Market Research

• What is market research?


  Research carried out to identify the needs and wants of customers.
• What are the potential outcomes of conducting market research?


  • Satisfy the target market's wants.
  • Easier product creation.
  • Can be time-consuming and expensive (primary).
• What is primary data?


  Data collected for a specific purpose by the business.
• What is secondary data?


  Data that already exists and has been collected for a different purpose.
• What are examples of primary data collection methods?


  • Interviews
  • Online surveys
  • Questionnaires
  • Focus groups
  • Testing and observation
• What are examples of secondary data sources?


  • Interviews
  • Books & newspapers
  • Income statements
  • Government census data
• What are the advantages and disadvantages of primary research?


  Advantages:

  • Up to date.
  • Tailored to business needs.
  • Unique data.

  
  

  Disadvantages:

  • Time-consuming.
  • Expensive.
  • Interview bias.
• What are the advantages and disadvantages of secondary research?


  Advantages:

  • Easily available.
  • Cheap or free.
  • Quicker process.

  
  

  Disadvantages:

  • May be outdated.
  • Reliability issues.
  • Competitors have access to the same data.
• What is quantitative research focused on?


  Numerical data.
• How is quantitative data typically collected?


  Through questionnaires and surveys.
• What is qualitative research focused on?


  Opinions and attitudes.
• How is qualitative data typically collected?


  Through interviews, focus groups, and in-depth discussions.
• What are the advantages and disadvantages of interviews as a primary research method?


  Advantages:

  • Provides insights into consumer wants.
  • Allows observation of body language.

  
  

  Disadvantages:

  • Time-consuming.
  • Subject to interviewer bias.
• What are the advantages and disadvantages of online surveys?


  Advantages:

  • Less time-consuming.
  • Cheap and fast process.

  
  

  Disadvantages:

  • Limited sampling.
  • Uncertainty over validating results.
• What are the advantages and disadvantages of questionnaires?


  Advantages:

  • Ensures a representative sample.
  • Can be distributed widely.

  
  

  Disadvantages:

  • Lack of flexibility.
  • Limited response options.
• What are the advantages and disadvantages of focus groups?


  Advantages:

  • High degree of flexibility.
  • Quick and cheap.

  
  

  Disadvantages:

  • Results may be biased.
  • Difficulty controlling the discussion.
• What are the advantages and disadvantages of testing and observations?


  Advantages:

  • Provides up-to-date information.
  • Direct observation of consumers.

  
  

  Disadvantages:

  • Can be expensive.
  • Time-consuming if face-to-face.
• What are the advantages and disadvantages of internet research?


  Advantages:

  • Variety of data collection methods.
  • Quick, easy, and cheap access.

  
  

  Disadvantages:

  • Data may be outdated.
  • Reliability issues.
• What are the advantages and disadvantages of using newspapers for research?


  Advantages:

  • Valuable research tool.
  • Up-to-date information.

  
  

  Disadvantages:

  • Information may be outdated.
  • May not directly relate to the business.
• What are the advantages and disadvantages of using income statements for research?


  Advantages:

  • Measures competitive success.
  • Shows profitability.

  
  

  Disadvantages:

  • May be out of date.
  • Estimation difficulties or errors.
• What are the advantages and disadvantages of using government and census data for research?


  Advantages:

  • Based on reliable data.
  • Helps understand the market.

  
  

  Disadvantages:

  • Competitors have access to the same data.
  • May not answer specific research questions.