Start Up Market Research

Question 0

Primary market research

Answer 0

Primary research involves going out and doing brand new, tailor made activities that answer specific questions.
Eg. Questionnaires or focus groups

Question 1

Market research

Answer 1

the starting point to discovering what the market is like:

Question 2

Advantages of primary market research

Answer 2

. It gives you the latest, up to date information from the market place
. Can access the psychology of the customer
. Can aim questions directly at your research objectives

Question 3

Disadvantages of primary market research

Answer 3

. Results may only be usable if comparative back data exists
. Expensive - £10,000+ per survey
. Risk of questionnaire and interviewer bias

Question 4

Secondary research

Answer 4

•Secondary research involves using existing information to provide answers.
Eg using the internet or government statistics

Question 5

Advantages of using secondary market research

Answer 5

. Obtained without cost
. Good overview of the market
. Usually based on actual sales figures or research on large samples

Question 6

Disadvantages of secondary market research

Answer 6

. Expensive to buy reports on many different marketplaces
. Not tailored to your own needs
. Data may not be updated regularly

Question 7

Qualitative data

Answer 7

–Data about opinions, attitudes and feelings

Question 8

Quantitative data

Answer 8

Data collected in numerical form, usually large scale

Question 9

Qualitative market research

Answer 9

. based upon the opinions of a small focus group or in-depth one to one interviews rather than numbers.

Question 10

Advantages or qualitative market research

Answer 10

• It examines why customers do what they do e.g. what customers think of a certain brand.
• This can often be more useful to businesses as it gives them real life information from the mouths of the customers.

Question 12

Advantages of quantitative market research

Answer 12

• It is often used to show what is happening in the market e.g. brand x has 56% of the market share.
• It is used to explain what has happened.

Question 13

Quantitative market research

Answer 13

based on relatively large samples and is therefore statistically valid.

Question 14

Sample

Answer 14

a small group or sample are that represent the larger target market.

Question 15

Target market

Answer 15

Everyone in the population who you want to market your product or service to

Question 16

Random sampling

Answer 16

• All the members of the target population have an equal chance of being selected.
• Often lists are used and randomly names are selected.

Question 17

Disadvantage of random sampling

Answer 17

can be time consuming as once the names are selected, these people have to be contacted and surveyed

Question 18

Quota sampling

Answer 18

Interviewers select people within the target population who meet certain criteria e.g. age, income, gender.

Question 19

Advantages of quota sampling

Answer 19

easier and quicker to complete than a random sample (hit your quota and stop)

Question 20

Stratified sampling

Answer 20

• A selection people are randomly chosen from within a sub group.
• This is used when the target population has particular characteristics that you want reflected in your sample. (Females 17-24)