The Purpose and Methods of Market Research

• What are the two categories of market research?

  Primary research and secondary research
• What is primary research?

  • Collecting new data directly from customers
  • Provides specific, up-to-date information
  • Relevant to business objectives
• What are the methods of primary research?

  Surveys, interviews, focus groups, product testing
• How do surveys and questionnaires collect data?

  By gathering feedback from many respondents
• What is the purpose of one-on-one interviews in primary research?

  To gain in-depth insights into customer opinions
• What do focus groups provide in market research?

  Qualitative insights into customer perceptions
• What is the purpose of product testing in primary research?

  To gather feedback on product performance
• What are the advantages of primary research?

  • Provides specific data for business needs
  • Identifies emerging customer trends
• What are the disadvantages of primary research?

  • Can be expensive and time-consuming
  • Requires skilled researchers for effective studies
• What is secondary research?

  • Analyzing existing data collected by others
  • Includes industry reports, government statistics, competitor information
• What are the advantages of secondary research?

  • Less costly and quicker to access
  • Provides a broad overview of market conditions
• What are the disadvantages of secondary research?

  • May not be specific to business needs
  • Data may be outdated or less relevant
• How is market research classified based on data type?

  • Quantitative Research: numerical data
  • Qualitative Research: non-numerical insights
• What does quantitative research focus on?

  Numerical data like sales figures
• What does qualitative research provide?

  Deeper understanding of customer motivations
• How do businesses use market research for product development?

  • Helps create products meeting customer needs
  • Adjusts designs based on customer feedback
• How do businesses use market research for pricing strategies?

  • Analyzes competitors and customer willingness
  • Sets competitive and profitable prices
• How do businesses use market research for marketing and advertising?

  • Guides effective marketing channels
  • Crafts messages that resonate with target audience
• How do businesses use market research for market entry decisions?

  • Evaluates market conditions and potential demand
  • Considers cultural factors for expansion
• What are some challenges in market research?

  • High costs of large-scale studies
  • Data reliability and changing market conditions
  • Interpreting results accurately
• What is a challenge related to data reliability in market research?

  Poorly designed methods may produce biased data
• What can happen if businesses misinterpret customer feedback?

  They may invest in unimportant features
• How has Coca-Cola successfully used market research?

  • Conducts taste tests for customer preferences
  • Tailors advertising to local traditions
  • Analyzes changes in consumption habits
• What are the benefits and challenges of primary research?

  Benefits:

  • Specific, up-to-date data

  Challenges:

  • Time-consuming and costly
• What are the benefits and challenges of secondary research?

  Benefits:

  • Quick and affordable access

  Challenges:

  • May not be directly relevant or current
• What are the benefits and challenges of quantitative research?

  Benefits:

  • Useful for measuring trends

  Challenges:

  • Lacks depth and context
• What are the benefits and challenges of qualitative research?

  Benefits:

  • Provides deep insights into motivations

  Challenges:

  • Harder to analyze and quantify
• Why is market research vital for businesses?

  • Understands customers, competitors, and trends
  • Informs decisions to reduce risks and improve performance
• What challenges must businesses navigate in market research?

  • Data reliability
  • Costs
  • Changing market conditions