3.2a Primary Market Research Flashcards
Market research definition
Collection of information that is intended to assist the marketing process
Primary research definition
Research that finds information which did not exist before the research began
Primary research is also known as…
Field research
Advantages of primary research
Information is:
- Relevant
- Accurate
- Up to date
- Owned by the business
Disadvantages of primary research
- Costly
- Time-consuming
- Potential customers can become irritated by surveys
- Could be biased
Primary data examples
- Observation
- Surveys
- Focus groups
What does experiment/test marketing involve?
Selling a new product in a small section of the market in order to assess customer reaction
Advantages of test marketing
Allows them to see whether the product will be successful or not
Disadvantages of test marketing
Product is only released in small area of market so data may not be accurate
What is observation?
Watching how customers behave
Advantages of observation
- Cheap
- Allows product to be designed according to customer behaviour
Disadvantages of observation
Reason why customer is behaving in a particular way is unclear
Focus groups definition
Groups of potential customers that are brought together to discuss their feelings about a product or market
Advantages of focus groups
- Very detailed and accurate
- Good feedback
Disadvantages of focus groups
- Time consuming
- Can cost a lot
