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market research (why conduct market research (to see if there is a gap in…
market research
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marketing orientated: means the business reacts to what customers want. information is gathered about customers needs and wants rather than what the business thinks is right for the customer
product orientated: means the business develops products based on what it is good at making or doing, rather than what the customer wants.
quantitative research - based on larger samples and is therefore more statistically valid. research is concerned with data and addresses questions such as "how many?"
qualitative research - is based on opinions, attitudes, beliefs and intentions. this kind of research deals with questions such as "why?" / "how?"
sampling - a business cannot ask every question in primary data they must ask the important and relevant questions.
large sample size data tends to be time-consuming but very accurate vice versa for smaller sample size of data
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advantages + disadvantages of market research:advantages:
- can be tailored to meed specific needs of the business
- it is more likely to be up-to-date
- usually cheaper to obtain
- may have been carried out by professionals
disadvantages:
- can be costly and time-consuming to carry out
- entrepreneur may lack the skills to carry out research thoroughly
- may be out of date
- competitors have access to the information, therefore it is unlikely to give them a competitive advantage
website:
most businesses now have websites which automatically generate customer questionnaires. they can be used to target all customers through their home page or a particular focus group. it can be a great way to get free research, however there are many negatives. it could lead to bias results as people don't answer correctly in an aim to get it done quickly or they particularly like the product / service, setting up a data collection can use value man hours, who will respond to questions raised
social media:
can help create a bond between consumers and it can lead to better market research findings. social media can provide a way to gain a fuller understanding or what customers really love / like about a brand or product range and in turn this can help companies gain a full understanding of the market they are serving
databases:
provide businesses with a great range of information.