Marketing - 3.2 (Market Research) Flashcards
What are the two types of orientated businesses?
Product-orientated: main focus is on product itself
Market-orientated: carries market research to find customer wants then develops the product
Primary research - define, pros and cons
Primary research: collection of original data with potential/existing customers
Advantages:
Specific
Up to date
Info will not be available to competitors
Disadvantages:
Expensive
Time consuming
Can have bias questions - lead to inaccuracy
Secondary research - define, pros and cons
Secondary research: info that has already been collected, ready for use
Advantages:
Less time consuming
Cheap
Disadvantages:
Not specific
Not up to date
Quantitative and qualitative
Quantitative info: collection of numerical data
Qualitative info: answers are opinions
5 main methods of primary research
- focus groups
- observation
- interview
- postal questionnaire
- online surveys
Focus group, define, pros and cons
Focus group: small group of people talk about a product together
Advantages:
Lots of opinions
Disadvantages:
Time consuming
Biased
Some people may not want to share opinions in front of everyone
Observation, define, pros and cons
Observation: observing what people do
Advantages:
Accurate
Cheap
Disadvantages:
No opinions - basic figures
Interview, define, pros and cons
Interview: ask question in person
Advantages:
Interviewer can explain questions
Detailed response
Disadvantages:
Time consuming
Can be dishonest
Postal questionnaire, define, pros and cons
Postal questionnaire: send questions to peoples houses and they post them back to the business
Advantages:
Get responses from many regions
Disadvantages:
Low response rate
Online surveys, define, pros and cons
Online survey: participant fills in their response online and these responses automatically get sent to the business
Advantages:
Cover wide geographical area
Disadvantages:
Low response rate
Methods of secondary research
- Government
- Newspaper
- Internet
- Market research agencies
Why is sampling done?
Its too expensive and impractical to survey the entire population
2 ways of sampling
Random sample: people selected absolutely randomly
Quota sample: People selected based on characteristics
Why market research is not always accurate
- biased questions
- sample too small
- not honest
- out-of-date stats (if use secondary research)
