4.4 Flashcards
What is market reserch
Market research is the process of using different marketing activities designed to discover the opinions, beliefs and preferences of potential an existing customers. Basically, It helps to identify and anticipate the wants and needs of customers.
what is the overarchig reason business use market reaserch
Businesses use market research information to make decisions.
what are the smaller reasons for market reaserch
Up to date information- particularly important in industries that are constantly changing (i.e. fashion, technology) so they can use the first-mover advantage.
Improve marketing strategies- done by assessing how a firm implements the activities required by its marketing mix in specific market segments.
Assess customer reactionsto a new product – it can be done by testing the market using a small group of costumers. This can present possible losses if the product proves unsuccessful, reducing the risk of product failure.
Understanding rivals- to provide current or latest information regarding the activity in the market.
Helps predict the future – or at least what is likely to happen in the future. Understanding the possible trends that will help the business react accordingly (i.e. an upcoming recession might help the business spend less)
what are the two market reaserch methods?
primary market research and secondary market research.
what is primary reaserch
primary market research – also known as field research, it involves the collection of first-hand (new) information from the market. Its is often used to gather data and information from costumers to identify their buying patterns and anticipate changes in market trends.
what is secondary reaserch
Secondary market research – also know as desk research, refers to the collection of second-hand data and information that already exists meaning that the data and information have previously been gathered by others.
what are four examples of primary reaserch?
Surveys, Interviews, Focus Groups and Observation
what is a survey?
These are questionnaires sent out to a particular target audience to unable to get useful information. They are the most common method of primary research and there are several types, such as:
Self completed surveys – done by the business to get information from their own costumers
Personal surveys – done face-to-face, helps to clarify some of the questions
Email or online – takes advantage of technology, its quite impersonal but practical
Telephone – calling customers or random people to get the information
what are the benifits of a survey?
A large amount of data can be collected in a relatively short period of time
If well designed they can be easy used by the responders
They can be used to collect information in different issues
what are the cons of a survey?
The answers provided by the responders might not be an accurate reflection of what they feel. Affecting the results of the research.
Surveys that are poorly designed or administrated can jeopardize the well-intended research.
Since large samples are normally used, it can prove costly and time-consuming to create and administer.
Even though random samples are selected, the answers could be biased distorting the results.
what is a interview?
Interviews – is a one-to-one discussion between an interviewer and an interviewee where to investigate their personal circumstances, opinions, beliefs or attitudes in detail. Generally carried out in person, but telephone or different technology options (i.e. zoom, teams, google meet) can also be used.
The information from the interview is then analysed to identify the views that respondents share and identifying the differences as well.
what are the pros of a interview?
Since questions can be more specific, the gathered information can be more detailed.
Since there is one-to-one attention, more responses can be achieved. Information or questions can be clarified in the interview.
what are the cons of an interview?
The whole process can be very time-consuming: setting up the interview, carrying it out, analysing responses, gather feedback and report.
Some interviews might affect the interviewee’s answers since they could be biased.
what are focus groups?
a small group of people brought together to discuss a specific idea. The group is typically made up of participants who share a similar customer profile (i.e. teenage girls who like make up; teenage boys who like computer games, vegetarians or vegans to try new products). The participants answer questions designed by the marketer researchers discussing freely about their opinions, reactions or ideas. In some cases they can also taste the product.
when are focus groups often used?
These groups can provide important information to the firm to help the business with new product, strategies etc. Often used when a product is going to be launched (or re-launched)
what are the advantages of a focus group?
timeefficiiet (everyone is in the same place).
The results can be used either to measure the reaction of customers to the new product or to help the firm’s strategies.
They help identify key information about the product that the business might have not stated or the competitors didn’t share.
The get the insight of what the customers are thinking about the competition compared to the firm (i.e. Apple vs. Samsung)
what are the disadvantes of foucus groups?
If the group is too small the results won’t reflect what the entire market is thinking. Specially, if the firms is looking at whole segment.
Some member of the groups might not express their real opinion mainly guided by the “peer effect”.
Focus groups are more costly to carry out, since every participant need to be remunerated.
what is observation?
this method involves watching how people behave and respond in different situations. Observations can be carried out using surveillance filming, photographic evidence or in person (by using a checklist).
