Market Research

15.1 The value of market research

Research shows that the single biggest cause of failure if due to failure to understand the market. It is reasonable to suggest that this alone shows why MR has the potential to be valuable to every business.

15.2 Methods of secondary research

Internet:

• The internet can provide invaluable information, through online providers of MR information will want to charge for the serivce.

Government-produced data:

• These provide data on population trends, and forecasts.

15.3 Methods of primary research

Retailer research: the people closest to a market are those who serve customers directly - the retailers. They are likely to know the up and coming brands, the degree of brand loyalty and the importance of price and packaging.

Observation: when starting up a service business in which location is an all-important factor, it is invaluable to measure the rate of footflow past your potential site compared with that of your rivals.

For a large company, primary research will be used extensively in new product development.

15.4 Qualitative research 

This is in-depth research into the motivations behind the attitudes and buying habits of consumers. Qualitative research is usually conducted by psychologists, who learn to interpret the way people say things, as well as what they say:

The main form of qualitative research is group discussion. These are free-ranging discussions led by psychologists among groups of six to eight consumers. The group leader will have a list of topics that need discussion, but will be free to follow up any point made by a group member. Among the advantages of group discussion is the fact that they:

• may reveal a problem or opportunity the company had not anticipated
• reveal…