Understanding markets and customers

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  • Created by: finleyyy
  • Created on: 28-01-20 15:30

Market research- systematic and objective collection, analysis and evaluation of information that is intended to assist the marketing process. It is undertaken for:

  • Descriptive reasons
  • Explanatory reasons
  • Predictive reasons
  • Exploratory reasons

Primary market research- collection of information first hand fo r the specific purpose of the initial user. Examples are- experiments, observations, focus groups and surveys.

Benefits-

  • Direct link to research as gained for it
  • Reliable

Limitations-

  • Can be time consuming
  • Can be expensive

Secondary research- using information that other people have gathered. Examples are- government publications, newspapers, magazines, company reports, competitors, market research organisations.

Benefits-

  • Less time consuming
  • Can be less expensive

Limitations-

  • Lacks reliability
  • Might not link directly to your research

Qualitative research- collection of information based on subjective factors such as opinions and reason. Words.

Benefits-

  • Gives insight
  • Highlight issues they're unaware of
  • Explains thinking behind actions

Limitations- 

  • Expensive
  • Difficult to analyse and generalise

Quantitative research- collection of information based on numbers.

Benefits-

  • Easy to generalise and summarise
  • Easy to compare
  • Able to identify trends

Limitations-

  • Shows what but not why
  • May mislead, lacks reliability and validity if sample is too small

Market Mapping- analyses markets by looking at specific features that distiguish different products or firms. Shows the positions in relation to market and can identify…

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