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Business revision :man_in_business_suit_levitating:, Quantitative data and…
Business revision :man_in_business_suit_levitating:
Purpose of Market Research.
Market research provides critical information about your market and your business landscape. It can tell you how your company is perceived by the target customers and clients you want to reach.
what are the different types of market research
Surveys
competitive analysis
Customer observation
interviews
focus groups
customer segmentation
customer satisfaction
What are the benefits of Market research?
It helps businesses strengthen their position
It minimises any investment risks
It helps to discover yours and your competitor's strengths and weaknesses.
It facilitates strategic planning.
it identifies potential threats and opportunities.
Secondary Market Research
Competitor Data
The data is collected by the competitor and not the business carrying out the research. The advantage of it is that is quick to make use of & the disadvantage of it is that is not fully suited to the research needs.
Internal Data
The data is collected from customers, sales records or other data sources. The advantage is that the data is quickly completed, because the data already exists. However the disadvantage is that doesn't fully meet the research requirements.
Government Publications
The data is collected on a large scale. The advantage is that is quick to conduct, but the disadvantage is that cost effective as collecting a similar amount of data.
Mintel Reports
The data is provided for dedicate companies that exist to just carry out research. The advantage is that it's cheaper than the cost involved in the business. And the disadvantage is that the business cost money.
Primary Market Research
Benefits of Primary Research
Primary research aims to answer questions that are relevant only to your company, allowing you to can gain valuable insight into the key issues that affect your business
Data gathered through primary research is more accurate than secondary research data.
authenticity, specific nature, and up to date information
Primary Research types
Surveys
Surveys are a cost-effective method of sampling a large group of people. They involve a series of easy to answer questions which are generally multiple choice. This allows quantitative data to be collected and analysed by the researcher.
Observations
What is an observation? A way to gather data by watching people, events, or noting physical characteristics in their natural setting. Observations can be overt (subjects know they are being observed) or covert (do not know they are being watched).
Focus Groups
A focus group is a research technique used to collect data through group interaction. The group comprises a small number of carefully selected people who discuss a given topic. Focus groups are used to identify and explore how people think and behave, and they throw light on why, what and how questions.
Interviews
Interviews allow you to find out information about facts, attitudes and opinions. the interviewee as appropriate, making up new questions as appropriate. However, interviews can be time-consuming to carry out.
Entrepreneurs Risk Taking
Potential Rewards
Financial - Could earn more money
Leadership - Could show how much of a good boss you are/
Being the boss- you wont be told what you can and can't do
Family Time - You could have some reasonable work hours.
Making A difference - You have the power to treat your employers nice, or treat them like nothing, having a chance to be fair
Potential DrawBacks
Health/Wellbeing - Running a business could cause you to be anxious and you may struggle to adjust to being your own boss.
Relationships - Your family, friends, wife ect could leave you behind because you don't have time to hang out with them or be with them.
Leadership- You could struggle because this is your first time being a boss/leader you might treat some people unfairly
If this business doesn't work out then you don't have a job to go back to. which means you would lose the money invested in the business
Characteristics for an Entrepreneurs
Entrepreneurs need:
Creativity
Innovation
Risk Taking
Communication
Confidence
Patience
Determination
Market Segmentation
Identification
Age: products aimed at particular age groups
Gender: aimed at gender, like female or male
Occupations: products aimed at specific job types
Income: aiming products at customers with a certain income
Location: business aim products/service at people in a particular area
Lifestyle: habits, hobbies and interests people make up
Quantitative data and qualitative data
Quantitative
Advantages
Provides numerical data and gives and over view
The data can be checked, making it more reliable
Data Analysis is considered to be valuable and often impressive to the reader when they look at the results
Disadvantages
Does not provide any information about the reasoning behind the data that has been collected
The data can be misleading if it is not presented clearly
Qualitative Data
Advantages
Opinions can be grouped together to understand peoples attitudes (easy to maintain consumer relationships.
a business will often use sample sizes (small) as the questioning will be more targeted
cost saving measure for business
More flexible because the format is less formal as prepared questions can lead to other questions to gain opinions views and thoughts
Disadvantages
The individuals gathering the data must be experienced as follow up questions will need to be asked depending on the responses given by the people being interviewed
Does not gather statistical information so it cannot be interpreted in the same way.
further questions may be required which would be time consuming for the business
Quantitative data means Factual information that is collected
Qualitative data means that they collect peoples opinions
Advantages and disadvantages of consumer trials
Advantages
Build costumer relationships
Valuable feedback
Gain market share
Create urgency to get your product
Opportunity for the Product to Sell Itself.
Possible drawbacks
What is a consumer trial
Consumer trials are an important part of a new product launch. Product trials and samples give consumers an opportunity to try a product with no risk before they consider it for long-term use, according to marketing consultancy Launch Engineering.
Disadvantages
always be people who try to cheat the system
You're competitors might try to use the product trial to gain insights
no guarantee the product will be used
It can be a labour-intensive process.
Costs
