Audu Ltd., a trading company, has just set up a committee to conduct a marketing research for the company. a. State five reasons that would have necessitate...

Answer Details

(a) Five reasons that would have necessitated the conduct of the marketing research

1. To identify customer needs and wants: The research helps Audu Ltd discover what buyers actually want so that the company can supply the right goods.
2. To understand competition: It reveals the strengths, weaknesses, prices and strategies of rival firms so the company can position itself well.
3. To assess market size and demand: Research measures how many potential buyers exist and how much they are willing to buy, guiding stock and sales targets.
4. To reduce business risk and support decision-making: Reliable data lowers the chance of costly mistakes when the company launches products or enters new markets.
5. To find new market opportunities: It uncovers gaps, new segments or locations where the company can expand profitably.

Other acceptable reasons: to test customer reaction to a new product, to fix appropriate prices, and to improve promotional and distribution methods.

(b) Five steps the committee would take in carrying out the assignment

1. Define the problem and research objectives: Clearly state what the company wants to find out and why.
2. Develop the research plan: Decide the sources of data, sampling method, research instruments (questionnaires, interviews) and budget.
3. Collect the data: Gather primary data from the field and secondary data from existing records and reports.
4. Analyse and interpret the data: Organise, tabulate and analyse the information to draw meaningful findings.
5. Present the report and make recommendations: Prepare and submit findings and suggested actions to management for decision-making.

Implementation and follow-up of the recommendations is also acceptable as a final step.