5.3 The Purpose And Methods Of Market Research Flashcards
What is Market Research
The process of gathering, analysing and processing data relevant to marketing decisions
What is a Target market?
The group of consumers to which a business intends to sell a particular product
What does Market research gather information on?
- Level of demand for goods and services within the market
- Requirements for its customers
- Actions of competitors
- Target Market
What are the types of data used in Market Research?
Qualitative market research and Quantitative market research
What is Qualitative market research?
An approach to market research designed to uncover the attitudes and opinions of customers that affect their decisions to purchase goods and services
What is Quantitative Market research?
The collection of numerical marketing information that can be analysed statistically and stated in the form of numbers
What are the different ways of collecting information in Market research?
- Primary market research (Own surveys or observations)
- Secondary market research (Already existing data)
What are methods of primary research?
- Questionnaires
- Surveys
- Interviews
- Focus groups
What are methods of secondary research?
- Internet research
- Focus groups
What are the benefits of primary research?
- More accurate data
- Specific to your needs
What are the drawbacks of primary research?
- Expensive
What are the benefits of secondary research?
- Inexpensive
What are the drawbacks of secondary research?
- Data may be outdated
- Data may not be accurate to your needs
What can numerical data show in a business?
Numerical data (collected through quantitative market research) can be used to look at a market’s size, growth and competitors’ market share, and can help inform key business decisions
How do you calculate Market Size?
Market Size = number of products sold x average price per product
