2, Market research Flashcards
market research
involves gathering, presenting and analysing information about the marketing and consumption of goods and services.
why do businesses do market research
Businesses spend money on market research because it helps to reduce the risk of failure.
Purpose of market research
- identify and anticipate needs and wants
- quantify likely demand
- gain insight into customer behaviour
primary research
involves collecting primary data, data that did not exist before the research began.
sample
a group of people who are thought to be representative of the total market
sample
a group of people who are thought to be representative of the total market
methods of primary research
- questionnaires/surveys
- focus groups or consumer panels
- face to face/telephone interviews
- product trials/test marketing
elements of a questionnaires
- have a balance of open and close questions
- contain clear and simple questions
- not contain leading questions
- not be too long
questionnaires
a list of written questions to record the views and opinions of respondents
focus groups or consumer panels
where a number of customers are invited to attend a discussion organised by market researchers.
interviews
questions may be explained if a respondent is confused and may collect more detailed information.
product trial/test marketing
where consumers are encouraged to examine, use or test a product before it is launched fully into the market.
advantages of primary research
- data can be collected that directly applies to the issue being researched.
- the business that initially collects the data will be the only organisation with access to it. –> can be a marketing advantage over rivals
- secondary data may be unavailable in a certain area
advantages of primary research
- data can be collected that directly applies to the issue being researched.
- the business that initially collects the data will be the only organisation with access to it. –> can be a marketing advantage over rivals
- secondary data may be unavailable in a certain area
disadvantages of primary research
- it can be expensive to collect and may take longer than other research
- the sample taken may not represent the views of all the population
- if the research method is flawed then the findings will also be flawed.
secondary research
involves the collection of secondary data, data that already exists.
methods of secondary data
websites social media newspaper/magazines television/radio reports
advantages of using social media as a form of secondary research
broad reach
personal
ability to target
free or low cost
advantages of secondary research
It is relatively easy, quick and cheap to collect, especially if the sources that exist are known.
Several sources may be used. This allows the data to be checked and verified.
historical data may be used which can show a trend over time
it can be used before carrying out primary research which can help to establish the most useful questions to be asked in questionnaires.
disadvantages of secondary research
data is not always in a form that the business wants as it has been collected for another purpose
data may be out of data and not relevant
researchers ,must be aware of bias
there may have been problem with the research
Qualitative research
involves the collection of data about attitudes, beliefs and intentions.
quantitative data
involves the collection of data that can be measured
target population
includes all those people whose views a business wants to explore
sampling method
when a business collects a sample of people in the population, who are representatives of the target customer group.
random sampling
Gives each member of a group an equal chance of being chosen, the sample is selected at random
quota sampling
respondents are selected in a non-random manner in the same proportion as they exist in the whole population.
stratified sampling
where the sample is divided into segments or strata based on previous knowledge about how the population is divided up. A random group is then chosen from each of these groups, making sure that there were the same proportions of the sample in each category as in the population as a whole.
stratified sampling
where the sample is divided into segments or strata based on previous knowledge about how the population is divided up. A random group is then chosen from each of these groups, making sure that there were the same proportions of the sample in each category as in the population as a whole.
