market research in business
P1- Describe types of market research
Market research is the gathering of information to provide important material to identify and analyse the market need, market size and competition.
The first type of market research is primary research: these are findings that are new and are relevant to a specific question that the researcher is trying to find out, methods include:
Observation- is useful when a topic needs to be explored; there is no communication between the researcher and the people being observed e.g. how children play with a new toy. Watching different types of behaviour can be an advantage as you’re receiving first-hand information rather than asking how someone would react in specific situations, giving more accurate results.
Surveys- are used to collect data either by:
1. Face to face questionnaires and interviews, allowing a conversation with the respondent and more detailed info, also with the extra benefit of seeing their facial expressions and body language which speaks for 80% of a person communication.
2. Post, which has the ability to be sent to a wider geographical area for a cheap price, but needs to be sent only to people who would be interested in responding to it, and unfortunately has a very low response rate of 10% or lower.
3. Internet, through emails e.c.t a person can be sent a survey that is relevant to them and can be filled out whilst they are bored for example on a long journey, however there is a disadvantage to this method known as ‘survey fatigue’ where the recipient is asked to fill in too manys questionnaires.
These methods obtain information on attitudes, awareness, motivation and lifestyle, this is easy to create but respondents are low and the researcher will need at least 1000 or more before a conclusion can be made about the overall market.
Focus groups- An interview by the researcher with a small group of consumers, this is good for gaining insight into how people fell and their reaction to new products, but
Market research is the gathering of information to provide important material to identify and analyse the market need, market size and competition.
The first type of market research is primary research: these are findings that are new and are relevant to a specific question that the researcher is trying to find out, methods include:
Observation- is useful when a topic needs to be explored; there is no communication between the researcher and the people being observed e.g. how children play with a new toy. Watching different types of behaviour can be an advantage as you’re receiving first-hand information rather than asking how someone would react in specific situations, giving more accurate results.
Surveys- are used to collect data either by:
1. Face to face questionnaires and interviews, allowing a conversation with the respondent and more detailed info, also with the extra benefit of seeing their facial expressions and body language which speaks for 80% of a person communication.
2. Post, which has the ability to be sent to a wider geographical area for a cheap price, but needs to be sent only to people who would be interested in responding to it, and unfortunately has a very low response rate of 10% or lower.
3. Internet, through emails e.c.t a person can be sent a survey that is relevant to them and can be filled out whilst they are bored for example on a long journey, however there is a disadvantage to this method known as ‘survey fatigue’ where the recipient is asked to fill in too manys questionnaires.
These methods obtain information on attitudes, awareness, motivation and lifestyle, this is easy to create but respondents are low and the researcher will need at least 1000 or more before a conclusion can be made about the overall market.
Focus groups- An interview by the researcher with a small group of consumers, this is good for gaining insight into how people fell and their reaction to new products, but