Marketing Flashcards
What is Marketing?
Marketing is the process responsible for identifying , anticipating and satisfying customer requirements profitability.
What is market research?
The collection of information from consumers and people who may become consumers, finding out whether they like or will buy the firm’s products
Purpose of Market Research
To find out info about customers and what customer are most like to buy
To reduce the risk of selling the wrong products or services
To find out the best place to sell a product/service
What is primary research?
Primary research is also known as field research. It is the collection of original information and is carried out by making direct contact with consumers.
Methods of primary research
Observation
Testing
Interviews
Questionnaires
Consumer panels
Advantages of primary research
- information is up-to-date, more relevant and accurate
- competitors will not have access to info/research giving a competitive advantage
- The business can design the research, so they can obtain exactly the info they want
Disadvantages of primary research
- can be very expensive - not at their job
- very time consuming - not at their job
- difficult to obtain - people may not want to fill in questionnaires, surveys
What is secondary research?
Also known as desk research. It is research using published statistics,data and other information which have already been collected and analysed.
What are some examples of methods of secondary research
Government publications
Internet
Newspapers and journals
Firm’s internal records
Advantages of secondary research
- The Information is cheap to obtain
-The information is usually available immediately
-Businesses can find out what it’s competitors are doing
Disadvantages of secondary research
- the information may be out-of-date , not relevant
-Every other business can view this information- no competitive advantage - The data was originally collected for a different purpose, may be difficult to make sense of
Methods of primary research - Questionnaires and Interviews
Most common method. Can be conducted by telephone, face to face, mail or the internet/e-mail
Advantages of Questionnaires and Interviews
- Info is taken directly from people who are or will be customers
-Questioner/Researcher can help people understand the questionnaire
-The questions are designed to find out the exact info the business requires
Disadvantages of Questionnaires and interviews
-Some people do not want to be stopped and asked questions
-People can misunderstand and give misleading responses
-It is a slow method and can be expensive
Methods of primary research - Observation
Involves watching or observing the reactions of people to products
Advantages of observation
- cheap for the business
- Does not inconvenience customers
Disadvantages of observation
- less accurate and open to interpretation
- not suitable for all products
Methods of primary research - Consumer Panels
Involves taking responses from people who regularly sit in on panels and give their personal opinions on different products or other consumer information. They are selected for their expertise and knowledge.
Advantages of Consumer Panels
- very detailed information can be gathered
-they are skilled,impartial,experienced and give high quality answers
Disadvantages of Consumer Panels
Can be quite expensive, must pay those on the panel
Methods of primary research - testing
Involves members of the public being given samples of the product and being asked for their opinion on it
Advantages of testing
- Straightforward to organise
- Consumer’s first hand opinions are given
Disadvantages of testing
- May not test a cross-section of the public, only certain people may attempt it
- not suitable for all products
What is Sampling?
Sampling is a form of market research. It involves questioning a selection or a sample of people.
It would be impossible to interview or questionnaire every single person, so sampling is used to find out the views of a selection of the population.