Market Research
- Created by: Supernova
- Created on: 25-04-20 07:31
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- Market Research
- Market Research is collection, presentation and analysis of information relating to the marketing and consumption of goods and services. There are two main types of research. They are Primary (field research) and Secondary research (desk research)
- It is necessary to gain information, data and knowledge about the market because it helps:
- Estimate the number of buyers
- Decide which features to put in the product
- Determine price
- Choose a venue to sell at
- Estimate competition
- Decide promotion strategies
- Identify the customer needs
- Stay competitive in the future
- To reduce risk
- It is necessary to gain information, data and knowledge about the market because it helps:
- Primary Research
- Primary research is data or information that does not already exist
- Always first hand
- Expensive
- Carried out for a specific purpose
- Accurate
- All types of surveys
- Types of Primary research
- 1. Questionnaires
- A set of questions to be answered as a means of collecting data - a balance of open and closed questions
- Contains clear and simple questions, avoiding the use of jargon, poor grammar and bad grammar
- Provides detailed qualitative information
- Customers opinion is ibtained
- However, answers maybe misleading if the questions aren''t attempted well.
- Requires a lot of time and money
- However, answers maybe misleading if the questions aren''t attempted well.
- Customers opinion is ibtained
- Provides detailed qualitative information
- Contains clear and simple questions, avoiding the use of jargon, poor grammar and bad grammar
- Questionnaires can be used for interviews such as: Personal interviews, telephone interviews, postal surveys and online surveys
- Interviews provide further explanation of questions
- detailed information can be gathered
- They can be carried out by one person or done in groups
- Interviewer bias may occur
- Requires a lot of time and money
- It is less expensive to ask a group of people but the answers of each person may be affected by the others
- Requires a lot of time and money
- Interviewer bias may occur
- They can be carried out by one person or done in groups
- detailed information can be gathered
- Interviews provide further explanation of questions
- A set of questions to be answered as a means of collecting data - a balance of open and closed questions
- 2.Focus groups or consumer panels
- Groups of customers agree to provide information about a specific product or general spending patterns over a period of time
- Often used to test new products
- Provide detailed information about opinions
- However, it is time consuming, expensive, and biased
- Provide detailed information about opinions
- Often used to test new products
- Groups of customers agree to provide information about a specific product or general spending patterns over a period of time
- 3. Observation
- This is when market researches gather information on customer behavior through; Recording, watching and audits and this method is mostly used in retail outlets
- Inexpensive method
- However, only gives basic figures
- and does not provide reasoning behind decisions.
- However, only gives basic figures
- Inexpensive method
- This is when market researches gather information on customer behavior through; Recording, watching and audits and this method is mostly used in retail outlets
- 4. Test Marketing
- Samples of products are given out to customers
- Easy to set up
- Can gather customers' first reactions to products
- Representative samples of customers must be asked
- However, People may not give their true opinion to not cause any offense
- Other potential customers may not be asked
- However, People may not give their true opinion to not cause any offense
- Representative samples of customers must be asked
- Can gather customers' first reactions to products
- Easy to set up
- Samples of products are given out to customers
- 1. Questionnaires
- Primary research is data or information that does not already exist
- Secondary Research
- Collection of data that already exists is known as secondary research.
- Internal Sources
- It is readily available and cheap to obtain. Examples include;
- Firms own records of sales figures such as: Stock data, Budgets, Reports, Previous research data
- It is readily available and cheap to obtain. Examples include;
- External Sources
- Obtained from outside the country, sources are varied, more general and have limitations. Examples include;
- Government statistics and publications
- Newspapers
- Business websites
- Media
- commercial publications
- Market research agencies' report
- Easier to obtain data
- Less time consuming
- Covers total size of the market
- Not always too accurate as data may be out of date
- Obtained from outside the country, sources are varied, more general and have limitations. Examples include;
- Internal Sources
- Collection of data that already exists is known as secondary research.
- Market Research is collection, presentation and analysis of information relating to the marketing and consumption of goods and services. There are two main types of research. They are Primary (field research) and Secondary research (desk research)
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