Market research

what is market research?

• finding out what customers want and need

• organised effort to gather information about target markets and customers

what are the purposes of market research?

• identify and understanding customers

• gaps in market

• reduce risk

• inform business decisions

what does identify and understand customers include?

• identify customer needs

• understand the potential customers and needs of the existing ones

• essential to future

what does gaps in the market include?

• business use market research to spot gaps in market

• trends change a lot so have to keep up to date

what does research mean?

business remains competitive by selling latest products

what does reducing risk include?

• helps make right choices

• reduces amount of risk inform business

what does inform business decisions include?

• helps make decisions more certain

• gives owner solid information on how to make a decision

what are the two methods of market research?

primary and secondary

what are the four method of primary research?

• survey

• questionnaires

• focus groups

• observation

what are the three methods of secondary research?

• internet data

• market reports

• government reports

what is secondary research?

information that already exists

what is primary research?

gathering of information specific to the business

what are the benefits of primary research?

• collect large amounts of data without manpower

• cost efficient

• data about how customer feels about product

• greater accuracy then direct questioning

what are the disadvantages of primary research?

• can include poor data

• questions not personal

• expensive

• time consuming

what are the benefits of secondary research?

• cost effective

• insight into key industry trends

• information free on ONS Website

what are the disadvantages of secondary research?

• data might be out of date

• very expensive

• results might be out of date

what is a survey?

used to measure customer satisfaction and can gather qualitative and quantitive numbers with this method

what is observation?

Gather data from an observation of buyer behaviour

what is a focus groups?

Group of individuals selected to comment on product or service

what is a questionnaire?

set of questions given to participants of the research, gather data from target audience

what is internet data?

• ideas for new ways to market products

• Find information about competition

what is a market report?

Trend analysis’s

what are government reports?

Demographic information and data on a range of markets and industries

what is qualitative data gathered by?

• Focus groups

• Observations on buyer behaviour

• Interview customers on opinion

what is quantitive data displayed in?

Charts and graphs

what is reliability?

Business hire a market research company to carry out surveys. If these results are easily duplicated, data is reliable.

how is social media used for market research?

• It’s cheaper than a focus group

• More up-to-date

• Larger audience

what is qualitative data?

Seek, gather explore feelings about product from consumers

what is quantitive data?

Gathering data and measuring responses