Essay about Btec Bussiness Unit 10 P1

959 Words Dec 30th, 2012 4 Pages
P1 M1 describe types of market research
Market research is the method of gathering and analyzing information about customers, competitors and the market. Market research is used when companies want to focus on things like market trends, customer habits and lifestyle, what price customers will pay for a product and what competition exists. This type of research assists companies build an idea on how competitive the market is also business owners can price their products efficiently with the understanding of the current market research.
Market research can provide companies with vital information which allows them to make choices based on what the customer wants. It can allow businesses to predict what might happen in the future of a
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Advantages * Surveys are typically cheaper to create and collect responses. As respondents usually select an answer from a list of selections analyzing data is far easier * Results can be made to be critical of a population by targeting a select group of people
Disadvantages
A survey takes time to create, questionnaires must be well thought out and this can be expensive. Things which need to be considered when creating a questionnaire include: * What is the goal of the questionnaire? * Are the questions clear-cut? * How many people to question? * Who to question?
Observations
Observations involve watching customer’s behaviour. This can include observing how a customer responds to packaging, how long they take to make a decision or even how they navigate a shop.
Advantages
* Observations are cheap to conduct and setup * The information collected can be used to make a product more attractive to consumers by simply altering the packaging and placement in a store.
Disadvantages
Whilst observations can inform a business of what a customer does it cannot explain why?
Secondary research
Secondary research is research which involves collecting information from already published and gathered data. This data is called

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