meeting consumer needs: market research

consumer panels

where groups of customers are asked for feedback about products over a period of time

database

an organised collection of datastored electronically

focus groups

a number of customers are invited to attend a discussion about a product run by market researchers

market research

gathering, presenting and analysing information about the marketing consumption of goods

primary research/field research

gathering information directly from consumers in the target market using field research methods

qualitative research

a collection of data based on attitudes, beliefs and intentions

quantitative data

a collection of data that is numerical or quantified

quota sampling

where respondants are specifcally chosen in the same porportion as they exist in the whole population

random sampling

respondants are selected for an interview at random

sample

a small group of people that must represent a porportion of a total market when carrying out market research

secondary research

a collection of data that already exists because it was conducted by other businesses in the market

stratified sampling

quota sampling where respondants are chosen at random

why is market research conducted

to anticipate and identify consumers wants and needs

examples:

• researching design and style

• colour

• economy

• lengevity

• design

• performance and quality of the product

why quantify likely demand

the demand of a product determines weather or not it will launch and saves the business money

e.g

• quanitity of output required

• number of staff/ revenue required

consumer behavior insight

will increase success of a business if some products and services are higher in demand during specific times

methods of primary research

• questionnaires/surveys

• focus groups

• interveiws

• test marketing

methods of secondary research

• social media

• newspaper/magazines

• television/radio

questionaires/ sureveys

• balnace of open and close ended questions

• contains clear and simple questions

• do not contain leeding questions that suggest certain answers

• need to be short and concise to ensure people are bothered to fill them out

advantages of questionaires/surveys

• cheap

• time efficient

• large sample can be acquired

• qualitative and quantitative data can be gathered

disadvantages of questionnaires

• high abandonement rate

• social desireability bias

• some questions can be interpretted differently

advantages of focus groups

• cost effective

• immediate feedback acquired

• qualitative data

disadvantages of focus groups

• small sample size that is not representative of the whole market

• staff need to be trained to run focus groups

• time consuming to analyse the qualitative data gathered

face to face / telephone interviews

a survey where an interviewer asks the questions and clarifies the interpretation

advantages of interviews

• qualitative data

disadvantages of interviews

time consuming

test marketing

where customers are encouraged to test a product before it fully launched to gather feedback

advantages of test marketing

• generate feedback

• increases their competitive advantage

disadvantages of test marketing

requires a loss of revenue as test marketing is free

inconclisive results can be generated

adavantages social media as a form of research

• provides in-depth insights into the customers market

• cost-effective

• gain insight on trends

• fast and easy

disadvantages of social media as a form of research

research conducted is only as good as the questions used. Poorly formulated questions can lead to skewed results, misinterpretation of data, and may not accurately reflect the true opinions or behaviors of the target audience. Additionally, the demographic of social media users may not represent the entire population, leading to biased outcomes.

advantages of newspapers and magazines

• helps assess the competition in the market by analysing the opositions adverts

• some magazines have surveys

• trade journals have useful statistics and buyers guides

disadvantages of newspapers/ magazines as a form of research

The research obtained from newspapers and magazines can be limited as it often focuses on general trends rather than specific consumer behaviors.

• not specific to the current market as it may be aout dated

• publitorial bias

• access to certain articles may be restricted by paywalls, limiting the scope of research

television/ radio as a form of research

• documentaries and podcasts provide valuable information

• ability to analyse adverts to get information on marketing methods

government reports

documents produced by government agencies that provide valuable data and statistics on various topics, which can be used as secondary research to analyze trends, demographics, and social issues.

3 types of sampling methods

• stratified

• quota

• random

stratified sampling

sampling that is divided into segments but the method is random

advantages of stratified sampling

• sub groups are represented

• precise estimates

disadvantages of stratified sampling

• time consuming

• overlapping sub groups can occur

quota sampling

target populationn gets segment into a number of groups that share specific characteristics

advantages of quota sampling

• time efficient

• cheap/cost effective

disadvantages of quota sampling

not representatine of the target market

bias cannot be eliminated as a factor

random sampling

each member of a group as equal chances of being chosen

advantages of random sampling

• representative

• less bias

• efficient

• accurate

disadvantages of random sampling

large sample size required

time consuming

expensive