Market research is important because customers differ in terms of:
- the benefits they want
- amount they are able to or willing to pay
- media (television, newspapers, websites and magazines) they see/use
- quantities they buy
- time and place that they buy
Insights provided by effective market research:
- dimensions of the market (Size, structure, growth, trends)
- competitor strategies
- needs, wants and expectations of customers
- market segments
Research Types
Primary Research
Data collected first-hand for a specific reason or purpose
Examples
- Online surveys
- Questionnaire
- Interviews
- Testing & Observation
- Focus Groups
- Staged launches/releases
- Postal surveys
- Experiments
Advantages
- Targeted data—what you need exactly
- Verifiable accuracy
- Fresh data
- Kept private
- More detailed
Disadvantages
- Time consuming
- Requires engagement with individuals/marketing
- Needs analysis (secondary research may come with completed graphs etc)
- Specialist reports can be expensive
- Risk of survey bias
- Sampling may not be representative
Secondary Research
Data that already exists and which has been collected for a different purpose
Examples
- Government and Census data (ONS etc)
- Internet
- Books & Newspapers
- Income statements
- Competitor Websites
- Marketing Research Reports (£££)
- Trade Associations
Advantages
- Quick and easy to access
- Likely to be free
- Large datasets are available
- Good source of market insights
Disadvantages
- Can contain bias
- Might be old
- Not specific to what you need
Quantitative Research
- Focuses on numerical data
- Collected through surveys and questionnaires
- Helps companies to see what % of people think what
-
- Eg, 35% of people enjoy football
Qualitative Research
- Focuses on opinions and attitudes
- Collected through interviews, focus groups, in-depth discussions
- Helps companies to see what people really think
- Eg, students at the local school like watching football but not playing it.