1.2.2 Market research Flashcards
Definition: Market research
Market research is where businesses try to find out what
customers want/need, and also look at what competitors
are doing/offering.
It helps them to make business decisions.
Market research data can be collected in a variety of ways
including; questionnaire, experiment, observation, focus
group and interview.
Market research: To identify and
understand customers
A business should use
market research to help
them identify what a
customer need is and how
to meet and exceed that
need
The market research should
help to understand the
potential customers
Market research: To identify gaps in
the market
A business will carry out
marketing research to
spot a gap in the market
or a potential business
opportunity
Markets are dynamic and
trends change all the time
so the more up-to-date
the research is – the
quicker the business can
be to market with the
product
Market research: To reduce risk and
make informed business decisions
Market research helps to reduce
the amount a financial risk has
It gives the business owner solid
information on which to base a
decision
Definition: Primary research
Primary research is the gathering of new
information that is specific to the business
This is an expensive method of research but
will produce good quality information that the
business can use for decision making
It is not always suitable, so there are also
secondary research methods
What is a primary research?
Primary research is original data
gathered by the researcher
The information does not yet
exist, so it could not be found
on the Internet, a website, in a
magazine or anywhere else
This is brand new information
which the researcher will find
out about the business
4 main primary research
methods
1) Survey
2) Questionnaire
3) Focus group
4) Observation
survey
Primary research may also
include a survey of
customers who use the
business
A business can gather
quantitative (numbers) and
qualitative data (opinions)
in this method
It can also be used to
measure customer
satisfaction, giving the
business a clear idea of
where to improve
Focus group
A focus group brings a group
of potential customers
together to talk about the
proposed new product or
service idea.
Observation
A business may choose
to gather data from
observation of buyer
behaviour
Definition: Secondary research(desk research)
In secondary research the information already
exists in some format, someone has already
collected the data
3 main secondary research
methods
1) Internet
2) Market reports
3) Government reports
Quantitative (Quantity data)
Involves gathering data
and measuring
responses
Data displayed in
charts, graphs, or as
statistics and
percentages
Qualitative (quality information)
Seeks to gather and
explore feelings and
thoughts about a product
from consumers
