4.4 - Market Research Flashcards
(36 cards)
What is market research
is the process of using different marketing activities designed to discover the opinions, beliefs and preferences of potential an existing customers. Basically, It helps to identify and anticipate the wants and needs of customers
What does market research involve
can involve collecting data and information on competitors and market trends to gain insight into an specific market.
Businesses use market research information to make decisions
What are the 5 purposes of market research
•Up to date information - particularly important in industries that are constantly changing (i.e. fashion, technology) so they can use the first-mover advantage.
•Improve marketing strategies - done by assessing how a firm implements the activities required by its marketing mix in specific market segments.
•Assess customer reactions to a new product – it can be done by testing the market using a small group of costumers. This can present possible losses if the product proves unsuccessful, reducing the risk of product failure.
•Understanding rivals - to provide current or latest information regarding the activity in the market.
•Helps predict the future – or at least what is likely to happen in the future. Understanding the possible trends that will help the business react accordingly (i.e. an upcoming recession might help the business spend less)
What are the 2 market research methods
A)Primary market research – also known as field research, it involves the collection of first-hand (new) information from the market. Its is often used to gather data and information from costumers to identify their buying patterns and anticipate changes in market trends.
b)Secondary market research – also know as desk research, refers to the collection of second-hand data and information that already exists meaning that the data and information have previously been gathered by others.
What are the 4 methods of primary research
- Surveys
- Interviews
- Focus groups
- observation
What is a survey and what are some types
Surveys – these are questionnaires sent out to a particular target audience to unable to get useful information. They are the most common method of primary research and there are several types, such as:
i.Self completed surveys – done by the business to get information from their own costumers
ii.Personal surveys – done face-to-face, helps to clarify some of the questions
iii.Email or online – takes advantage of technology, its quite impersonal but practical
iv.Telephone – calling customers or random people to get the information
What are advantages of surveys
- a large amount of data can be collected in a short time
- of well designed they can be easily understood
- can be used to collect data on anything
What are disadvantages of a survey
- the answer replied might not be a accurate response of how they actually feel
- can be poorly designed
- it can be time consuming
What is a interview
is a one-to-one discussion between an interviewer and an interviewee where to investigate their personal circumstances, opinions, beliefs or attitudes in detail. Generally carried out in person, but telephone or different technology options (i.e. zoom, teams, google meet) can also be used.
The information from the interview is then analysed to identify the views that respondents share and identifying the differences as well.
What are the advantage of a interview
- since questions can be specific more info can be gathered
- one to one attention more repoinses can be achieved as info can be clarified
What are the disadvantages of a interview
- process can be time consuming
- some interviews might affect interviewees answer since they could be bias
What is a focus group
a small group of people brought together to discuss a specific idea. The group is typically made up of participants who share a similar customer profile (i.e. teenage girls who like make up; teenage boys who like computer games, vegetarians or vegans to try new products). The participants answer questions designed by the marketer researchers discussing freely about their opinions, reactions or ideas. In some cases they can also taste the product.
These groups can provide important information to the firm to help the business with new product, strategies etc. Often used when a product is going to be launched (or re-launched)
What are some advantages of a focus group
- cheap and easy
- results can help company understand views of new products and help the firms statagies
- help identify key info on product that business have not stated
- get a insight of what customers are thinking about competition compared to firm
What are disadvantages of focus groups
- if group is too small the results wont reflect what the entre market is thinking
- responses might be peer effected
- costly
What is observations
this method involves watching how people behave and respond in different situations. Observations can be carried out using surveillance filming, photographic evidence or in person (by using a checklist).
The Government can use this method to evaluate traffic development, measuring the traffic in certain roads. Also, supermarkets might use it to evaluate the how long people take on looking at a certain display or determine queuing times. Other examples that might use the observation method are: restaurants, health centres, post office, etc.
What are advantages of observations
- direct method of collecting data
- large amounts of data can be collected at one time
- cost effective
What are disadvantages of observation
- complete answers of problems wont be obtained
- it can’t be used to study attitudes or opinion
What are 4 types of secondary research
Academic journals, Media articles, Government publications Market analyses and Online content.
What is a academic journal
they are periodical publications from educational and research institutions where data and information relating a particular academic discipline is published (i.e. the Harvard Business Review or Journal of Finance). The articles in these Journals are “peer reviewed”, which means they are reviewed by experts in the field before being published. The main purpose of these articles is to share latest educational information instead of selling it at a profit.
What are advantages of academic journals
- reliable as they are checked by other academics
- since they take less time to publish (than books) they are available easier
- Most academic journals include reports, topics specific information and reviews of current research. That is very helpful for a firm that is looking for original research.
What are disadvantages of academic journals
- They are very specific, since they contain specific academic interest. Hence they might not help for general – interest topics
- The peer review process could take longer than expected, so the latest information on a specific topic might not be updated.
What is a media article
this refers to the general media that contains valuable data and information as part of a secondary research . For example; Newspapers, TV documentaries and books.
However, media articles can take time on been published and nowadays the production of newspapers can be considered a waste of paper and energy resources. Therefore most of the information is now online.
Additionally, communicating via newspaper is cheaper than via television,
What is a government publication
these are articles produced by the Government on various topics such as inflation, population growth, social trends or customer expenditure patterns. They provide useful statistical information on topics like education, trade, etc. However, in some cases is difficult to access this information.
What is market analysis
it reveals the characteristics and the trends for a particular product or industry (i.e. market size, market share and market growth rate). New business often rely on market analyses to formulate their market plan.
Market analyses data and information can be found in commercial sources and public information sources such as: market research firms, competitors (through their annual reports) and /or trade publications (specialized magazines).
Some examples of organizations that provide market analyses are: Mintel, Verdict and Dun.
