It refers to the collection, analysis and interpretation of data about a market to satisfy customers’ needs and wants more easily.
Importance of market research
Identify the customer’s needs and wants
Identify the target market
Identify new features that attract customers
Methods of Market Research
Qualitative information– It refers to open-ended questions based on the opinions of respondents.
Quantitative information– It refers to close questions based on numerical data.
Types of Market Research
Primary research– It is defined as the collection, analysis, and interpretation of original data about a market.
Advantages
Disadvantages
up-to-date and personalised data
Time consuming
Proprietary rights
Costly
2. Secondary research– it refers to the collection, analysis, and interpretation of already available data about a market in order to carry out market research.
Advantages
Disadvantages
Convenience
Outdated information
Affordable
Not specific
Types of primary research
Questionnaire– It is a set of questions to be answered as a means of collecting data about a market research.
Advantages
Disadvantages
Large amounts of information can be collected in a short time period and in a cost-effective way
Collecting and analysing can be time-consuming
The results can be quickly and easily quantified by the researcher.
There is no way to tell how truthful the respondents are.
2. Online Surveys– It is a survey that takes place on the internet by posting questions to people to answer.
Advantages
Disadvantages
Increase response rates
Lack of internet accessibility
3. Interviews– It occurs when the interviewer asks questions to the interviewees about a particular topic.
Advantages
Disadvantages
Detailed information about the risk
Costly and time
4. Focus groups– It refers to a group of 10 or fewer volunteers having the same characteristics who gather to discuss a particular product or idea.
Advantages
Disadvantages
Time-saving opportunity
Costly
Types of secondary research
Internal source– available in the business’s own records, such as (a) sales department, (b) Finance department, (c) Customer service.
External source– available outside the business, such as (a) GVT states, (b) Newspapers, (c) Online stores, (d) M. R agencies.
Product-oriented business
Market-oriented business
The objective is to focus on the product itself rather than what the market wants.
The objective is to focus on the custome’s needs and wants accordingly to the market.
Types of selection to respond to market research
Sample
Random Sample
Quote Sample
A group of people selected to respond to market research to represent the whole population.
People are selected randomly to respond to market research.
People with a particular character are selected to respond to market research.