Market Research

Question 1

What is Market Research?

Answer 1

Market research is finding out information about customer needs and wants, and the market.

Question 2

What is the purpose of market research

Answer 2

Find out who is buying the products and their buying behaviour.
Find out what customers think of current products.
Find out what customers want in the future.
Find out how successful marketing campaigns have been.
Discover reactions to changes e.g. Prices.
Find out what competitors are offering.

Question 3

What are the main reasons for businesses to carry out Market research?

Answer 3

It is to allow the business to increase market share, improve sales and profitability, and to make sure customers get what they want.

Business also want to improve their overall image and reputation and encourage customers to return in the future, ensuring customer loyalty (returning customers will put the business ahead of the competition).

Question 4

What is field (primary) research?

Answer 4

Field research is where new information is gathered first hand by the business for a specific purpose.

E.g. Online survey, e-mail surveys, postal surveys, text message surveys, paper surveys ( comment cards for a hotel).

Question 5

What is desk (secondary) research?

Answer 5

Desk research is where the business makes use of existing information which has previously been gathered for a different purpose.

E.g. Websites, government statistics, existing company records, newspaper & magazine articles, textbooks, etc.

Question 6

Describe the differences between field and desk research?

Answer 6

Field research is the collating of new information that’s first hand whereas desk research is where businesses make the use of existing research.
Field research is up-to-date information whereas desk research may be out of date.
Field research is time consuming whereas desk research is quick.
Field research requires paid interviewers or expensive research companies whereas desk research is free.

Question 7

Discuss field research

Answer 7

Advantages

• the information is accurate and reliable, as the business knows how and when it was gathered.
• the information can be kept private from competitors, therefore business can improve their overall effectiveness in the market.
• it’s fit for the propose its needed for
• information is up to date

Disadvantage

• it requires trained and paid interviewers or expensive research companies making it not cost effective
• time consuming to collect as it can involve lengthy questionnaires and responses

Question 8

Discuss desk research

Answer 8

Advantages

• desk information is quick to gather
• cost effective, may be cheap or free
• desk information already exists so is easy to look up

Disadvantages

• information may not be relevant to the business
• may not be reliable or up to date
• it’s freely available to competitors so not always helpful in gaining a competitive edge.