Researching Demand For Business Idea Flashcards
Market research
The process of gathering data in order to understand current and future customer needs and factors affecting the marketplace.
This reduces the risks associated with developing a new business idea
Up front costs when starting a business
Product development
Investment in equipment and premises to produce the product or provide the service
Spending on initial marketing
Primary market research
Obtained first hand buy the business that is interested in the results. Involves fieldwork
Secondary market research
Data that has been gathered previously by another organisation and is publicly available
Quantitative market research
Market research conducted where the results are numerical and can be analysed statistically
Quantitative market research
Market research conducted where the results are based on opinions and feelings
Primary research Adv
Is certainly up to date as it is conducted as required
Can produce data which competitors don’t have access to
Primary research Disadvantage
Can be expensive to carry out
Can be time consuming to carry out and interpret
Secondary research Adv
Is available immediately and often relatively I expensively compare to PR cost
Secondary research Disav
May be out of date
Difficult to guarantee accuracy and reliability
Sampling
Collecting data from a group of people who will be representative of the target market as a whole
Bias
When information collected from a sample doesn’t accurately reflect variations in the total population.
When sample is small selected
Random sample
Which everyone has an equal chance of being selected
Quota sample
Dividing the taste market into groups according to their consumer characteristic
A % of sample will be allocated to each groups
Stratified samples
Similar to quota samples but select participants within the group on a random basis, to gain greater accuracy
