MARKET research DEFINITION
The collection, collation and analysis of data relating to the marketing and consumption of goods and services.
WHAT A START UP NEEDS TO KNOW!!
How big is the market/sales/volume?
Growth of market..?
Competitors and shares..?
How is the market segmented..?
Who is their target audience/market?
Types of market research....
PRIMARY- Collected first hand, tailored specific needs of business, specific purpose.
SECONDARY- Already exists, collected previously
- Involves the manipulation of secondary, which has been gathered for some internal purpose.
(Internal-already exists within the company)
External: Trade associations and publication/competitors/newspapers/libraries
Gov. statistics, census of population. Annual abstract.
Internal- sales figures, reports direct from customer contact, feedback, annual reports and accounts-stock movements, focus groups...
Primary research- more expensive..
field...observation (mystery shoppers)
Experimentation- test marketing
- Product trials
BENEFITS AND PROBLEMS WITH MARKET RESEARCH...
(+) reduced risk, customer, personal fulfil.. Provides link with consumer, public relations, size of markets...
***A sample is a group of people that is intended to represent the overall target population...
Random: Gives each member of the population an equal chance to be chosen.
Quota: Involves the population being segmented into groups of specific characteristics. The research focuses on sample size.
Stratified sample: Interviewing those with key characteristics required for the sample.