Market Research

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  • Created by: Sara
  • Created on: 21-12-09 11:56

Market Research

There are two main types of market research. These are Primary research (field research) and secondary research (desk research).

Primary research is data or information that does not already exist.

Primary Research

First hand information

Can be highly focussed and relevant

Care needs to be taken with the approach and methodology to ensure accuracy

Types of question – closed – limited information gained; open – useful information but difficult to analyse

Collected by the entrepreneur

Examples

· Customer questionnaires

· Focus group

· Direct mail surveys

· Web-based surveys

· Customer interviews

Disadvantages

Expensive to collect, analyse and evaluate

Difficult to carry out accurately

It can be inaccurate therefore the business might make inappropriate decisions.

Entrepreneurs often lack the skills and time to carry out Primary research.

Secondary research is data that has already been found by someone and published. That has not been collected specifically for the purposes of the entrepreneur.

Internal sources

Company Accounts

Internal Reports and Analysis

Stock Analysis

Retail data - loyalty cards, till data, etc.

External sources

Government Statistics (ONS)

EU - Euro Stat

Trade publications

Commercial Data - Gallup

Household Expenditure Survey

Magazine surveys

Other firms’ research

Research documents – publications, journals, etc.

Internet - many web sites offer information and much government published data can be accessed for free through their web sites.

Sampling Methods

Random Samples – equal chance of anyone being picked

May select those not in the target group – indiscriminate

Sample sizes may need to be large to be representative

Can be very expensive

One in which each potential member of a group has an equal chance of being in the sample.

Stratified or

Comments

davidsalter

This revision note covers all aspects of market research including the advantages, disadvantages, examples and sampling methods. It allows you to test your knowledge.

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