Ch20: Marketing + Market Research

• Marketing - everything involved in the process of getting goods or services from the producer to the consumer at a profit.

  Market - the place where goods and services are bought and sold

  Target Market - the precise description of the people who are most likely to purchase the good or service

  Niche Market - a specialised section of the overall market aimed toward a small group of people
• Market Research - the gathering, recording and analysing of information about the market and the product so that the business can look at the information and make decisions based on it.

  Advantages of Market Research:

  • Informs the business of the consumers and the competition
  • Reduces the risk of failure, as the business can specifically cater to the target market
• Primary Research (Field Research):

  • Involves physically going out into the market and contacting consumers and the market

  + Information is more detailed and accurate

  - More expensive and time consuming to gather information

  Examples: Surveys, test marketing, questionnaires, panels

  • Test marketing involves giving an unreleased product to a group of people to test it
  • Panels involve online consumers who agree to have their behaviour on the internet tracked for market research
• Secondary Research (Desk Research):

  • Analysing information that is already gathered

  + Cheap, quick and easy to gather

  - Can be out of date or biased

  Examples: reports, past financial statements, newspaper articles, government agencies