Unit 10 – Market Research.
Market research involves gathering and analysing data from the marketplace (i.e. from consumers and potential consumers) in order to provide goods and services that meet their needs. A lot of businesses use market research to collect information to help them provide a suitable and a sustainable marketing product or service to attract customers interest in order to make their business more successful.
Primary research: This is information which is collected from scratch, most companies gather primary research. It is based on their research feedback that they get from the team members research; this is a primary effort because new fresh data which has been collected is all done first hand. All members within the company are involved in collecting primary research by participating their ideas and opinions on question which the company select before handing out the data to consumers targeted. Some examples of primary market research are;
A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. A Survey is a method of sociological investigation that uses question based or statistical surveys to collect information about how people think and act. For example, a possible application of survey research to a businesscontext might involve looking at how effectivemass media is in helping form and shift public opinion. A Focus Group is a small number of people (usually between 4 and 15, but typically 8, brought together with a moderator to focus on a specific product or topic. Finally, Observational Methods are an extensive array of researchmethods used with the intention of observing consumer interactions with products and services in their natural surroundings.
Secondary research: This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry. Most of the research you gather will most likely be secondary. Some examples of Secondary research are;
A population census
A Census is Official counting of a region's or nation's people and compilation of economic, social and other data, usually for formulation of development policies. It can be useful to use the data to predict how many people may use a business. Tourism statistics are statistics of a time period of how many tourists visited a selected area. And finally, a textbook is a book (usually educational) which offers information on a selected are of information (e.g. Business) Secondary research often includes the following, Public sources, which are free and offer a lot of good information. Another source it includes is Commercial sources, this is valuable information but often cost money to get hold of such as a subscription or association fees. Finally, Education sources which is research which has been conducted in a school/college. The main sources of secondary data are reference books, government publications and company reports.
Primary and Secondary data combined can then be used to describe the current situation in the marketplace, to try to predict what will happen in the future in the marketplace, and to explain the trends that have occurred.
Quantitative research involves carrying out market research by taking a sample of the population and asking them pre-set questions via a questionnaire (normally 200+ respondents) in order to discover the likely levels of demand. There are several types of sample that can be used to generate quantitative research Cluster sampling – This is people grouped into geographical locations and then a random sample being taken of...
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