Understanding markets and customers

Marketing research

- Involves gathering and analysing data relevant to the marketing process

Primary and secondary marketing research

Primary - Involves research that is first hand - it has been collected for the first time
Secondary - This type of research uses existing data (e.g. reading newspapers or studying information produced by companies/ the goverment

Quantitative and Qualitative data

Quantitative - provides data in a numerical form - it is often gathered through surveys and its value is that it can show what is happening in a market in a measurable format
Qualitative - Data that is not in a numerical form and is often descriptive - it can describe why things have happened

Sampling

All of the people that a manager may want to interview are known as the 'target population' (those relevant to the market research being undertaken) - However, in most cases it is not possible to interview or survey all of the target population
As a result, manager may choose a 'sample' (a group of people or items selected to represent the target population)
The value of the sampling
- Provides an insight into a specific market
- Saves money because the whole of the target population does not have to be considered
- It is quicker than trying to test or talk to the whole of the target population
The risks of sampling
- Heavily reliant on the sample
- If research is undertaken badly the sample may not in fact be representative
- May make incorrect predications due to the method of conducting research
The value of sampling therefore depends on;
- How the people or items are selected
- How the sampling is conducted
- The sampling size

Market mapping

- Analyses marketing conditions to identify the position of one product or…

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