1.2.2 Market research Flashcards
What is the purpose of market research?
- identify gaps in the market or opportunities
- identify and understand customer needs
- understand how well the business is doing, such as customer’s opinions on products
- identify and understand competitors
- understand trends in the market, such as market growth
- reduce the risk associated with making business decisions
What are the 2 types of market research?
- Primary research
- Secondary research
What is primary research?
collecting information that did not exist before.
What is secondary research?
the process of gathering secondary data, which is information that already exists.
What are some examples of primary research?
- surveys
- focus groups
- observations
- social media
- questionnaires
- experiments
What are some examples of secondary research?
- sales data
- internet sites
- local newspaper
- telephone directories
- market reports
- government reports
What are the two categories of market research data?
- qualitative data
- quantitative data
What is qualitative data?
information about people’s opinions, judgements and attitudes
What is quantitative data?
data that can be expressed as numbers and statistically analysed
What are the benefits of primary research?
- more detailed insights-customer reviews
- keep private
- direct focus on research objectives
What are the benefits of secondary research?
- often free and easy to obtain
- good source of market insight
- quick to access and use
What are the drawbacks of primary research?
- time consuming and costly to obtain
- risk of survey bias
- sampling may not be represented
What are the drawbacks of secondary research?
- can quickly become out of date
- not tailored to business to needs
- specialist report often quite expensive
