2.2 market research
- Created by: hanfa
- Created on: 18-12-20 16:40
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- 2.2
- what is market research about?
- the 4P's: price, product, place, promotion( sometimes packaging) as it helps decide marketing strategy.
- market research aims to find out info about the TM like their age, economic status, culture, location, their needs.
- helps a business become successful and avoid mistakes by finding out what their customers want, the price willing to be paid, design that'll be attractive to customers, how many, where and how to sell etc.
- market research is significant because it is used to inform business decisions, it helps to understand the significance of TM to the business and it helps decision makers choose a marketing strategy that best fits the needs of their target market.
- primary research methods: collecting new data directly for people in the target market.
- trialling: a product sold for a short while and if it sells well it goes into full production. its a good way to see if the people like the product and it reduces risk involved in producing large quantities. however, the people sold to must be representative of the whole market otherwise the finding wont help the business,
- interview: when an individual or group is asked questions and record their answers, it is easy to target TM and the questions can be explained, however, its expensive and not everyone likes being interviewed.
- focus group: a small group of people asked to use a product or think about an advertisement and to give their opinion, the feedback is then use to re-design. the people chosen will be representative of possible customer, but it will only be a small group and can be costly to carry out.
- questionnaire: set of questions sent out to selected people in the post or asked online. its easy t target customers and cheap to carry out. however people may not understand the questions and answers might not be completely honest if they aren't interested in the product.
- secondary research methods: using information already been created.
- data from websites: info about other companies can be found including what htye sell and charge. its cheap to collect and readily available, it given the business an estimation of what they should charge etc. but businesses need to carefully interpret the data.
- internal data: collected by business throughout like past sales and profits as well as customer feedback. its cheap to collect, readily available and specific to the business. but data is historical, what has happened now what will happen.
- data from newspapers and magazines: articles often describes peoples interests and current fashions. its up to date , cheap, is a good source of ideas. its general however, and isn't specific to the business.
- uk census data: the national census finds out info every 10 years from every household. it comes from all of people all around the country and its already analysed. it hasn't been collected for any certain business and it will need careful interpretation.
- to decide whether to choose secondary or primary:
- how much the business can afford to spend
- what information is required
- location of customers
- how quickly the information is needed
- qualitative vs. quantitative
- qualitative data is usually primary to understand from customers personally their opinions, but is limited amounts.
- quantitative is either secondary or primary and its easy to analyse and gathered from many, but limits what they can say.
- what is market research about?
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