Flashcards in Chapter 15 (market research) Deck (25):
What is Market research?
Market research is the process of collecting, recording and analysing data about the customers, competitors and the market
why is market research important to the business?
1 It helps reduce the risks associated with new product launches
2 It assists predicting future demand changes
3 It helps explain patterns in sales of existing products and market trends
4 It helps to assess the most favoured designs, flavours, styles, promotions and packages for a product
what are some of the Management problem that could be identified?
1 What size is the potential market for this business?
2 Why are our sales falling?
3 How can we break into the market in another country?
4 How can we most effectively meet the challenge of new competitors?
5 What customer groups buy our products and which groups tend not to buy them?
examples Research objectives?
1 How many people are likely to buy our products in country X?
2 If the price of good Y is reduced, how much will this increase sales volume?
3 If we advertise this product on television, what will be the likely impact on sales volume and market share?
4 Which new product idea, A or B, is likely to generate more sales?
5 What would be the impact of new packaging on sales of our product?
6 Why are consumer complaints about our products increasing?
what is Primary research
Primary research is the collection of first-hand data that is directly related to a firm’s needs
what is Secondary research
Secondary research is the collection of data from second-hand sources
Sources of secondary data?
1 Government publications
2 Local libraries and local government offices
3 Trade organisations
4 Market intelligence reports
5 Newspaper reports and specialist publications
6 Internal company reports
7 The internet
Secondary research Advantages
1 Often obtained very cheaply – apart from the purchase of market intelligence reports
2 Obtainable quickly without the need to devise complicated data-gathering methods
Secondary research Disadvantages
1 May not be updated frequently and may therefore be out-of-date
2 might not be available for completely new product developments
what can primary research be divided into?
1 Qualitative research
2 Quantitative research
what is Qualitative research
Qualitative research is research into the in-depth motivations behind consumer buying behaviour or opinions
what is Quantitative research
Quantitative research is research that leads to numerical results that can be statistically analysed
Qualitative research techniques : Focus groups
Focus groups – a focus group is a group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging
Quantitative research techniques: Observing and recording
Observing and recording - Using this approach, market researchers observe and record how consumers behave
Qualitative research techniques: Test marketing
This can take place after a decision has been made to produce a limited quantity of a new product but before a full-scale, national launch is made
Qualitative research techniques:
These involve directly asking consumers or potential consumers for their opinions and preferences. They can be used to obtain both qualitative and quantitative research.
what is a Sample size?
A sample is the group of people taking part in a market research survey selected to be representative of the overall target market
what are some Sampling methods?
what is Random sampling
Random sampling occurs when every member of the target population has an equal chance of being selected
what is Stratified sampling
Stratified sampling draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number of each stratum
What is Quota sampling ?
Quota sampling occurs when the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum
What are the main reasons behind primary research not being accurate?
Other forms of bias
what is Sampling bias?
results from a sample may be different from those that would have been obtained if the entire population had been questioned
What is Questionnaire bias?
this may occur when questions tend to lead respondents towards one particular answer