Market Research

market research

refers to marketing activities designed to discover the opinions, beliefs and preferences of potential and existing customers

Primary research

A type of field research that involved the collection of first-hand data

Purpose (3)

• Gives businesses up to date information 

• Helps firms tailor their market mixes for their target segments

• Helps firms understand activities and strategies used by their rivals

Types of primary research (4)

• focus groups

• survey

• observations

• interviews

Focus groups 

 forming small discussion groups to gain insight into the opinions, attitudes and behaviors of respondents. It is made up of participants who share a similar customer profile

Survey

A document that contains a series of questions used to collect data for a specific purpose. (e.g., self-completed, personal, telephone)

interviews

are one-to-one discussions to investigate personal circumstances and opinions. It identifies the views respondents share and the differences → refine its marketing strategies and is often used when a business is planning to introduce change and new initiatives.

Observations 

 Involves watching how people behave and respond in different situations.  It can be done under controlled conditions (laboratory) or real-life situations (where people don't know that they are being observed)

Secondary Market Research

Involves the collection of second-hand data and information that already exists (Journals, annual reports, publications)

ADV of secondary research (3)

• Data is readily available and faster to conduct 

• Provides meaningful insight into industry trends 

• Huge range of sources of information available 

DIS of secondary research (3)

• Data may be obsolete and irrelevant 

• Information gathered is not tailored to the specific purpose of the firm, thus needs to be further adapted to suit the needs of the business 

• Information is widely available to competitors

Market analysis

• Reveals the characteristics and trends for a particular product or industry (market size, market share and market growth rates) 

• It can help to measure how well a business is doing compared with its rivals

Types of sources for market analysis (3)

• academic journals

• government publications

• media articles

academic journals

• These are periodical publications from education and research institutions

government publication

Governments publish a broad range of data: population census, social trends, labor market developments, trade statistics, unemployment figures and inflation rates

media articles

Media articles are widely available → not peer-reviewed

Qualitative data (2)

• Involves getting non-numerical answers and opinions from respondents 

• The main purpose of using qualitative data is to understand the behaviors, attitudes and perceptions, customers, employees and or respondents

ADVs of qualitative data

• Better than quantitative research for exploring behaviors and attitudes 

• Flexible in the process so useful extra information from interviews

DIS of qualitative data (2)

• Very time consuming to conduct and interpret 

• Interviewer must be highly experienced in facilitating useful information from respondents 

Quantitative data

Involves getting factual and measurable information rather than people’s opinions.

Examples: Closed questions 

• Ranking and sliding scale

Sampling methods (4)

• random

• systematic

• Convenience

• quota

Quota

Where a certain number of people (known as the quota) from different market segments is selected