1. Market Research

2. Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales. Larger businesses will dedicate specific staff and departments for the purpose of marketing.

3. Why? A business might carry out marketing research to:
Find data and information that help a business understand what customers want now or in the future.
Find out whether current products are satisfying customers.
Test new products by asking potential customers to try out the product.
Assess the results of its promotional strategy – e.g. test the effectiveness of an advertising campaign.
Understand the activities and strategies of competitors.

4. Market research terminology
Primary Sources
Market Testing
Secondary Research
Secondary Sources
Questionnaire
Loyalty Cards
Survey
Sample
Population

5. Field Research
Going out collecting information directly from the public through
Surveys
Where a sample of the public is questioned
Observation
Where peoples behaviour is recorded to see how they behave and act
Consumer Panels
People are brought together to sample and discuss a product
Testing
Where a new product is tried out to see how well it sells

6. Survey Samples Random – Chosen by chance, ie every 10th person
Quota – should produce a representation of the group being surveyed ie 50% boys 50% girls
Target – specify which group you would like to survey

7. Market Research Primary Research e.g. Secondary Research Advantages
Disadvantages

8. Advantages
Up to date.
Specific to the purpose – asks the questions the business wants answers to.
Collects data which no other business will have access to (the results are confidential).
In the case of online surveys and telephone interviews, the data can be obtained quite quickly

9. Disadvantages
Can be difficult to collect and/or take a long time to collect.
Is expensive to collect.
May provide mis-leading results if the sample is not large enough or chosen with care; or if the questionnaire questions are not worded properly.