Chapter #4 - Market Research Flashcards
Mraket Research
The process of collecting, collating and analysing data about customers, competitors, or a market.
What can accurate market research help with?
- To find out customer needs + wants.
- To find out about customer needs + wants.
- Reducing the risk of introducing or selling new products.
- Planning marketing communications.
- Making desicions such as which idea or option to select or reject.
- Evaluatinfg success.
Primary market research (field research)
Collecting new information or data for a specific purpose.
What are 5 different examples of primary market research?
- Surveys and questionnairs
- Interviews
- Consumer pnels and focus groups
- Observations
- Test marketing
What is the description of observations
(of market research)
Watching/recording what people do/buy.
What are the disadvantages of test marketing
Expensive and takes time. it could also alert competitors of what you are doing/planning. This could limit competitive advantage of what your planning.
Secondary research
The use of information that already exists and was originally collected for different purpose.
What is the description of test marketing?
(as a form of market research)
Introducing a new product to a small number of potential customers to see their reaction to it.
What are the advantages of test marketing?
Entrepreneur can see if the prduct could appeal to wider market or if it needs to be changed or not even released into the market.
What are the disadvantages of observations?
(as a method of market research)
You cannot ask any questions about why they are behaving as they are. This means information gathered can be limited/misleading.
What are the advantages of observations?
(as a method of market research)
This can provide insight into what people do. It is also a cheap method as all someone has to do is watch what happens for an agreed period of time. No questions have to be prepared.
What is the description of consumer panels and focuse groups?
Gathering a selection of people who have similar charectaristics to target market to give their opinions on the product or service.
What are the advantages of consumer panels and focus groups?
Allows for highly detailed information from the selected group of customers.
What are the disadvantages of consumer panels and focuse groups?
The sample size is very small and other members of the grouo could be influenced by what others say or do. Focus groups are also expensive and time consuming to arrange.
What is the description of surveys?
(as a method of market research)
Asking people a list of set question. This can be done face to face, on line, or sent out by post.
What are the advantages of surveys?
Relitively cheap way to gain informaton since a large number of people can be asked the same simple questions. More people can be asked which reduces risk of bias .
What are the disadvantages of surveys?
- Questions must be carefully designed, as poorly made/worded questions can lead to misdirection and therefore poor decisions being made.
- This could result in higher costs, wasted recources and lost rvenue.
- It can also take long to collect all questionnairs and people might not complete surveys.
- ** risk of bias.**
What is the description of interviews?
Interviewers ask individuals a number of questions.
What are the advantages of interviews?
This method can provide with more detailed answers, as there is time to inquire on answers to questions. Interviews often provide higher respnse rates than surveys.
