5.3 The purpose + methods of market research Flashcards
What does the market research give information about?
Demand, Market share, Competition, Target market
What is market research?
process of gathering, analysing and processing data relevant to marketing decisions
What is a market segment?
A group of buyers with similar needs within an overall market
what is quantitive market research for?
designed to discover numerical information relating to a market such as the volume of sales over time
What is qualitative market research for?
uncovers the reasons behind the buying decisions of people and organisations
what are the 2 types of data used in market research?
qualitive and quantitive
How can value of sales be calculated?
value of sales = number of units sold x price per unit
how can market growth be calculated?
change in market size/ original market size x 100
how can market share be calculated?
sales of the product / total market sales x 100
what are the uses of market research?
identify opportunities in markets
weigh up different possible actions
assess the effectiveness of actions that have been taken
what is primary market research?
uses data gathered for the first time (either by the business or others directly to the market)
what is secondary market research?
data that has been gathered already
what is a focus group?
a small group of people selected to give their views on a particular business issue like brand image
what are the advantages of secondary market research?
gathered quickly and cheaply
can provide information on large scale sections of the population
what are the disadvantages of secondary market research?
Existing data might not be exactly what the business wants
Existing data might be out of date
