what is market research
it is the systematic gathering and recording of data about a product and its target market
why can research be used to improve the effectiveness of an organisation
- it can help identify the specifics of the market
- it can help assess the strengths of competitors
- gap in the market
what are different methods of sampling
Quota and random sampling
what is quota sampling
- it is used if the average consumer profile is known
- cheaper than random sampling
- results may not rep the target market as the interviewer bias impacts who is picked
what is random sampling
- people are picked randomly from a list
- simple system
- expensive
- time consuming
- if the person is unavailable the interviewer must contact them again and again
what is desk research
it involves re using previous info for another purpose and is completed by a researcher without direct contact with respondents
why is desk research effective
it gives a variety of information and allows a greater understanding of PESTEC factors. info should be instantly available
what are the drawbacks of desk research
- it may be available to rivals so does not bring a competitive advantage
- information may not be good quality
what does desk research involve
research of secondary info:
- websites give a great deal of info about the rest of the industry
- stats like gov figures can help make decisions on target market
- previous information
what is field research
it is carried out by a researcher to obtain first hand information which often involves direct contact
what are examples of field research
personal interview telephone survey postal survey group discussion customer audit epos hall test observation test marketing
what is a personal interview
face to face interview
what are the advantages of a personal interview
- 2 way communication
- misunderstanding dealt with quick
- skilled researcher
what are the disadvantages of a personal interview
- costly
- time consuming
- unpopular
what is a telephone survey
researcher phones people to ask them questions
what are the advantages of a telephone interview
- pretty inexpensive
- immediate response
- clarification can be given
what are the disadvantages of a telephone interview
- straight forward questions needed
- participants hostile if privacy is invaded
what is a postal survey
researcher posts a questionaire to selected houses which are returned
what are the advantages of a postal survey
- cheap as no interviewer needed
- no interviewer bias
- easy to segment market via post codes
what are the disadvantages of a postal survey
- time consuming to make questionnaire
- simple questions only
- low response rate
what is a group discussion
involves meeting between selected people led by an experienced person who encourages open discussion
what are the advantages of group discussion
- more detailed in depth info
- stimulates discussion
- get opinions and ideas
what are the disadvantages of group discussions
- analysis harder is widely different views
- dominant members can sway discussion
- cost of bringing several respondents
what is customer audit
continuous research by market research org on buying habits of a specific group
what are the advantages of customer audit
- used to monitor specific segments
- possible to identify trends
- respondents get better at expressing opinions
what are the disadvantages of customer audit
- incentives may be needed to encourage participation
- difficult to keep the same panel for a long time
what is EPOS
electronic point of sale:
used by retailers to record data about shopping habits of consumers when a card is used
what are the advantages of EPOS
- very accurate consumer profiles can be set up
- can gail customer loyalty as they feel valued
what are the disadvantages EPOS
- expensive set up and to monitor the system
- know what consumers and doing but not why
what is hall testing
inviting customers to look at and try a product then give their reaction
what are the advantages of a hall test
- simple to organise
- respondents come to you
- immediate response
what are the disadvantages of a hall test
- opinion is harder to analyse
- respondents might not give a true opinion to be complimentary
what is an observation
the researcher watched and records particular occurrences or habits
what are the advantages of an observation
- accurate quantitive info is gathered
- large amount of surveys at once
what are the disadvantages of an observation
- no questions asked
- can be expensive to set up
what is test marketing
monitors consumer reaction by launching a product to a certain region then launch elsewhere based on results
what are the advantages of test marketing
- changes can be made before launch
- more chance of long term success
- expensive launch
what are the disadvantages of test marketing
- consumers may have regional bias so doesn’t reflect target market
- poor marketing could result in failed launch
