market research Flashcards
why is it important to conduct market research
- helps understand customers and competitors
- identify customers wants and needs
what is the result of identifying and satisfying customers wants and needs
- stay competitive
- increase sales
- create target markets
- find market opportunities
how does market research help businesses to stay competitive
information on competitors pricing, products and promotion methods can help improve its strategies to become more competitive
how does market research help a business to increase sales
- it can help identify demand in products which is useful for adjusting prices .
- it can also help to identify how much of a product is needed to be made.
what is primary research
primary research is research you conduct on your own. its is more relevant and detailed and up to date
Examples of primary research
- Questionnaires
- Surveys
- Interviews
- Focus groups
Explain questionnaires
A set of questions that links to a certain goal that a business is aiming to find out by asking customers opinion on the topic
Explain surveys
Surveys are a quick method that asks a series of questions to get customers experiences or opinions on a product or service
Explain interviews
Asking customers opinions on a product, the business or a survey face to face
Explain focus groups
Similar to an interview customers in a group are given scenarios and are asked to give their opinions or views on a good or service but in more depth. Sometime there is an incentive
Identify 3 advantages of primary research
- Relevant and specific
- accurate to the business
- Up to date
Identity 3 disadvantages of primary research
- Time consuming as a opportunity cost
- expensive
- Sometimes difficult to collect
Explain secondary research
Secondary research gives access to a wide range of data it can analyse past trends. However may be out of date and not that relevant
Examples of secondary research
Internet research
Newspaper articles
Market research reports
Government surveys
Explain internet research
Its can be an overview of information specific to the businesses target market for example by looking at competitors details
Explain newspaper articles
You can find a finance section in newspapers
Explain market research reports
They are specific to that industry which can help inform which customers to target
Explain government surveys
Normally consists of general information that may not be relevant to your business but still helpful
List 3 advantages of secondary research
- Quick and easy to collect
- Easy to analyse
- Industry specific information
List 3 disadvantages of secondary research
- Not specific to the business
- Could be inaccurate
- Could be out of date
What is quantitative data
Quantitative data can be measured or reduced into numbers
What is qualitative data
Information on people’s feelings/opinions in a greater depth
