Understanding Customer Needs - Businesses want to provide products that customers will want to buy. This is called ‘market orientation’. They develop new products that will suit the needs of their customers, therefore ensuring sales and more revenue. They will develop a product depending on who is most likely to buy it.
Market Research - Companies find out what their customers want through market research. Market research answers questions such as: Who is the target market?, Where are they?, What do they want?, What are our competitors doing? and How can we do things better? Market research can be done in 2 ways: Primary Research and Secondary Research.
Types of Research - Primary Research -“Field Research”, Information that is newly created, Can be collected by research firms or by the business itself, Up to date, Can be expensive to collect, Takes longer to collect. This can be through: Observations, Interviews (telephone or group interviews), Consumer panels, Questionnaires.
Secondary Research - “Desk Research”, Involves using information that has already been collected, It is cheap and readily available, Information might be out of date or might not be relevant, Can be obtained from: Government statistics, Market Research companies, Newspapers, The Internet, Company’s past data.
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