2.2 Market Research Flashcards
Define market research…
How a bussiness will collect information on weather or not their products will be bought
Purpose of marker research
Find target market and improve chanced of product selling
2 Types of market research
Primary marker research ( field research)
Secondary research
What’s primary research ?
Any type of research collected for the first time or is new information
Examples of primary research …
Questionares
Focus groups
Interviews
Advantages of Questionares…
Target your audience
Less time consuming
Lots of quesitonares can be distributed
Cheaper then others
Disadvantages of Questionares..
Question doesn’t get understood
Not fully completed
What’s an interview
Face to face meeting to gain information
What’s a focus group ?
A group of customers selected to represent be target market, they get brought together to discuss a product or service
Advantages of a focus group..
usually very accurate
Qualitive responses are more in depth compared to quantities surveys
Disadvantages of focus groups …
Small in size which limits quality of responses
Selection of people is time consuming and costly
What’s a trial?
A product or service is sold for a short amount of time as a test to see if consumers like it
Advantages of a trial…
A business can establish weather the idea wld have a positive impact on sales which will reduce chance of failure. Save money in the long term
Trials disadvantages …
Costly to set up in short term
May not fully reflect the target market.
What is secondary research ?
Data that already exists
Examples of secondary data..
Websites
Internal data
Census data
Newspapers and magazines
What are websites ?
Disadvantage of them …
Most companies put information about themselves and their products on the internet.
Competitors can use this as secondary data
What is census data ?
Data collected by the government every 10 years, questioning the entire population , income and so forth.
What is internal data .?
Past sales and figures, profits and comments from customers
What are newspapers and magazines?
Information found in newspapers can be used to help develop ideas on a product competitors are offering.
