2.2a Market Research Bags Flashcards
Why do businesses carry out MARKET RESEARCH
To identify …
1) overall market size
2) customers needs and to help understand them
3) gaps in the market
How does market research IMPROVE a business?
1) provides useful information to help businesses make reformed decisions
2) reduces risks as businesses know exactly what products to sell
3) spots gaps in the market so they can develop a new unique product
What is PRIMARY RESEARCH
Getting information directly from customers
FORMS of primary research
1) questionnaires
2) observation
What are the ADVANTAGES of primary research
1) finding out new unique information
2) getting opinions directly from the customer
3) up to date, relevant, specific information
What are the DISADVANTAGES of primary research
1) time consuming
2) large samples are expensive
What is SECONDARY research
Looking at other people’s work (reports, newspapers, websites) to retrieve information
What are the ADVANTAGES of secondary research
1) cheaper than primary research
2) data is easily found and instantly available
What are the DISADVANTAGES of secondary research
1) not always relevant
2) not specific to your business
3) could be biased therefore false
4) often out of date
Why would a business use SOCIAL MEDIA for market research
Businesses can see what sort of things are popular and in trend which helps them identify customer needs
What is the power of social media?
It is a way to connect around the world
Can social media be replaced
No, it is an innovative and unique way to transfer information
How important is market research?
It allows the user to identify the marker and carry out knowledge with this market
Alternatives to market research
Employ foreign people with useful knowledge of the market you are studying
Risks
Not knowing how the market works is almost certain failure
