3.5.3 Flashcards
what is market research?
the process of gathering, analysing and processing data relevant to marketing decisions
what is the role of market research?
to get information about the market n which a business operates and includes research into the product and the promotion
what is the purpose of market reasearch?
-demand
-market share
-competition
-target market
primary market research
involves gathering information for the first time
examples of primary market research
-telephone survey
-door-to-door
-focus groups
-internet research
-questionnaires
advantages of primary market research
-can conduct when it’s convenient to the business
-can see how people react and people may be more likely to tell the truth
-can get in depth responses
-cheap an quick
disadvantages of primary market research
-sometimes can not tell how people respond
-people may not answer their phones r be reluctant to give answers
-sometimes can be time consuming
-small groups of people may not reflect all your target customers
secondary market research
involves using data that already exists
examples of secondary market research
-information in a newspaper
-information published on a website
advantages of secondary market research
-can be gathered quickly
-great deal of information available
-provides information on large sections of the population
-helps a business as it’s unrealistic to expect a business to gather information on the whole of the economy
disadvantages of secondary market research
-existing data may not be exactly what a business wants
-data may be out of date
-markets change rapidly so you always need new information
what are the different types of data?
-quantitative data
-qualitative data
quantitative data
involves the use of numbers
qualititative
involves views and opinions
market mapping
diagram used to identify target customers and potential gaps in the market
benefits of surveys
you can tailor the questions
drawbacks of surveys
expensive and time consuming to create
benefits of observation
can see peoples behaviour
drawbacks of observation
depends on the time of day
market share
percentage of sales in a particular market for a specific business
market growth
percentage growth in the size of the market, measured over a specific period
market size
total volume of a given market
formula for value of sales
value of sales = number of units sold x price per unit
formula for market growth
market growth = change in market size / original market size x 100
