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Benefits of market research:
Knowing customer's needs ­ helping to avoid wasting money on products that will not sell
Estimating likely demand ­ so that the firm avoids making too few or too many products
Helping the entrepreneur to understand if the market is big enough to make the business a
Finding out about competitors location, products and prices- so that these three important
areas will benefit from this information
Reasons for research inaccuracy
Secondary data Primary research
Information may be outdated as it may have Failure to ask enough people may mean that the
been collected some time ago. This makes it less information collected does not represent the
accurate than up to date information. views of typical customers.
Information may not be exactly what is needed. Asking too many people of a particular age
This was because it was originally collected for group or income level may give results that fail
another purpose. to represent the whole market.
Some sources of secondary information may not Poorly designed questionnaires may use
be reliable. E.g. company websites may present suggestive or leading questions which may
biased information. encourage people to give a particular answer to
certain questions.
Key features of a questionnaire
Most questions should be closed questions. This allows the company to compile the results
and analyse the results more easily.
Should be as short as possible. This will encourage people to take part in the research and it
will make the results much easier to analyse.
Before constructing the questionnaire research objectives should be set making clear exactly
what the firm wants to discover from the results of the questionnaire.
Usually the first questions establish the type of person being spoken to e.g. gender, age
which allows researchers to stop the questionnaire if the respondent does not fit the sample
that the firm wants to find out about.
Other questions are often used to try to find out the respondents buying habits and attitudes
to the type of product or service being investigated.
Advantages of internet research:
Free of charge

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Allow a quick overview of the market
Some sources may be biased e.g.…read more

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Advantages of a focus group:
In depth information about customer attitudes and motives behind purchasing decisions.…read more

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The company does not control the content so those reporting on the event may provide
negative publicity e.g.…read more

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Advantages of banners and popups on other websites:
Can target people by interest and hobby
May be ignored seen as a nuisance or even blocked popups.
Why place is important?
The right channel will balance the need to cut costs and therefore the final price by using the
most direct route possible with the need to get the product into as many different places as
possible so customers can access it when and where they want.…read more

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Internet research: using information that has already been published on the internet to gather
information about the market for a firm's products or services.
Telephone survey: a series of set questions delivered over the telephone to consumers as a method
of primary research.
Supplier feedback: gathering information from companies that supply products or services on their
forecasts for what is likely to happen in the market in the future.…read more


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