Chapter 11-Market Research Flashcards
Market research
The process of gathering, analyzing and interpreting information about a market
Product oriented (business)
A business whose main focus of activity is on the product itself
Produces the product first the finds a market
Necessities-will definitely be bought
Old fashioned approach
Customers may wait before buying
Why do we do market research (4)
To:
Predict future demand changes
Explain patters in sales or existing products+market needs
Reduce risks associated with new product launch
Asses the most favoured présentation/flavor for the product
What is the role of marketing (7)
To answer:
Where?
Customers willing to buy?
What price?
What type of customer?
What features?
Competition?
What type of promotion?
What kinds of information does market research gather
Quantitative information-quantity of something
Qualitative information,-answers questions where opinion/judgement is necessary
What are the market research methods(2)
Primary/field research- the collection and collation of original data via direct contact with potential/existing customers
Secondary/desk research-uses information that has already been collected and is available for use by others
What are the advantages of primary research
The information is up to date+relevant
Planned and carried out by people using the data
Most effective when used to gather info ona specific problem
What are the limitations of primary research
Expensive
Not immediately available
What are the advantages of second research
Cheaper
Can be used to help asses size of market by finding out the size of the population and its age structure
Newspapers contain vital economic forecasts
Quick to obtain
What are the disadvantages of secondary research
Data may be out of date
Availible to all businesses
Data may not be relevant
Market oriented(business)
National/international businesses
Identifies needs and wants in future and presents, produces the right goods to make sales and profits. Better able to survive+be successful
More adaptable
Able to take advantage of new opportunities
Describe the process of primary research (6)
- Decide what the purpose of the research is
- Decide on the most suitable method of research
- Who/how big is the sample
- Carry out the research
- Analyze+collect the data
6.produce an easy to understand report
What are the methods of primary research(5)
Questionnaire
Online surveys
Focus groups
Samples
Interviews
What are the advantages of questionnaires (4)
They are detailed+qualitative
Can give the customers opinion
Can be online
Can be encouraged via voucher
What are the disadvantages of a questionnaire (3)
Answers may not be accurate
Time consuming
Costs money
What is a questionnaire
Set of questions to be answered as means of collecting data for market research
When/why would a business use an interview
What is an interview
To find out what specifically is wrong with their product and why it may not be selling
Process of asking individuals a series of questions face-to-face/over the phone
What are the advantages of interviews
Questions can be explained
Detailed information can be gathered
What are the disadvantages of interviews
Interviewer could influence data (interviewer bias)
Time consuming
Expensive
What are online surveys
A series of questions that require a target sample to answer them over the internet
What are the advantages of online surveys
Fastest
Cheapest
Easy for the participant
Data is quickly collected+presented (IT programs)
What are the disadvantages of online surveys
No one to explain open ended questions
Some people dont have internet access
Scope for fraud(dishonest people)
When/why would a business use a focus group
What is a focus group
When bringing out a new product
A group of people representative of the target market
What are the advantages of focus groups
They provide detailed info
Interaction helps business understand the reasons for people opinions
What are the disadvantages of focus groups (4)
Time consuming
Expensive-(agency)
Discussion could be biased(peer pressure)
Some people may dominate
What are samples
What are the types of samples
Group of people selected to respond to a market research exercise
Random sample-people selected at random
Quota sample-people selected on the basis of certain characteristics
Where does secondary research come from(2)
External research
Internal research
E.g’s of external sources (research)
Government statistics
Newspapers
Trade associations
Market research agencies
Online sources
E.g’s of internal sources (market research) (4)
Sales department records,pricing data,customer records,sales reports
Finance department
Opinions of distribution+public relations
Customer service department
How to design a questionnaire/important features
Who?
What?
Where?
12+short,clear,closed, non invasive questions in a logical order, answers should not be lead by the interviewer
What influences the carrying out of a questionnaire
Where
When
How many
Who carries out market research(2)
The business itself or a market research agency
What will a market research agency find out/do
Consumer spending habits
Provide their expert opinion on individual business and the competitors producs
What are the the factors that affect the accuracy of market data(8)
Phrasing of the questions
Who carried out the research
Bias
Age of the information
Wording of questions
How carefully the sample was drawn up
The sample selected
The size of the sample selected
What are the ways of presenting data from market research+what are they best used for
Tally-data i it original form
Charts-to show total figures/proportion for each piece of data in terms of the total number
Graphs-to show relationships between 2 sets of data
