The process of gathering information about the market and customer needs
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Primary market research
Carried out first hand, so is specific to the business
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Secondary market research
Research using existing sources that has already been carried out
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Sample
a portion of the population asked for their opinions in order to draw conclusions about the behaviour of the whole population
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Biased
unbalanced or inclined to agree with a particular judgement or idea rather than presenting the evidence fairly
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convenience
A product or service's ability to fit in well with a customer's lifestyle or routine, the ease with which it can be used and/or its easy to reach location
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Quantitative data
numerical data
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Qualitative data
Gaining opinions and views from the customers-why, how, what, where. Use of open questions
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Focus group
Getting a group of customers together to gain insights into their attitudes towards a business
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What are the four customer needs?
price, quality, choice, convenience
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Two benefits of meeting customer needs
Helps a business generate more sales, helps business survival
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What is the purpose of market research
To identify and understand customer needs To identify gaps in the market To reduce risk To inform business decisions
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What are the four methods of primary research
survey, questionnaire, focus group, observation
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What are the 3 methods of secondary research
Internet Market reports Government reports
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The role of social media in collecting market research
Deepens understanding of the market Identifies popular trends Improves their products and marketing Saves time conducting research
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What is the importance of reliability of market research data?
Inaccurate data can lead to businesses making the wrong decisions. Mistakes are usually traced back to the validity of the market research (did interviewer ask leading questions) and reliability of data (data from a representative sample of the population as a whole or not
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What are the 5 main market segments
Location, Demographics ,Lifestyle , Income and Age
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Target Market
A particular group of customers at which a business aims its products and services
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Market Segmentation
Dividing a larger group of customers from a market into smaller groups with similar characteristics e.g Age, location, income
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Demographics
splitting the population into different structures e.g Age, income
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SWOT analysis
a planning tool used by businesses to identify their internal strengths, weaknesses, opportunities, and threats
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Market map
A diagram used to help spot a gap in the market and identify competition
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What are 5 key competitor strengths and weaknesses?
Price Quality Location Product range Customer service
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Impact of competition on decision making
Affects price, forces businesses to reduce costs, forces businesses to innovate
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