Component 1- 06. market research

what is market research

the action or activity of gathering information about consumers needs and preferences

objectives of market research

• customer needs

• new market opportunities

• analysing competitors

• marketing campaign

• assess market viability

• improve product development 

• reduce decision making risks 

what is primary market research

involves collecting primary data. This information which did not exist before the research began 

advantages of using primary research 

• data can be collected that directly applies to the issue being researched 

• only the organisation that initially collects it will only have access to it 

• it is more reliable 

disadvantages of using primary research

• more expensive to collect

• takes longer to collect

• the sample taken may not represent the views of all the population

• if research method is flawed the findings are flawed

What is secondary market research?

involves the collection of secondary data. This is information that already exists in some form

what is internal secondary market research?

analysis of data within your own organisation- annual reports, company intranet, departmental records etc.

What is external secondary market research?

analysis of data from sources outside your organisation- competitior analysis, goverment publications, MINTEL etc.

Advantages of secondary market research?

• low cost

• time efficient

• wide range of data

• in-depth insights

• broad perspective

disadvantages of secondary market?

• out-dated information

• lack of specifity

• questionable quality and accuracy

• no control over data

• potential for bias

• gaps in content

what is qualitative data?

collection of attiudes and beliefs

what is quantitative data?

collection of data that can be measured, usually statistical

how useful is market research for competitors?

• primary research becomes secondary research for competitors

• low coast

• low time

It depends on …

• availability for competitors

• is the business coping ideas

• is the research fully relevent

how useful is market research for customers? 

• more likely to show customer wants and needs 

• advertising to meet custoimers needs 

• innovation- customers are getting better products 

It depends on …

• how well market research is used 

• how innaccurate the research is 

how useful is market research for employees? 

• correct decisions made because of market research 

• business is more successful 

• increase profits 

• could be passed onto employees - increased wages or promotions 

It depends on … 

• if business makes the correct decisions 

• if decisions are long term or short term 

• if the extra profits goes to the employees 

how useful is market research for shareholders?

• lower costs

• more products being sold

• more profit

• increased dividens

• increase share price

• potential new processes - effective marketing

It depends on …

• price of the market research

• higher cost