5.4 - Market Research Practices

Question 1

Market Research Purposes

Answer 1

This is after finding out about your market (customers) through the process of finding information on them through practices. (Strategies / Procedures)

1. Determine Your Information Needs
   You need to establish the information that the business wants to know. If it was a cafe, it might be the type of cakes and coffee that the customers like the most.
2. Collecting Data from Primary Sources an Secondary Sources
   You can look at collecting this directly from customers or you can use other techniques like observation or employ agency.
3. Analyse and Interpret Data
   You colect data and you format it to provide evidence about the question that you have determined. You then look at your original objective about your market and act on it.

Question 2

Primary - Survey

Answer 2

• This is when the business will make direct contact with the public and ask them a range of question.
• This can take the form of asking a person on the street or a business, asking a client to fill in a response. A survey can also be by phone or through email.
• The benefits of a survey is that the data is obtained directly and you can select who you wish to survey, while a disadvantage is that not all people are prepared to undertake the survey which can bias the results.

Question 3

Primary - Observation

Answer 3

• This is when a business collects data by looking at what is taking place. The information can be obtained through a camera. A problem with this is that it can be seen as not ethical by customers which could reduce sales.
• The advantages include that more data can be obtained and it is less likely to have a negative reaction from the general public.

Question 4

Experimental Method

Answer 4

This is when the business looks at changing a factor and then seeing how the control group changes their response.

Question 5

Secondary Data

Answer 5

• This is data that is collected from sources that don’t directly link to the business which are collecting it.
• This can be from inside the business by looking at what is selling well and what is being delivered and from outside the business which could be from government collected data.

Question 6

Analysis and Interpretation

Answer 6

• This is when the business looks at the data that has been collected and formats it to provide information that could include a change in data over a period of time.
• The business needs to look at what it means and then determine if the information needed to market the product or service