1.2.2 Market Research Flashcards
Purposes of Market Research
-Find gaps in the market
-Identify competitors
-Understand trends
-Reduce risk and inform decisions
-Get feedback
-Identify and understand customer needs
Quantitative
Information about people’s opinions, judgements and attitudes
Qualitative
Data that can be expressed as numbers and statistically analysed
Primary Research Methods
-Surveys
-Focus Groups
-Observations
-Experiments
-Questionnaires
-Social Media
Benefits of Primary Research
-More accurate
-Up to date
-Can be tailored to the business
-Specific to needs
-Effective for qualitative data
-Direct customer contact
Negatives of Primary Research
-Time consuming
-Sample size- if too small may not be reliable
-Lack of expertise
-Results may be limited
Secondary Research Methods
-Internet Sites
-Local Newspapers
-Government Reports
-Market Reports
-Telephone Directories
-Sales Data
Benefits of Secondary Research
-Already exists
-Less time consuming
-Cheaper
-Effective for quantitative data
-May be compiled by experts
Negatives of Secondary Research
-Can be out of date
-Often expensive
-Not specific
Qualitative Data Benefits
-Useful for new product develop
-Understand customer wants and needs for decision-making
-helps business to listen, highlighting issues
-Effective to test elements of marketing mix
Qualitative Data Negatives
-Expensive to collect and analyse
-Responses are very subjective
-Relatively small sample
-Dependant on skills of interview
Quantitative Data Benefits
-Relatively easy to analyse
-Provides insight into trends
-Can be compared
Quantitative Data Negatives
-Focuses on data rather than explaining why things happen
-Doesn’t explain reasons behind numerical trends
-May lack reliability if sample size and method aren’t valid
