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.
What are the disadvanteges of interviews?
Interviews take a long time to complete. this means fewer people are asked and therefor, the sample size is smaller than surveys. They also have a risk of interviewer bias.
What type of market research sould you conduct to identify what customers need or want?
Surveys
What type of market research sould you conduct to find out a good place to sell.
Interviews with customers or previous enterprises.
What type of market research sould you conduct to identify buying habits?
Observations
What type of market research sould you conduct to measure customer satisfaction?
Focus groups to find out customers views.
What are examples of secondary research?
- Existing data from your sales record
- Newspaper and internet articles
- Trade organisation and journals
- Government statistics
- Company and market research reports
- Market research agenies
What is the description of existing data from you sales record
Gathering info. from internal records such as past years sales.
What are the advantages of gathering market research from existing data from you sales record?
- Helps indicate what products are popular.
- Easy to obatin
- Info. is free
What are the diadvantages of gathering market research from existing data from you sales record?
- Data may be incomplete
- There may be no info. available
What are the functions of gathering market research from newspaper and internet articles?
Can provide a wealth of general information on market or trading conditions and trends in the market.
What are the functions of gathering market research from trade organizations and journals?
These can provide idustry-specific data for its members.
What are the functions of gathering market research from govenment statistics?
Can provide information about population, income and economic data. Such information is usually free and can be useful to identify trends over time.
What are the disvantages of gathering market research from company and market research reports?
- You may have to pay to access the data
- It may be incomplete
What are the advanteges of gathering market research from company and market research reports?
Can be a good source of market and competitor information.
What is the function of gathering market research from market research agencies?
These organizations carry out research for other people. They will often provide information to other enterprises or individuals for a fee.
Secondary data is useful to:
- show what products are in demand and who is buying them
- identify the number of competitors or their sales
- identify a gap in the market not being exploited
- identify costs for the enetrprise
- find target markets
- compare the adverts of competing enerprises to compare effeectiveness or great ideas
- spot trends and help identify what may happen in future
What key factors should you consider when choosing a method of market research?
- The type of information (what do you want to know about customers/competitors)
- Time available
- How much you are able to spend
Advantages of primary research
- Up-to-datr information
- Other enterprises have no access to the data
- You can ak the specific questions you want answers to
What are the disadvantages of primary research?
- Excpensive to collect
- Takes time to collect
What are the advantages of secondary research?
- Readily available
- Low or no cost
- Can provide lots of additional helpful information not previously considered
Disadvantages of secodary research
- May not be relevent for the selected purpose
- Can be out of date
Advantages of tables
Can contain a lot of data
Advantages of pie charts
Useful for simple comparisons between different options for the same question.
Advantages of graphs
Good for visual impact
Disadvantages of tables
Not easy to see trends easily
Disadvantages of pie charts
The valuse are shown as percentages rather than actual totals
Disadvantages of graphs
Difficult to present exact numbers
What are the steps of conducting market research?
- Decide the info. you want to find out (WHAT)
- Identify the potential target respondents (WHO)
- Choose suitible method(s) of show research (HOW)
- Develop questions
- Put questions in logical order
- Make sure there are not too many questions
- Test questions before use
- Carrying out the market research
