Question

2. What do you consider the best sources for internal and external marketing information? Cite sources and discuss the advantages and disadvantages of each.

Answer 1

Internal Sources:

Those apply to information sources within the organisation. In some cases internal sources are necessary without which the researcher is unable to obtain desired results. Internal sources include financial information (various years' Operating Profit & Loss A/c and Balance Sheets), reports from salesmen, figures related to advertising spending, travel costs etc. Internal information is readily available and there is no financial burden involved in gathering the information.

External Sources:

The need for external marketing research sources exists for the study of marketing issues in depth. External sources are of enormous importance and useful in cases where extensive and rigorous research is required. Data from external sources can be split into two types (a) primary data (b) secondary data.

Primary Data

This refers to information from original sources gathered by the researcher. It's not a published data; the researcher himself has to collect it by tapping various tools. In general, the primary data is obtained for different purposes. The key sources from which to collect primary data are (a) Salesmen (b) Dealers; (c) Customers, etc. It is a very slow data gathering process and involves huge costs. But the findings from this data are original, so they appear to be more precise and reliable.

Salesmen are the most significant source of knowledge provided first-hand. Property owners appoint them for the sale and promotion of their products. They have a strong link with the customers knowing the consumer's tastes, expectations and purchasing habits. They can also know about the reaction of the dealer (especially of retailers) to the products of the firm by taking into account the product's quality, design , packaging and size etc. The marketing manager can guide salesmen to prepare periodic reports which contain the information they collect.

Consumers: This source of primary data collection is vitally important. Market representative samples can be selected for detailed examination regarding the price, quality and use of the drug. This data collection method is very reliable, as it establishes a direct connection between producer and consumer.

Secondary Data: Secondary data which has been compiled and released by other individuals or organizations already exists. This data is available at very low cost and it takes less time to gather it.

Periodically circulated business magazines and journals contain data that is very useful for marketing research; newspapers such as the Economic Times and Financial Express also provide data on industry patterns and market forecasts. Industrial Times, Industry, Economy, Market, Indian Finance , Business Asia, Business World and others are relevant trade journals.

The Central and State Govts have brought in countless publications that contain useful data for conducting marketing research. Government of India's Census Reports, Planning Commission Publications; periodicals such as Indian Review , various market newsletters.

Released Market Surveys: Another valuable tool for providing secondary data. Market surveys and reports are important tools for performing marketing research in researcher 's hands. These are published by corporations or by independent research organisations. Those refer to different product lines.

Advantages and Disadvantages are:

Fielding a study will take a toll on your wallet and watch, and bring it together effortlessly. Secondary data can therefore be more effective, thereby saving you time , money and effort. Rather than planning, performing, and then evaluating, a primary study to collect data and draw a conclusion, readily available secondary data may serve the same function.

Another highlight of secondary data is its usability. It doesn't take anything more than a couple of Google searches to find a reliable source with accurate facts, like a government agency or business leader. The government data can also be found free of charge in libraries and online. Consider outlets who have made public use of their work before doing your own work or as a supporting perspective.

Removing skilled / experienced workers from one position to a senior one would generate significant vacancy needs.
It has the power to create dissatisfaction with current employees.
You don't look for qualified candidates from a wider pool of potential talent
It can stifle innovation / diversity unless the work culture receives fresh thinking from outside sources

Source- Economic Times