Market Research Flashcards
What is market research?
Market research is a systematic process of gathering, analysing, and interpreting information about the market in which a business operates. Market research provides data about customers’ preferences, market trends, and competitors. Data gathered may be quantitative or qualitative. Both data types are valuable for businesses to understand their target market and make informed decisions.
What are the benefits of market research?
-Helps businesses stay informed and responsive to changes in the market
-Helps businesses identify untapped market segments, eme trends and potential gaps in the market
-Helps businesses evaluate the effectiveness of their marketing campaigns, advertising messages, and promotional activities
-Allows businesses to base their strategies and actions on reliable information and data-driven insights, leading to more effective and successful outcomes
What is primary (field) research?
Primary or field research involves collecting first hand data directly from the target market or specific participants. It is conducted by the business itself or through a research agency
What are examples of primary research?
-Surveys (Collecting data through structured questionnaires or online surveys)
-Interviews (Engaging participants in one-on-one or group discussions to gather qualitative data)
-Focus Groups (Bringing together a small group of participants to discuss specific topics or products and to share their opinions, experiences, and feedback)
-Observations (Systematically observing and recording participants’ behaviours or interactions in real-life settings)
What are the advantages of primary research?
-It gathers data that is targeted and specific, directly relevant to the businesses needs
-The business has full control over the data collection, ensuring the reliability and quality of the data
-It provides up to date information and it takes data directly from the target market
-It can gather in depth insights into customer behaviour, opinions and motivations
What are the disadvantages of primary research?
-It can be time consuming and resource intensive, it requires significant time and effort
-It can be costly, compared with secondary research especially when conducted on a large scale
-It is often focused on specific or narrow aspects of the market, which means it may not provide a comprehensive view of the entire market or customer behaviour
What is secondary (desk) research?
Secondary research refers to the process of gathering and analysing existing data and information that has been previously collected by someone else for a different purpose
What are some examples of secondary research?
-Published reports and studies
-Government publications
-Company annual reports
-Onlines databases and libraries
-News and media sources
-Social media and online forums
What are the advantages of using secondary research?
-Businesses can access existing data and information saving time and resources compared to primary research
-It provides access to a wide range of data from various sources, businesses don’t need to start from scratch
-It often offers historical data, enabling businesses to analyse trends and changes over time
-Compared with primary research, secondary research often involves larger sample sizes, which can enhance the validity and reliability of the findings allowing the business to make more accurate assessments
What are the disadvantages with secondary research?
-The data obtained through secondary research may not be tailored specifically to the business’s needs, and so its relevance and usefulness may vary
-Since it relies on existing data collected by others, businesses have limited control over the data collection process. This may result in potential biases, inconsistencies, or gaps in the available information
-Depending on the sources used, the data may not be up-to-date or may lack comprehensive coverage, consumer behaviours may have changed since
