in a corporate house. Therefore, all organisations should consider it
as a continuous process which needs to be done after regular intervals to gain edge
over rivals.
Market research mainly delivers two types of data. First one is qualitative and
second one is quantitative. Both these datas prove vital while chalking out
promotional or advertising plans for products. In fact, now days many big corporate
houses are using such qualitative and quantitative data collected to conceptualise
innovative and unique marketing plans in order to allure large customer base. The
huge data collected while performing such researches help companies to develop a
better understanding of prevailing market scenario, wide customer needs and
consumer behaviour. Thus, in fast paced business scenario it gives thorough
information about changing trends in packaging, promotions, endorsements,
advertisements, brand names and many more related aspects to plan effectual
marketing. Based on such data marketing consultants of companies create new
ideas and ultimately fresh tailor made products to better match customer demands.
In addition, insights collected by market research helps to make effective decisions
for example it aids companies to decide whether to launch its new product or not.
Also, based on facts and figures analysis future turnover or sales forecasting for new
product or brand can be easily assessed. Moreover, even established companies
having renowned products or brands can use such analysis to design marketing
plans to make journey towards success. Apt marketing strategies hence can be
modified as per the information received. Apart from this, interest of prospective
investors and business partners can also be engrossed by demonstrating effective
marketing plan conceptualised on the basis of positive findings of analysis.
Furthermore, organisations can utilize marketing research as an essential ingredient
4 | Page

for SWOT (Strength, Weakness, Opportunities and Threats) analysis of marketing

plan in order to understand rivals. Greatest advantage with this method is that
forecasts done with this method are based on actual facts and figures and not on
speculations only.
All in all, considering todays cut throat business landscape companies should
always consider market research as a usual intended component of their marketing
strategies.

P4. Use marketing research for marketing planning?

Answer: Data and information collected about target customer to conceptualise plans
for promotions and advertisements is known as market research. It is indeed a
5 | Page

significant organised effort done by a corporate house to keep them floating in

todays cut throat competitive business scenario. All this has made it an important
aspect of business strategy for all small to big corporate houses. It gives both
qualitative and quantitative data and hence helps to well understand both consumer
needs as well as competition. Besides all this market research also casts spotlight
on the supply and demand chain of any market thereby helping companies to plan
accordingly as per swiftly changing business. Apart from this some of the significant
points are given below explaining uses of marketing research for marketing planning:
1. Establishes direct communication for superior business plans:
To collect qualitative as well as quantitative data interactions with customers is
done during research process. This certainly aids in establishing a direct
communication with current and prospective customers. Hence, research
carried in such a manner supports to plan promotional and advertisement
strategies for target customers.
2. Gives information about opportunities for marketing planning:
Market planning is all about anticipating and acting before the swiftly changing
business scenario. Therefore, market analysis carried about prevailing market
conditions give insights about opportunities available. Based on such pre data
about buyers interest, companies can alter or make necessary modifications
in their marketing plan.
3. Helps to avoids risks before planning:
Greatest worry of any business house is risks involved in launching new
products or services. Even well established companies often fail to make
mark with new products or services pertaining to volatile conditions. Hence,
facts and figures of market research can be applied for pre market planning to
avoid any perilous situations likely to come later on. Potential problems in
launching new products and services can also be identified during such
research exercises.
4. Helps to evaluate company reputation:
Companies can use research statistics to evaluate their prevailing reputation
or status in business. Such an exercise if done meticulously gives a fair idea
to a company about its current position in market. Based on such evaluations
companies can plan their future product launches, new services, change in
strategies, packaging, discounts, endorsements etc.
5. Helps to give edge over rivals during planning strategies:

6 | Page

Companies often perform evaluations studies to create a unique segment for

their specific product or service. Off course promotion and advertising
techniques for such market segments differs a lot. Hence, with support of
market research efficient strategies specific product or service can be framed
to surpass the rivals.
6. Gives information about market size:
Size of the market unarguably rules business strategy of any corporate house.
However to make impact with new products or services a company has to
realistically target specific customers. In such situations market research
proves handy thereby giving thorough information to do planning accordingly
for target customers only.
In the end, by giving a clear sense about a particular consumer segment market
research ensures success in developing a well organized marketing plan.

References:
Pyle, Spencer, Lesley, (2010), How to Do Market Research-The Basics
Taylor, Ivana, (2011), How to Write a Market Research Plan
Tim, (2015), describe how a selected organisation uses marketing research to
contribute to the development of its marketing plans
Sagal, Tom, (2014), describe the limitations and constraints of marketing
Trooper, storm, (2011), introducing the basics of marketing
Biswas, Karisma, (2014), describe how a selected organisation uses marketing
resea
Chilaka, Michael, (2014), Describe how marketing techniques are used to market
products in two organisations
Togbey, Romain, (2010), Introduction to marketing
Mentink, Marja, (2012), Introduction to marketing

7 | Page