Unit 3.2 Market Research Flashcards
(11 cards)
Process of Market Research (5 steps)
- Identify the purpose of the market research
- Decide on the best method to research (primary or secondary)
- Decide on the size and sample of people
- Carry the research out!
- Collect the data and analyse the results
- Produce a report
Product- Orientated business
Businesses that produce the product first, then try to find a market for it.
- Concentrated on the quality and price
Market-Orientated business
Business that conduct market research first to see what consumers want, and then produce the product to satisfy customers
- Set marketing budget
Primary Research Definition & Methods
Gathering original data requiring direct contact with consumers
- Questionnaires
- Interviews
ETC
Primary Research Advantages (3)
- Tailor made to the business individual needs
- Information is up to date
- Allows to connect with the customer on a personal level
Primary Research Disadvantages (4)
- Data collection is expensive, higher cost for the business
- Time consuming
- May be difficult to access the primary data
- Requires expertise in collecting accurate data
The need for sampling
The process of getting opinions from a number of people, chosen from a specific group, in order to find out about the whole group
Secondary Research Definition & Methods
Using information that has already been collected by others
- Sales department
- Internet
- Research reports
Secondary Research Advantages
- Inexpensive so lower costs for business
- Data is easily accessible
- Less time used collecting data
Secondary Research Disadvatages
- Out of date
- Can be unreliable
- May not be applicable to the specific research question
Factors affecting accuracy of market research data
- How carefully the sample was drawn
- Who carried out the research
- How questions were phrased in questionnaires and surveys
