1.2.2 Market research Flashcards
Definition: Market research
Market research is where businesses try to find out what
customers want/need, and also look at what competitors
are doing/offering.
To identify and
understand customers
A business should use
market research to help
them identify what a
customer need is and how
to meet and exceed that
need
To identify gaps in
the market
A business will carry out
marketing research to
spot a gap in the market
or a potential business
opportunity
To reduce risk and
make informed business decisions
Market research helps to reduce
the amount a financial risk has
It gives the business owner solid
information on which to base a
decision
Definition: Primary research
Primary research is the gathering of new
information that is specific to the business
What is a primary research?
Primary research is original data
gathered by the researcher
The information does not yet
exist, so it could not be found
on the Internet, a website, in a
magazine or anywhere else
What are 4 main primary research
methods
1) Survey
2) Questionnaire
3) Focus group
4) Observation
Definition: Secondary research
In secondary research the information already
exists in some format, someone has already
collected the data
What are 3 main secondary research
methods
1) Internet
2) Market reports
3) Government reports
What is Quantitative data
Involves gathering data
and measuring
responses
Data displayed in
charts, graphs, or as
statistics and
percentages
What is Qualitative data
Seeks to gather and
explore feelings and
thoughts about a product
from consumers
Information gathered by;eg
Focus group discussions
The importance of the reliability of
market research data
A business may hire a
market research company
to carry out the survey
The business then needs
to decide if the data can
reliably be applied to a
wider audience.
