chapter 11 Flashcards
define market research
Market research is the
process of gathering,
analysing and interpreting
information about a
market
the role of market research is to try to find out answers to these questions:
- Would customers be willing to buy my product?
- What price would they be prepared to pay?
- Where would they be most likely to buy my product?
- What feature of my product do customers most like or dislike
define product oriented
A product-orientated
business is one whose main
focus of activity is on the
product itself.
define market oriented
A market-orientated
business is one which
carries out market research
to find out consumer
wants before a product is
developed and produced
define marketing budget
A marketing budget is
a financial plan for the
marketing of a product or
product range for some
specified period of time. It
specifies how much money
is available to market the
product or range, so that the
Marketing department knows
how much it may spen
what can market research find out
- quantitative information, which answers questions about the quantity of
something - qualitative information, which answers questions where an opinion or
judgement is necessary - primary research, or field research
- secondary research, or desk research
define primary research
Primary research is the
collection and collation
of original data via direct
contact with potential or
existing customers
define secondary research
Secondary research
uses information that has
already been collected
and is available for use by
others.
what are the advantages of the primary research
- It is up to date and relevant to the business undertaking it.
- It is usually planned and carried out by the people who want to use the data;
it is first-hand. - its not available to other businesses
what are the possible limitations of primary research
- It can be expensive, for example, individually interviewing many people.
It is not available immediately
– it takes time to collect.
There are various types of primary research methods, including:
questionnaires, online surveys, interviews and focus groups
define a questionnaire
A questionnaire is a set of
questions to be answered
as a means of collecting
data for market research
define online surveys
Online surveys require the
target sample to answer a
series of questions over the
internet
define interviews
Interviews involve asking
individuals a series of
questions, often face-to-
face or over the phone
define focus group
A focus group is a
group of people who are
representative of the target
market
what is the process like when conducting primary research
- What is the purpose of the
market research? - Decide on the most suitable
method of research - Decide on the size of
sample needed and who
is going to be asked - Carry out the research
- Collate the data and
analyse the results - Produce a report of the
findings
what are the advantages of online surveys
- Fast, with quicker response times than other forms of survey.
- Cheaper than interviews or postal questionnaires.
- Easy to complete for the participant.
- Data collected can be quickly presented and analysed using IT tools
what are the disadvantages of questionnaires
- If questions are not well thought out, the answers to them will not be very
accurate. It may be very misleading for the business if it is thought that a product is liked by consumers, when in fact the respondents were only saying they thought the product was quite attractive but they would not actually buy it. - Carrying out questionnaires can take a lot of time and money.
- Collating and analysing the results is also time-consuming.
what are the advantages of questionnaires
- Detailed qualitative information can be gathered about the product or service.
- Customers’ opinions about the product or service can be obtained.
- They can be carried out online – see section below.
- To encourage people to fill in the questionnaire, vouchers can be offered or
participants entered into a ‘prize draw’.
what are the disadvantages of online surveys
- Absence of interviewer to explain open-ended questions or to ask follow-up
question to gain more detailed information. - Cannot reach potential respondents who do not have access to the internet.
-Scope for fraud – some people will just answer an online survey to gain any
incentives being offered and not give honest answers, or they complete the
survey carelessly
what are the advantages of interviews
- The interviewer is able to explain any questions that the interviewee does not
understand. - Detailed information can be gathered about what the interviewees like and
dislike about the product.
what are the disadvantages of interviews
- Whether consciously or unconsciously, the interviewer could lead the
interviewee into answering in a certain way, resulting in inaccurate results due
to interviewer bias. - Interviews are very time-consuming to carry out and, therefore, they are often
an expensive way of gathering information
what are the advantages of focus groups
- They provide detailed information about consumers’ tastes and preferences.
Interaction between members of the group can help the business understand
the reasons for people’s opinions. - Quicker and cheaper than individual interviews
what are the disadvantages of focus groups
- They can be time-consuming and expensive if conducted by a specialist market
research agency. - Discussion could be biased if some people on the panel are influenced by the
opinions of others. - Can be dominated by just a few people so the researcher will need to be
experienced to deal with this
