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20 Cards in this Set
- Front
- Back
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The Importance of Market Research |
Customers differ in terms of: Benefits they want Amount they're willing to pay The media they see which affects reputation Quantities they buy The time and place in which they buy |
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Market Research Insights |
Dimensions of the market, such as its size and structure, which gives an idea of how to operate and set marketing objectives. Competitor strategies such as positions, USP's, etc. Customer needs, wants and expectations so the business is able to provide products customers will actually buy. Existing and potential opportunities for different market segments and possible gaps. |
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Primary Research |
Data collected first hand for a specific research purpose. |
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Main Sources of Primary Data |
Observation Postal/online surveys Telephone interviews Focus groups Face to face surveys Test marketing Experiments |
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Primary Research Benefits |
Directly focused to research objectives and can be aimed towards specific targets. Kept private from competitors and the public. More detailed insights, particularly into customer views which allows for better and more specific product development. |
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Primary Research Drawbacks |
Time consuming and costly to obtain. Risk of survey bias which would be inconsistent and give a false representation. Sampling may not be representative. |
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Secondary Research |
Data which already exists and has been collected for a different purpose. |
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Main Sources of Secondary Data |
Google - quick and free access to nearly all information. Government departments which provide detailed insights into the economy and specific industries. Trade associations which is useful to gain insight into a particular sector. Trade press and magazines which provide market insights from professionals. Competitor websites and marketing materials. Market research topics of an individual market. |
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Secondary Research Benefits |
Often free and easy to obtain, but competitors could use it also. Good source of market insights to see what's good and what's not. Quick to access and use. |
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Secondary Research Drawbacks |
Can quickly become out of date, giving a false representation. Not necessarily tailored to individual business needs. Specialist reports often expensive, but could be worth it. |
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Qualitative Research |
Based on opinions, beliefs, attitudes and intentions. Answers questions such as "why?", "would?" or "how?". Aims to understand why customers behave in a certain way or how they may respond to a new product or service. Common methods include focus groups or interviews. |
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Benefits of Qualitative Research |
Essential for important new product development and launches to ensure businesses give customers what they want. Focused on understanding customer needs, wants and expectations. Can highlight issues which need addressing such as why customers don't buy, whether prices are too high, quality issues, etc. Effective way of testing elements of the marketing mix such as new branding or promotional campaigns. |
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Drawbacks of Qualitative Research |
Expensive to collect and analyse as it requires specialist research skills. Based around opinions so carries the risk the sample isn't representative. |
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Quantitative Research |
Concerned with numerical data and addresses questions such as "how many?", "how often?". Based on larger samples so more statistically valid. Main methods include surveys. |
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Benefits of Quantitative Research |
Data relatively easy to analyse. Numerical data provides insights into relevant trends. Can be compared with data from other sources such as competitors. |
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Drawbacks of Quantitative Research |
Doesn't explain why things didn't happen, leaving a business unsure on how to resolve problems. Doesn't explain the reasons behind numerical trends. May lack reliability if sample size and method not valid. |
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Focus Groups |
A form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement, idea or packaging. Gets opinions of people and then their ideas, often during product development. Frequently used by YouGov. |
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Sampling |
The gathering of data from a sample of respondents, the results of which should be representative of the population as a whole. Random so not biased. |
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Benefits of Sampling |
Even a relatively small sample size can provide useful research insights. Sampling before making marketing decisions can reduce risks and costs. Flexible and relatively fast. |
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Drawbacks of Sampling |
If it's unrepresentative of the population, it could lead to incorrect conclusions. Risk of bias in questions and answers which could give a false representation. Less useful in market segments where customer tastes and preferences are changing frequently, as results would be too varied and short-lived. |
