1.2.2 - Market Research Flashcards
Spotting a Business Opportunity
1
Q
What are the purposes of market research?
A
- To identify and understand customer needs
- To identify gaps in the market
- To reduce risk
- To inform business decisions
2
Q
What are the methods of market research?
A
- Primary/field research - data is collected first-hand for a specific research purpose
- Secondary/desk research - data that already exists that has been collected for a different purpose is compiled
3
Q
Examples of primary research
A
- Observation - good for retailers but can be expensive and time consuming
- Questionnaire/Survey - low cost but can have low reply rates
- Focus group - provides tastes and preferences but can be costly and time consuming
4
Q
Examples of secondary research
A
- Government reports - detailed reports on the economy and different industry sectors
- Internet - eg. competitor websites and customer reviews
- Market reports - created by independant organisations
5
Q
Advantages & disadvantages of primary research
A
- Specific to needs
- Up to date
- Can be low cost
- Lack of expertise
- Time consuming
- Results may be limited
6
Q
Advantages & disadvantages of secondary research
A
- Already exists
- May be compiled by experts
- Quick to access
- Can be out of date
- Often expensive
- Not specific
7
Q
What is the difference between qualitative and quantitative data
A
Quantitative data - Can be expressed numerically
Qualitative data - Involves attitudes and opinions
8
Q
Advantages & disadvantages of qualitative data
A
- Useful for new product development
- Focues on customer needs in depth and detail
- Expensive to collect and analyse
- Relatively small samples and subjectivity causes data to be unrepresentative
9
Q
Advantages & disadvantages of quantitative data
A
- Data is easy to analyse and compare
- Numerical data provides insight into behaviour of trends
- Focuses on data and trends rather than the reasons and context behind them
10
Q
Methods of market research on social media
A
- Poles
- Skippable surveys
- Pop-up adds
- Evaluation of hashtags, popular searches and posts
11
Q
Advantages & disadvantages of social media market research
A
- Cheap, but not free
- Quick and easy to set up
- Provides insight into market trends
- Unreliable if particpiants are lazy
- Unrepresentative if applied to the wrong demographic
12
Q
How to make data reliable
A
- Larger sample sizes
- Thorough analysis
