4.4 Market research Flashcards
Market research
Process of collecting, recording and analysing data about costumers, competitors and the market.
Why organizations carry out market research?
- to reduce risk associated with new product launches
- to predict future demand changes
- to explain patterns in sales of existing products and market trends
- to asses the most favoured designs, flavours, promotions and packages for a product
Primary research
Collection of first-hand data that is directly related to a firm’s needs.
Methods of primary research
- surveys
- interviews
- focus group
- observations
- test marketing - marketing a new product in a geographical region before a full-scale launch
Advantages of primary research
- up to date
- relevant to a particular business
- confidential - no other business has access to it
Disadvantages of primary research
- costly
- time-consuming
- doubts over accuracy and validity
Secondary research
Collection of data from secondary sources.
Methods of secondary research
- market analysis
- academic journals
- government publications
- media articles
Advantages of secondary research
- cheap
- obtainable quickly
- comparison from other sources
Disadvantages of secondary research
- can be out of date
- may not be entirely suitable for a particular business
- unknown accuracy of data collection
- may not be available for new product
Ethical considerations for market research
- permission of the people who will be studied
- not cause harm physical or emotional
- objectivity
- anonymity
- not taking advantage of easy to access groups of people
- responses should not be taken out of context
Qualitative research
Research into in-depth motivations behind consumer’s buying behaviour or opinions, not expressed in numbers.
Quantitative research
Research that leads to numerical results that can be presented and analysed.
Sample
Group of people talking part in a mark research survey selected to be representative of the target market overall.
Methods of sampling
- quota
- random
- stratified
- cluster
- snowballing
- convenience
Quota sampling
Gathering data from a group chosen out of a specific sub-group .
Random sampling
Every member of a target population has an equal chance of being selected.
Stratified sampling
Drawing a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each spectrum.
Cluster sampling
Using one or a number of specific groups to draw samples from and not selecting from the whole population.
Snowball sampling
Using existing members of a sample study group to recruit further participants through their acquaintances.
Convenience sampling
Drawing representative selection of people because of the ease of their volunteering or selecting people because of their ability or easy access.
Method of presentation results from the data collection:
- tables
- line graphs
- bar charts
- pie charts
- histograms
- pictograms
