Market Research Types (1.1.2)

Question 1

What is Market Research?

Answer 1

Market Research is used to predict market characteristics and trends, to identify customer wants and needs and to reduce the risk of failure. It can be used to identify market size, competition, types of consumers, consumer behaviour, trends, regional differences and success and failure.

Question 2

What are the two types of Market research?

Answer 2

Primary and Secondary Market Research

Question 3

What is Primary Market Research?(5 Examples)

Answer 3

It is brand new information gathered by the business which is exclusive to your business. E.g. Surveys, Questionaries, Focus Groups, Experiments and Observations.

Question 4

Advantages and Disadvantages of Primary Market Research? (1 Advantage, 1 Disadvantage)

Answer 4

Advantage:
Brand new info exclusive to you as a business.
Disadvantage:
Could be bias leading to inaccurate results and its very time consuming and expensive to gather the data.

Question 5

What is Secondary Market research?

Answer 5

Research that has already been gathered by past Businesses. E.g. Past sales Data, Market Reports, News.

Question 6

Advantages and Disadvantages of Secondary Market Research? (1 Advantage, 3 Disadvantages)

Answer 6

Advantage:
Its quick and easy to access large amounts of data.
Disadvantage:
However it can be expensive, competitors may also have access to it so no competitive advantages and the data could not be in date or relevant to the business in any way.

Question 7

What are Methods of Market Research using ICT? (3 examples)

Answer 7

Online Surveys: Using email lists and websites to complete surveys.
Social Media: Build a relationship with customers and get feedback.
Databases: Customer loyalty Schemes to gather purchasing data.