4.4 Market research Flashcards
Market research
Process of collecting, recording and analysing data about customers, competitors and the market
Why do organisations carry out market research?
To reduce the risks associated with new product launches
To predict future demand changes
To explain patterns in sales of existing products and market trends
To assess the most favoured designs, flavours, styles, promotions and packages for a product
What can market research find out?
Whether consumers will buy a product
Reaction to different price levels
Reaction to alternative forms of promotion
Reaction to new types of packaging
Reaction to different methods of distribution
Primary research
The collection of first hand data that are directly related to a firm’s needs
Secondary research
Collection of data from second hand sources
Qualitative research
Research into the in depth motivations behind consumer buying behaviour or opinions
Quantitative research
Research that leads to numerical results that can be presented and analysed
Survey
Detailed study of a market or geographical area to gather data on attitudes, impressions, opinions and satisfaction leaves of products or businesses, by asking a section of the population
Open questions
Those that invite a wide ranging or imaginative response
Closed questions
Questions to which a limited number of preset answers is offered
Types of primary research methods
Surveys
Interviews
Focus groups
Observations
Test marketing
Test marketing
Marketing a new product in a geographical region before a full scale launch
Focus groups
A group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging
Advantages of primary research
Up to date
More relevant/direct
Confidential and unique
Objective
Disadvantages of primary research
Time consuming
Costly
Questionable validity
