Chapter 51 Flashcards
What is market research
A systematic objective collection and analysis of data about a particular target market involving a form of data collection e.g. primary or secondary
What does market research concentrate on
Recognising customers need and exploring how best to satisfy that need
What is the purpose of market research
To achieve an increased understanding of the subject matter
Why is market research undertaken
- to describe the market
- the explain the market
- to predict changes in the market
- to investigate the reaction of consumers in the future
What is done when describing the market
-The business must be able to identify the customers or consumers so that they are targeted appropriately
-identifying trends is vital
- knowing about the percentage of the market a business hold is valuable and help a business decide what can be done next
What is done when explaining the market
- the business must understand why changes in the market have taken place and why a business has increased or decreased market share
- important to identify reasons for success or failure
- businesses need to know whether there are differences in consumer reactions on a regional basis
What is done when predicting the market
- knowing how consumers will react to changes provides a valuable insight
E.g. reducing the prices of products and promoting may draw consumers in and encourage customer loyalty - research is done to highlight the consequences of introducing a new model
What is the market research process
Businesses may decide to undertake the project themselves or they may choose to hire a market research agency. It’s crucial to define the research objectives before undertaking the project then the researchers can use many types of research techniques and whatever collected is either quantitative or qualitative
What is quantitative research
It involves a collection of facts and it concentrates on numerical data e.g what customers purchase. it’s very structured involving large numbers of interviews and questionnaires. It’s used to establish trends and can decide for the business if it’s worthwhile
What is qualitative research
This can be seen as subjective as opinions are sought. It provides understanding of why things are the way they are and its more of a topic guide where there is more discussions with thoughts and feelings
Qualitative research involves primary and secondary research what is primary and secondary
Primary concentrates on the opinions of consumers but secondary informs a business about the numbers within a market for a product
Deciding a type of method for research can depend on what
Cost and budget constraints
Marketing objectives
Number of people to be questioned
Examples of primary field research
Interviews
Questionnaires
Observation
trial marketing
Interviews
Allow for a great amount of detail where opinions are shared but it is time consuming and expensive.
Questionnaires
This is a widely used method and it is a quick and economical method of gaining opinions.
