CH18 - Market Research Flashcards
What is the purpose of Market research ?
Aimed at finding the characteristics of customers and what products they want and why
What dose Market Research measure ?
New products
Different price levels
Alternat forms of promoting
New packaging
Online distribution
How dose Market research link to NPD ?
(Customers needs and tastes)
Undertake primary & secondary research into consumer needs and the business competition
How dose Market research link to NPD ?
(Product idea and packaging)
Testing product and packaging with consumer groups
How dose Market research link to NPD ?
(Brand positioning and advertising)
Pre-testing the product image and advertisements
(control groups)
What is the link between MR and Consumer characteristics ?
A business needs to establish who the consumer of their products are likely to be
Being aware of this allows the product to be targeted (target market) based upon consumer factors (age, income etc)
MR and pattern of sales in market trends
MR needs to be conducted on both existing products as well as new
Ex :
Sales at Gap fell they then conducted MR and data was then used to promote and reverse the trend of sales
How dose MR help with future demand changes ?
A business need to try forecast changes in demand level so that it doesn’t produce less or more of product than needed.
How MR helps with promotion styles and packaging ?
Consumer testing of products and promotions is constantly being undertaken by some businesses
Different versions of a product being advertised should be tested before final decision
Consumer responses can be include into final product
What is Quantitative Data? (Basic)
Numbers & quantities
What is Qualitative data? (Basic)
Broader information, writing etc
What is Primary Research?
First hand collection of data by an organisation for its own needs
Find out people’s opinions
How can you conduct Primary Research ?
Questionnaire, interviews , consumer panels , observation , experiments (Test Marketing)
What are the advantages of Primary Research ?
Helps to find out about completely new markets for which no other data exists
Helps business get specific information for new products/services (Competitors may not have)
Business can target a specific market to obtain information
What are the disadvantages of Primary Research ?
Expensive
Time consuming
Success depends on quality of research
Based on a sample of people may not represent the market segment as a whole
What do you get from a questionnaire ?
Included detailed, open questions to give qualitative and quantitative data
What can be done in an Interview?
Allows for personal contact with the participants, follow-up questions can be asked
The downside to observations ?
If people are aware they are being observed they could behave differently
What happens in a Focus groups ?
Encourage debate between consumers about a product or advertisement. Discussion is observed and recorded
What is Secondary research ?
Originally collected by another, often for a different purpose
Lower in cost and quicker to find
Can be used to asses the main features of a market
Advantages of Secondary Research ?
Can provide information about the population, economy and market
Can help identify key areas of market information Primary Research needs to focus on
Many sources can be accessed on the internet
Limited finance may prove this to be the only option
Disadvantages of Secondary Research ?
Difficult to find specific information
Data may not be accurate
Information may be outdated
Not all data is available to every business and could be expensive to obtain and has to be purchased from a MR agency
Data is so vast that its not easy to analyse or make useful for an individual business
Sources of Secondary Data
Government
Local Government (governing body)
Trade organisations
Market Research agencies
Internal company records
Company records and accounts
