Market research

• Market research involves gathering, presenting, and analyzing information about the marketing and consumption of goods and services
• Market research data can be used to:

  • Identify and anticipate consumer needs and wants
  • Qualify likely demand
  • Gain insight into consumer behavior
• Primary research involves collecting primary data or from the original source of information
• Methods of primary research include:

  • Questionnaires / Surveys
  • Focus groups or consumer panels
  • Face-to-face / Telephone interviews
  • Product trials and test marketing
• Advantages of primary research:

  • Data can be collected directly from customers for the specific purpose
  • The business that initially collects the data will be the only organization with access to it, gaining marketing advantages over rival firms
• Disadvantages of primary research:

  • It can be expensive to collect and may take longer than desk research
  • The sample taken may not represent the views of all the population
• Secondary research involves the collection of secondary data, which is information that already exists in some form
• Methods of secondary research include:

  • Websites
  • Social media
  • Newspaper or magazine
  • Television
  • Reports
• Advantages of secondary research:

  • It is relatively easy, cheaper, and quick to collect
  • Several sources can be used
• Disadvantages of secondary research:

  • Data is not always in a form that a particular business would want because it has been collected for another purpose
  • Data may be out of date
  • Some researchers must be aware of bias
• Qualitative research involves the collection of data about attitudes, beliefs, and opinions
• Quantitative research involves the collection of data that can be measured in numbers or figures
• Sampling methods:

  • Random sampling: provides each group member an equal chance of being chosen
  • Quota sampling: involves segmenting the target population into groups with specific characteristics
  • Stratified sampling: the sample is divided into segments or strata based on previous knowledge about how the population is divided up