5.3 Market research

Question 1

Purpose of market research

Answer 1

• See the demand for a product.
• See the level of competition.
• Study target market (may lean towards a certain type of segmentation).

Question 2

Qualitative market research

Answer 2

Collecting information based in views and opinions.

Question 3

Quantitative market research

Answer 3

Collecting factual information that can be quantified and recorded easily.

Question 4

Types of market research techniques

Answer 4

• Questionnaires: qualitative or quantitative?; primary or secondary research?
• Surveys: quantitative so easier to analyse; may not provide enough depth.
• Interviews: more depth in answers; time-consuming.
• Focus groups: qualitative and in great depth; concerns on costs, time and their representativeness of target market.
• Internet research: secondary so quick and easy; not personally tailored to business needs/aims.
• Printed press (e.g. newspapers): normally secondary; local or national?

Question 5

Market size

Answer 5

The potential number of customers a business could sell their product to.

Question 6

Market share

Answer 6

The percentage of the market that a business owns/already has.