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Unit 1 - Market research :star: - Coggle Diagram
Unit 1 - Market research
:star:
Market research
= the collection of information relating to the marketing and consumptions of goods and services.
Primary market research
= collection of new data that does not already exist
:check: The businesses that initially collects the data will be the only organization with the access to it, The will be used to gain marketing advantages over rival firms
:red_cross: If the research method is flawed, the findings will also be flawed and it will be useless to the business
:check: Data can be collected that directly applies to the issue being researched.
:red_cross: can be expensive to collect and may take longer than secondary research
Gaining insight into consumer behaviours
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Business might be more successful if they can identify and understand patterns of consumer behaviours , this will meet customer needs
Quantify likely demand
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data will be quantitative as businesses tries to find out how much of a product a business might expect to sell in a market.
may need to recruit more staffs and different departments to ensure that the necessary resources ca be acquired.
Secondary Research
= the collection of data that is already in existence
:check: can be used before carrying out primary research , this will help to establish the most useful questions to be asked in questionnaires
:red_cross: may be expensive because data is not always in a from that a particular businesses would want as it has been collected for another purpose.
:check: relatively easy and quick to collect, especially if the sources that exist are known > helpful for small businesses
:red_cross: data may be out of date and not relevant to the business. researcher must also be aware of bias as it will create uncertainties
Methods of primary market research
Focus group & consumer panels
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focus group is where a number of customers are invited to attend a discussion organized by market researchers.
relatively cost effective of collecting information but the group may be too small
consumer panels ask customers for feedback over a period of time. This allows businesses to see how consumers react to changes in their products.
Questionnaires/surveys
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used to record the news and opinions of respondents
this will help meet customer requirements.
online survey allows businesses ti gather quick feedback from customers.
However, may not represent the whole population as some customers may not want to fill in the questionnaire
Product trials
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customers are encouraged to examine the product before it is launched fully into the market.
this helps businesses to make final adjacements to the product
this will then reduce the risk of failure.
Methods of secondary market research
Newspapers,magazines
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small businesses nay use magazines to help assess the strength of competition of a market.
Television/radio
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may provide useful data for some businesses
might be able to analyse the adverts used on television and radio to help gather information about rival products.
Social media
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provide a cost effective and in depth tool for gaining insight into customer requirements
used to analyse customer trends and can reach international customers
Sampling methods
Random sampling
= respondents are selected for interviews
at random
Benefit is that it is not biased because everyone has an equal chance of being chosen
However, it assumes all consumers equally important so it is less useful if the product is targeted at a specific segment of the market
Quota sampling
= respondents are selected in a non-random manner in the same proportion as they exist in the whole population
a benefit is that the business is only asking people who it knows the product is aimed at so you are not wasting your time or money asking people who would not buy your product.
However,if the business is not very clear on their target market they may not ask potential customers and as a result may not provide products or services to suit those customers needs.
Stratified sampling
= a method of quota sampling in which respondents are chosen at random
a benefit is that ensures a high degree of representativeness of all the layers in the population
However, it is time consuming
Database
= an organized collection of data stored electronically