Market research

• Market research is the process of gathering, analysing and processing data relevant to marketing decisions
• A market segment is a group of buyers with similar needs within the overall market
• Market share = sales of product / total market sales x 100
• Market growth = change in market size / original market size x 100
• Primary market research = gathered for the first time by yourself
• Secondary market research = uses data already gathered by someone else
• Uses of market research

  • Identify opportunity in a market
  • Weigh up different possible actions
  • Assess the effectiveness of actions that have been taken
• Secondary market research

  Pros:

  • Gathered quickly
  • Cheap
  • Provides information about large sections of a market

  Cons:

  • The data may not be exactly what the business wants
  • The data may be out of date (change occurs in markets)
• Primary market research

  • Telephone surveys
  • Questionnaires
  • Customer feedback
  • Focus groups