1.2.2 Market research Flashcards
What is market research?
Process of collecting info about what consumers want, market trends and competitors
What can market research do?
Identify a gap in the market
Inform business decisions
Reduce the risk of starting a business
What is primary research?
Collecting new information that meets the specific need of a business
What are examples of primary research?
Survey
Questionnaire
Focus group
Observation
What are advantages of primary research?
Can ask questions that they need answers to
The information is current
The information wont have been seen by competitors
What are the disadvantages of primary research?
Can be expensive
Can be time-consuming
The results may be inaccurate
What is secondary research?
Involves using data that already exists, or data that has already been gathered by someone else
What are examples of secondary research?
Internet
Market reports
Government reports
What are the advantages of secondary research?
The data is easy to find
Cheap or free to obtain
Can give a good overview of the market
What are the disadvantages of secondary research?
May have been collected for a different purpose and so may be inaccurate
Can be out of date
May not be specific to the business needs
How can entrepreneurs use social media to collect research?
Comments
Reviews
Surveys
Online focus groups about their business
Current trends can be tracked
What are the benefits of using social media?
Quick
Cheap
Up to date
Can respond to customers
Inform business decisions
What is quantitative data?
Numerical can can be measured easily
What is qualitative data?
Opinions, judgements and feelings that cannot be put into a numerical form
