Market Research Flashcards
Why is understanding the market a priority for business
1 the expense of launching new products
2 the importance of maintaining market share
3 importance of preserving profile and brand value of existing products
They need to understand markets so they design products and marketing campaigns that meet needs of customers
Market research reduces risk
What is market research
The process of collecting information and data about a business - customers, the marker place and activities of competitors within the market place
Allowing decisions to be made in a more scientific way
How does market research help businesses make decisions in a more scientific way /What do they find out through market research
1 discover the needs of the customer - who they are, how many, what motivates them to buy the product and how much they are willing to pay
2 Understand the structure of the marketMR tells the manager if market is segmented, separated by geographical difference or social ecconomic differences
3 Discover if market demands are increasing or not in order to predict future sales (extrapolation of trends) and profit potential likely in the future
4 establish at what stage the product is at in its life cycle so they can consider its worth
5 Test consumer response to a new product so adaptions can be made to meet customer need
6 Assess effectiveness of previous campaign - were the aims achieved, does the target market know the product
7 monitor competition and understand activities of existing new and potential customers
what is primary research also known as
field research n
What is primary research
It gathers information first hand - new data - primary data that is specific to the business
List and describe methods of Primary research
1 Questionnaire - series of questions asked face to face, postal survey or online to gain specific informations
2 Focus Groups - they meet regularly and have chaired discussions on themes set by the market researcher
3 consumer panels- which are more product focused than focus groups. They are often asked to keep a diary on their shopping pattern for examination and follow up questions by market researcher
4 test marketing - often used after product has passed development stage and is almost ready to launch. A trial release of a product in restricted areas to gather customer response which are reacted to before product launch
what is secondary research
What are the advantages and disadvantages
uses previously collected data(desk research). The information is not specifically gathered for the business but adapted
It is available at a lower ost than primary
List and describe methods of secondary research
1 official publications - census, social trend surveys
2 industry magazines - provide information on specific retail areas
3 yellow pages - business tele phone listing gives details of businesses operating in different marketing sectors
4 internal information eg sales and customer data figures - loyalty cards give data on customer spending habits
5 on line desk research
Field desk research
http://bit.ly/23cbYXZ
Who does the research and why market research companies as field research is expensive and time consuming
Market research
http://bit.ly/1QkYUdq
What does quantity research aim to do
gather information based on facts that can be tested. It leads to objective conclusions and hypothesis that can be tested
What is statistically valid data
Findings in a mathematical form they are not subjective so can not be eliminated
What does qualititive research do
gathers opinions and views it discovers the attitudes and motivations of consumers
What is a major method of gathering qualititive information
Focus groups and observational research
