3.2a - Primary Market Research Flashcards
Market research definition
Collection, analysis and evaluation of information intended to assist the marketing process
Why would a business carry out market research?
- Spot opportunities
- Decide what to do next
- See if plans are working
What is primary research also known as?
- Field research
- First-hand research
Primary research definition
Research that finds data which did not exist before the research began
Advantages of primary research:
Information is:
- Relevant
- Up to data
- Accurate
- Owned by the business
Disadvantages of primary research:
- Costly
- Time-consuming
- Potential customers can be irritated by surveys
- Biased
- Only a snapshot
What is secondary research also known as?
Desk research
Secondary research definition
Research that uses data which already exists
Examples of primary data:
- Observation
- Surveys
- Interviews
- Focus groups
- Test marketing
Test marketing definition
Selling a new product into a small section of the market in order to assess customer reaction
Advantages of test marketing:
- Can use reactions to improve product
- Allows the business to see whether the product will be successful or not
Disadvantages of test marketing:
It is only released into a small section of the market so data may not be accurate
What does observation involve?
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 way is unclear
