Answer to Question #27239 in Other Management for Jairus Aina
An internal marketing department is exposed to employee beliefs about company offerings from the time products are conceptualized. This exposure makes it difficult to break away from the groupthink mentality and conduct research from a neutral framework. Relying on internal staff may cause survey question bias and inadequate customer satisfaction research.
External marketing research firms may have access to proprietary software, research pools and expert analysis not available within the company. These firms employ doctorate-level experts for statistical analysis, survey preparation and research analysis in addition to maintaining a large roster of customer research pools. Limited resources and employee knowledge gaps may hamper the effectiveness and thoroughness of in-house research efforts.
Disadvantage: Geographic Limitations
Centralized marketing departments have difficulties conducting research in all markets where their products may be placed. External marketing firms have contacts in multiple geographic locations that can localize and conduct effective marketing research targeted at current or potential customers.
Working with research firms requires somewhat rigid guidelines and research requirements. Companies using an internal marketing research department obtain built-in agility to modify research during the course of the investigation. Internal marketing teams can also move at the pace set by business needs.
Hiring external firms for marketing research may be more expensive than using corporate employees. Costs, expenses and resources can be tightly monitored and controlled when an in-house staff conducts investigations.
Internal employees tap product, development and support staff for in-depth product knowledge, questions and advice. This resource advantage allows internal marketing teams to customize and maximize research efforts. For example, marketing staff could discuss product feature options with engineering staff to help craft a survey to establish customer product preferences for future models.
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