Market Research

Control Objectives for Market Research

(a) To ensure that the organisation remains aware of the needs of their target
customers;
(b) To ensure that all product development marketing and sales activities are
based upon accurate determinations of the prevailing economic market and
customer trends;
(c) To ensure that market research activities are accuratel! costed justified
and authorised;
(d) To ensure that the organisation is kept informed about competitor
products and activities;
(e) To ensure that promotional and advertising activities are appropriatel!
targeted as a means to ensure value for mone! and effectiveness;
(f) To identif! potential new markets or opportunities to successfull!
differentiate products and services;
(g) To ensure that the organisation"s products and services match the market
e#pectation in respect of $ualit! price and performance;
(h) To ensure that customer complaints and product returns are appropriatel!
anal!sed as the basis for taking corrective action; and
(i) To maintain a database of market intelligence relevant to the operating
sector to support effective decision making%
Risk & Control 'ssues for Market Research
1 Key Issues
1.1 How does management maintain an accurate and up-to-date
awareness of market trends, customer needs and competitor activities as the
basis for their own panning and decision making!
1." #hat steps are taken to ensure that customer re$uirements are
identified and effectivey addressed(
1.% How does management correate market research findings with
product deveopment, promotiona and saes activities!
1.& 're a market research activities accuratey costed, and (ustified as
being worthwhie and authorised!
1.) How can management be assured that promotiona activities and
advertising are appropriatey targeted and offer vaue for money!
1.* How does management identify potentia new markets or
opportunities to differentiate their products!
1.+ #hat measures ensure that products continue to match the re$uired
performance, $uaity and price criteria!
1., 're new and prototype products-services reaisticay market tested
prior to fu aunch, and how are the resuts utiised!
1.. How can management be assured that market research data is
accurate and reiabe!
" /etaied Issues
)%* +re suitabl! skilled and e#perienced marketing staff emplo!ed to conduct
or direct market research activities(
)%) ,ow does management ensure that e#ternal market research agencies and
consultants are reliable $ualified and cost effective(
)%- 's the performance of market research activities reviewed and assessed for
effectiveness (over a suitable period)(
)%. +re macro economic events general sector trends and other market
influences taken into account b! management and how can the! be sure that their
interpretation of such factors is accurate(
)%/ 0oes management conduct a comprehensive competitor anal!sis as the
basis for determining the appropriate tactical responses(
)%1 +re customer complaints and comments recorded assessed and used to
define the necessar! corrective action(
)%2 ,ow is the accurac! of data input from other s!stems (i%e% sales
performance financial reporting etc%) confirmed(
)%3 ,ow is the accurac! of data output to other s!stems (i%e% planning
function promotion and advertising) confirmed(