Market research Flashcards
(22 cards)
What is market research xo
process of collecting primary and secondary info and data about customers, the marketplace and activities of competitors.
What is primary research
gathers first-hand info and data that doesnt already exist for a specific purpose
What is secondary research
use of previously collected information the information used has not been gathered specifically for the business but is instead adapted for its use. Secondary research data is often more easily available and accessible at a lower cost than primary research
Examples of primary research
focus groups
questionares
interviews
surveys
Examples of secondary research
existing business documents
yellow pages
industry magazines
online desk research
Ads and disads of primary
-research only available to your business
-up to date
-can be targeted to specific needs business wants
-can be expenisve and time consuming to collect
- can have problem of bias
Ads and disads of secondary research
-inexpensive and quick
-enables cost effective analysis of several different sources
- out of date
- not specific
- quality
- not available
What is quantitative research
gathering info that can be tested from closed questions allowing collection of data that leads to objective conclusions and hypothesis that can be tested. Is in mathmatical form.
What is qualitative research
gather opnions and views from open ended questions
What are the benefits of market research
-identify opportunities and threats
- idenitify target market
-reduce risk of failure
- alternative routes to overcome problem
-researc does not gurentee success
-costly in time and money
-may be unreliable
Why is it important to understand market place
-expense of launching new product
-importance of maintaining market share
-importance un preserving profile and brand value of existing products
Name 5 reasons a business should carry out market research
-find out customer needs and wants
-suggest introduction of new products
-to gain adventage over competition and find out what they are doing
-find out how much customers are willing to pay
-aid in decision making in fast changing markets
3 reasons not to carry out market research
-unrepresentive sample from poorly constructed questionnaires
- secondary can not meet specific needs
- primary can be expensive to gather
ads and disads of quantitive
-easy to analyse
-insights into trends
-comparable to other data
-no reasons behind results
-invalid if sample size or method is carried out ineffectively
ads and disads of qualitive research
-insights into problems such as why customers are not buying
-test marketing mix (new product or promotion)
-understand customers wants and needs
expensive to collect and analyse
based on opinion and may not be representative
What is focus group
group of people asked about perceptions opions and beliefs towards product or service or advertisement
What is bias and how to avoid
something that causes data within sample to weighted to one side use random and quota sampling
What is quote sampling
segmented into groups of specific characteristics such as age or sex
not statistically representative as not random but is cheaper
What is random sampling
every member of population has equal chance of being interviewed
difficult and expensive
Benfits if large sample size
more accurate as less chance of random factors but alot more expensive and time consuming
What if sample size is too small
random factors may make results inaccurate
What is a sample
group of respondents who are selected to represent views of target market as a whole
