purpose of market research Flashcards
What is market research?
The process of gathering, analyzing, and interpreting information about a market, including information about the target market, competition, and industry trends.
What is the purpose of observing potential customers?
To collect real data about their behaviors, responses to products/services, and purchases.
List the steps involved in conducting observations.
- Create data collection sheets
- Choose locations/times for sampling
- Observe and collect data
- Analyze the data and present conclusions
What is an advantage of conducting observations?
People behave naturally, providing unfiltered data about their actions.
What is a disadvantage of conducting observations?
It is very time-consuming to collect a good sample of observed data.
What are questionnaires and surveys used for?
To ask potential customers a list of questions to obtain information.
How can surveys be distributed?
- By post
- Through email
- On social media
- In person
What is a key advantage of digital surveys?
They can obtain lots of responses quickly and cheaply.
What is a potential disadvantage of surveys?
Answers may be inaccurate or incomplete.
What is a focus group?
A gathering of potential customers who are asked a set of questions.
What is a key advantage of focus groups?
They allow for gathering lots of qualitative data and opinions in one event.
What is a disadvantage of focus groups?
They require lots of careful planning and can be costly.
What is the purpose of consumer trials?
To allow potential customers to try a product for free in return for their opinions.
What is a key advantage of consumer trials?
They provide very specific and relevant feedback.
What is a disadvantage of consumer trials?
They can be very expensive and time-consuming to organize.
What is test marketing?
Launching a product in a small sector of the target market to collect customer feedback before a full launch.
What is an advantage of test marketing?
Accurate information is gathered from actual customers who have bought the product.
What is a disadvantage of test marketing?
It can be very expensive and time-consuming.
What does published company data include?
- Accounts
- Ownership
- Reports for shareholders
What is an advantage of published company data?
It provides detailed financial information about existing competition.
What is a disadvantage of published company data?
It can be hard to find objective information as reports are made for shareholders.
What are government statistics?
Free, detailed numerical information on various sectors of the economy.
What is an advantage of government statistics?
They are easily available and free.
What is a disadvantage of government statistics?
They may not be specific to business needs.
What are market research companies?
Providers of in-depth quantitative and qualitative information on specific areas of business.
What is a key advantage of using market research companies?
They provide comprehensive information tailored to business needs.
What is a disadvantage of using market research companies?
Their services can be expensive.
What do magazines and newspapers designed for businesses provide?
Industry-specific information and trends.
What is an advantage of magazines/newspapers for businesses?
They are easy to acquire and provide up-to-date information.
What is a disadvantage of magazines/newspapers for businesses?
They can be expensive and dominated by advertising.
What do internal company records consist of?
Numerical data on sales, budgets, and customer profiles.
What is an advantage of internal company records?
They provide detailed data not available elsewhere.
What is a disadvantage of internal company records?
They are only available to people inside the company.
