5.3 The purpose and methods of market research

Market Research

The process of gathering, analysing, and processing data that is relevant to making marketing decisions.

Тarget Market

The specific group of consumers a business intends to sell a particular product to.

Qualitative Market Research

An approach to research designed to uncover the attitudes, feelings, and opinions of customers that affect their buying decisions.

Quantitative Market Research

The collection of numerical marketing information that can be measured, analysed statistically, and stated as numbers.

Primary Market Research

Also known as "field research," this involves gathering new data for the first time.

Secondary Market Research

Also known as "desk research," this involves using data that has already been gathered for other purposes.

Focus Group

A small group of people (usually fewer than 10) selected to provide in-depth views on a particular business issue, such as a brand image or new product.

Formula for Market Size (Value)

Number of products sold x average price per product.

Formula for Market Share (%)

Sales of the product / Total market sales x 100.

Formula for Market Growth (%)

Change in market size / Original market size x 100.

Purpose of Market Research

To identify the level of demand, understand customer requirements, track the actions of competitors, and identify target markets.

Primary Research Methods

Includes observation, questionnaires, surveys, interviews, and focus groups.

Secondary Research Methods

Includes using the internet, books, trade journals, newspapers, and government reports.