Market Research Flashcards
When conducting market research, a business could find information on…
Demand
Market share
Competition
Target market
How can a business find information about demand for a product or service?
Using the internet
Seeing how successful other businesses in the area are
Collecting customer data (through the internet, clubcards ect)
Why is understanding it’s market share important to a business?
It can indicate which businesses make the most sales and implement changes accordingly to compete with them
Why should a business find information on it’s competition?
To be able to compete with their prices and to offer something which they don’t
Target Market: a business will target a market segment to…
-change its position relative to competitors (for example, if competitors all focus on one segment, a business can target another in order to gain more sales there)
-advertising could appeal more and be more persuasive to a specific segment
Quantitative data
Involves numbers regarding the size of a market, it’s growth ect
Qualitative data
Involves views and opinions but doesn’t provide statistically reliable information. Focuses on why customers buy products and their views on them.
Primary research
Uses data gathered for the first time, typically by the business which will use it (also called ‘field research’)
Advantages of primary research
Tailored to meet the business’s needs
Is up to date
Disadvantages of primary research
Can be expensive (conducting large surveys for example)
Can give misleading results (if the people surveyed don’t represent the whole group for example)
Secondary research
Using data which already exists and has been gathered before (also called ‘desk research’)
Advantages of secondary research
Can be gathered quickly and cheaply from the internet, books ect
Can provide information on a much larger population. A business may be unable to do research on the same scale
Disadvantages of secondary research
Existing data may not be exactly what’s needed. For example, it may look at a larger area when you need to look at a more specific one
May be out of date, one or two years old possibly
Forms of primary market research
Telephone survey, door to door survey, focus groups, internet research
Advantages/disadvantages of telephone surveys
Can call when it’s convenient to the business
Can’t SEE how people respond (body language, ect)
People may not answer their phones or be reluctant to give answers
