1.1 Market Research Flashcards
What is the definition of market research?
Collection, analysis and collation of data which enables businesses to identify what customers want and need in order to inform their market strategy.
Why is market research important?
Help reduce risk
Identify a gap in the market
Helps inform plans
What is Primary Research?
This involves collecting data first hand information that didn’t exist before the business collected it. Aka Field Research
Methods of Primary Research:
Surveys
Observations
Focus Groups
Interviews
Secondary Research definition:
The use of information that has already been collected for a different purpose. Aka desk research
Methods of Secondary Research:
Internal: Prior annual reports, prior internal data i.e. Sales
External: Online, Competition Annual reports, government, new, books.
Quantitative Research
Usually larger samples, the numerical data, statistics.
Qualitative Research
The opinions and reasons that explain the quantitative research
What is sampling?
A small group of people who must represent a proportion of a total market. The larger the sample the more reliable the research.
What does the sampling reliability depend on?
The size of the sample
How representative it is
Method of sampling
The size of the sample will depend on:
Market Size
Budget
Time
Staff available
Limitation of market Research:
Expensive
May not always be useful or reliable
Depends on the staffs skills to analyse and interpret the data
May be out of date
Use of ICT in market research.
Company websites can be used to record customer behavior and manage feedback like reviews
Social media can be used to monitor interactions and ask questions
Databases store customer information, sales and other useful information
Other applications can be used to present this data in an easy to understand format e.g. excel
