Unit 11: Market research
A product-orientated is a business that care about the products first and then the business will try to find a market for it.
A market-orientated is a business that care about what the customers/consumers want before developing the products.
A marketing budget is how much money the business spends for the business' plans.
A market-orientated is a business that care about what the customers/consumers want before developing the products.
A marketing budget is how much money the business spends for the business' plans.
Why is market research needed?
If there is not a very big market for the product, the business can waste the money into the product that may not people want to buy.
Market research is the process of finding and gaining the information about a market
It is used to try to find out the answers to these questions:
Market research is the process of finding and gaining the information about a market
It is used to try to find out the answers to these questions:
- What kinds of products the customers like?
- Will they buy the products?
- What is the price?
- Does the price too high or too low?
- What type of customer?
Types of information
Quantitative information - answers the questions about the number of something
Qualitative information - answers the questions where the opinion or comment is necessary
Information can be research in two ways: Primary and Secondary research
Primary research is when we find the information by ourselves
Secondary research is when we find the information through somebody else.
Types of Primary research
Questionnaire is a set of questions that is used to collect data for the market research
Advantages:
Advantages:
- Detailed qualitative information can be gained
- Collect the customers' opinions about the products and services
- They can be carried out online => cheaper and easier
- They can be linked to prize to make people answer the questions
- If the question isn't specific, the answer won't be accurate
- Take a lot of time and money
Interview is when the interviewer has the questions for the interviewee
Advantages:
Advantages:
- The interviewer can explain the questions for the interviewee
- Detailed information about what interviewees like or dislike
- Sometimes the interviewer won't let the interviewees answer what they think
- Time-consuming and expensive
Sample is a group of people who are selected and have the respond to a market research. (expensive)
There is two kinds of sample:
Random sample is when people are selected without preparing to find information for market research
There is two kinds of sample:
Random sample is when people are selected without preparing to find information for market research
- Advantages: everyone will have chance to be selected
- Disadvantages: not everyone will be a consumer
- Advantages: create an exact sample and it is quicker
- Disadvantages: limits in the decisions and doesn't allow many variety
Focus group is a group of people who are representative of the target market
- Advantages: Detailed information about consumers' opinions
- Disadvantages: Time-consuming, expensive and biased
Observation can take in form of: Recording, Watching or Audits.
- Advantages: Quite inexpensive way
- Disadvantages: Just gives basic number and doesn't give the reason why consumers choose this
Types of Secondary research
Internal sources of information include:
- Sales department sales records, pricing data, customer records, sales reports
- Opinions of distribution and public relations personnel
- Finance department
- Customer Service department
External sources of information include:
- Government
- Newspaper
- Internet
- Market research Company