2.4: Market research

Question 1

Define the term market research and explain its importance

Answer 1

Market research is recording and analyzing data about customers, competitors and the market.

importance:
- reduce risk of new products launch
- to predict future demand changes
- to identify the market segment

Question 2

Distinguish between primary and secondary market research explaining the costs and benefits of each type

Answer 2

Primary market research: field research, data that doesn`t exist
- first hand data related to the company needs

Secondary market research: Desk research
- second hand sources information collected for another purpose
ex: government statistics

Question 3

Describe methods of both primary and secondary research

Answer 3

Primary research: Field research, data collected from scratch
ex:
- surveys
- interviews

Secondary research: Data that already existed
ex:
- internal company records
- government publications
- internet