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Market Research - Coggle Diagram
Market Research
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Use of ICT to Support
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Company websites can gather data on visitors to the website which can provide some information about online shoppers or browsers interests.
Social Media can also offer information on consumer attitudes to a product or service and even allow a relationship between them.
Database technology allows vast quantities of data relating to consumers to be trawled in order to identify patterns that can help to explain how consumers actually behave.
Market Segmentation
One main function of market research is to help to decide on useful ways to segment markets, splitting markets up helps to target specific groups of consumers who share similar needs and wants, enabling a firm to meet these more closely.
Market segmentation can unveil insights that allows firms to identify segments that they can fulfil profitably
Benefits include; products and services can be designed to suit specific customers, meeting customer needs precisely allows a higher price to be charged and promotional activity is easier to target.
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Limitations
There are two major reasons why market research may be unreliable: the sample size is too small, which means there is more of a chance that the respondants who do not reflect the overall views of the markets are over-represented in the sample.
They also have a sample bias, the way that respondents are selected may over-represent certain types of people who's views may skew the overall findings away from the views of the total population.