market research

what is the purpose of market research

to identify and understand customers needs - if business can identify and understand customer needs, with the information the business can use it to create products that exactly what customers needs are.

to identify gaps in the market - can show a gap that can be fulfilled by the business developing new products.

to reduce risk - making decisions based on accurate market research can reduce the risk of business failing

help with decision making- using market research to help with decision making can increase the chance of picking the best option.

what are the methods of primary research

primary research

secondary research

define primary research

business collecting data first hand

advantages and disadvantages of primary research

Advantages

• up to date

• information is specific to the business

disadvantages

• time consuming

• large sample is required or else data may not be reliable.

what are the types of primary research methods

survey

questionnaire

observation

focus groups

survey description (advantages + disadvantages)

questions that people answer to find information about their target market

advantages

• large amounts of data can be collected and analysed easily

• easy to manage

disadvantages

• the sample must be from people that are from the target market for the results to be accurate

what does it mean by target market

specific group of customers that business try aim at.

what is a type of survey

questionnaire

what are the types of questionnaire

postal- sending the questionnaire directly to peoples homes

face-to-face - asking questions directly to people

telephone - contacting people through phone to ask a series of questions

what are the advantages and disadvantages of postal

advantages

• can be sent anywhere business chooses

• can distribute to a large sample

disadvantages

• low response late (since people do not simple respond)

what are the advantages and disadvantages of face-to-face

advantages

• if people that are answering doesnt understand the question the person who is asking can clarify the question

• body language and mood can be note (can detect if they are telling the truth and show how the responder feels)

disadvantages

• low response late

• time consuming

what are the advantages and disadvantages of telephone

advantages

• cheap compared to a postcard questionnaire

• possibly large scale

disadvantages

• possibly low response rate

• time consuming

description about focus group and advantages and disadvantages

a small number of people are brought together to discuss about the businesses product or market

advantages

• information can have really good depth

• give insights of customers perspectives on product or market and behaviour

disadvantages

• small sample size, not reliable data

• time consuming

• based on interviewers behaviour on questioning the responders can make the responders answers biased. (for example, ‘you like this product, right and they might say yes because of the way that the interviewer questioned it)

description about observation and advantages and disadvantages

customers or competitors can be observed, they observe many things: customer behaviour, how they enter the store, peak customer in market etc.

advantages

• observe the behaviour of customers

• less bias since taken in a natural setting

disadvantages

• time consuming

• needs to be done multiple times of the day to make sure accurate data is gained.

define secondary and also tell me the advantages and disadvantages of it.

Business collects data that has already been existed

advantages

• quick to get

• easy to get

disadvantages

• data can be out of date

• information may not be specific to what the business actually wants.

what are the types of secondary research

internet

market reports

government reports

description of internet, advantages and disadvantages

searching up rivals websites, looking at cost information or market trends etc.

advantages

• quick and easy

• large amount of information

• cheap

disadvantages

• information can be out of date

• information may be inaccurate

description of market reports, advantages and disadvantages

reports that analyse the market such as the future trends in market size

advantages

• general overview of market can be gained

• large amount of information

disadvantages

• expensive

• information is more general about markets

what does it mean by market

place or process that buyers and sellers come together the exchange goods and services

description, advantages and disadvantages of government reports.

Government produces a good amount of information about the economy, population etc and puts it in the internet

advantages

• information is from a trusted source

• free

disadvantages

• difficult to understand

• some information might not be relevant to what the business needs.