4.4 Market Research Flashcards
Define market research
process of collecting, analysing, & interpreting data about a market, including info about exiting & potential customers, competitors & market trends
6 reasons to conduct market research
1- understand customer needs
2- analyse competitors
3- shape the marketing mix
4- forecast demands
5- reduce risk
6- track trends
Define primary market research
collecting original, first-hand data directly from target customers / markets using methods (such as surveys, interviews and observations) to address specific research needs
Define and evaluate ‘surveys’
Primary market research method
= Set of structures questions posed to a sample of people to a the quantifiable data
✅ inexpensive for large sample sizes
✅ Data easy to compare / analyse
❌ Limited depth is only closed questions used
❌ Poorly worded questions = unreliable data
❌ Poor response rates are typical”
Define and evaluate ‘observations’
Primary market research method
= Monitoring & recording customer behaviour in real-life settings
✅ Quick + gathers large volume of data
✅ Real behaviour recorded (not just opinions)
❌ Doesn’t explain reason behind behaviour
❌ May need supporting research
❌ Ethical concern over consent
Define and evaluate ‘interviews’
Primary market research method
= In-depth, one-to-one discussions between researcher & respondent
✅ High response rates can be achieved
✅ In-depth understanding of attitudes
✅ Allows follow -up questions for clarity
❌ time consuming
❌ Interviewer bias can affect validity of results
❌ Costly if many people interviewed
Define and evaluate ‘test marketing’
Primary market research method
= Selling a product in a limited area before full launch
✅ can attract early attention from potential costumers
✅ Opinions can be gathered before full product launch
❌ producing + distributing = expensive
❌ Competitors may copy idea
❌ Results may not apply to larger markets
Define and evaluate ‘focus groups’
Primary market research
= Small groups led by. Moderator to discuss thoughts and perceptions
✅ Interaction sparks new viewpoints
✅ Detailed qualitative insights
❌ reluctance to share true opinions in a group
❌ Opinions may be influenced by dominant group members
Evaluating primary marketing research
✅ data up-to-date & relevant ❌ time-consuming
✅ directly focused on business needs ❌ costly (especially interviews / test marketing)
✅ can uncover attitudes & opinions ❌ bias possible in how data is interpreted
Role of social media in primary research
- allows businesses to gather feedback instantly
- Online surveys, polls, product reviews = faster + cheaper data
Define secondary market research
involves collecting & analysing existing data from various sources (eg. Gov reports, academic studies) rather than conducting new research
Sources of secondary research
Government reports - industry stats, employment, inflation
Academic institutions - research on markets, demographics
Market research firms - sell detailed data reports
Financial reports - public company reports
Trade journals / media - industry news, performance records
Internal data - past sales, stock levels, performance records
Evaluation secondary market research
✅ cheaper + quicker than primary
✅ useful for market overview / trend analysis
✅ often easily accessible
❌ may be outdated / irrelevant
❌ collected for different purposes
❌ no control over data quality
Define sampling
selecting a representative group from the population to gather data from
Define research population
the total group a business is interested in studying (target market)
Define and evaluate quota sampling
Sample chosen based on specific characteristics
(Eg, age, gender)
✅ faster than random
✅ Can reflect key groups
❌ not random
❌ Need to understand the population to be able to apply results to market as a whole
Define and evaluate ‘random sampling’
Every member has an equal chance of being seleceted
✅ Reduces bias
✅ Simple to conduct
❌ May not be representative
❌ Requires full population list
Define and evaluate convenience sampling
Uses people easiest to reach (eg, in a store / friends)
✅ Easy / fast
✅ Cheap
❌ Often biased
❌ Not reliable general trends
Heat does the decision of sampling methods (quota, random or convenience) depend on
Choice depends on:
Time available
Budget
Knowledge on the population
Required accuracy
Define and evaluate quantitative data
numerical data that can be measured & analyse statistically. To identify trends.
✅ Easy to analyse / compare
✅ Show trends
❌ may lack context or meaning
❌ can be quickly outdated
Define and evaluate qualitative data
non-numerical data that explores opinions, attitudes & motivations. Deeper insight into costumer behaviour. Typically gathered through methods like interviews.
✔️ Provide deeper insights
✔️ useful for understanding behaviour
❌ small sample size = lean reliable
❌ harder to analyse
State 6 limitations of market research a s a whole
Sampling bias
Time-consuming
Data overload
Misinterpretation
Fast-changing markets
Cost
