Market Research Flashcards
Market research
Is the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
Three step approach:
- Determining information needs
- Collecting data from primary secondary sources.
- Analysing and interpreting data.
Market research- primary data
Primary data- information gathered first hand by he business.
- Conducting surveys- gathers data by asking questions or interviewing people.
- Observation- recording behaviours of customers. Example undercover
- Experimentation- altering factors under tightly controlled conditions to evaluate cause and effect.
Market research- secondary data
Refers to information that some other person or organisation has already collected. For example, census data gathered by government organisations. Two types of secondary data include:
-Internal data
Information that is collected from inside the business. Such data include financial statistics and customer feedback.
-external data
Refers to published data from outside the business. Such as reports produced by the Australian Bureau of statistics (ABS).
Purpose of market research
It helps a business owner identify the target market, understand existing customers, set realistic targets, develop effective strategies and identify business opportunities.