P3 – Describe how a selected organisation uses market research
What is Market Research?
Market Research is when information is gathered about customers’ needs and wants. For
example; a company uses market research to see what product customers would prefer within
their company as well as the wants of their customers. Thorpe Park would do a survey of
what ride people prefer out of their products. Every company would need to do market
research whether it is for a new product, or whether they want to see how a product is. Most
of the time, market research is to see what the market needs and/or wants so that a product
can be successful in the market.
What is Primary research?
Primary research is information gathered by you or your company. It is new research that has
been carried out recently to answer specific questions. Primary research is reliable and up to
date but can be expensive to do or it can be quite time consuming. Primary research is usually
carried out by large companies so the data is more reliable; such as Thorpe Park, they cannot
use secondary data as they do not want to risk the data being wrong or outdated, therefore
they use primary research methods more than secondary.
What is Internal and External Primary Research?
Internal Primary Research refers to the sources of information within the organization. External
sources are of really important in case where research needs detailed and thorough investigation.
External sources data can be divided with two categories (a) Primary data (b) Secondary data.
What is Secondary research?
Secondary research is research that is existing and not new. It is usually gathered by another
source or is data collected from a different area. Secondary research can be outdated and
unreliable which is why primary research is usually better. Secondary research can be used
by large companies but is not used as much as primary research because there are a lot of bad
sides about using secondary research. For example; if Thorpe Park were to use existing data
from 2010, it would not be accurate as it is outdated. Thorpe Park wants to maximise sales
and make the most out of their products.
What is Internal and External Primary Research?
Internal secondary data is data that the company already has but is collected by another
department in the company. Internal sources of data should always be considered as a first option
of enquiry for any investigation because they are usually the quickest, cheapest and most convenient
source of information available. External secondary data is data that is collected from a separate
source, Such as by the government or another organization. Using this method of research can reduce
the risk of decision making because the research is carried out by the company. If the research is
primary research then the risk will be a lot lower due to the research being valid and more reliable
than secondary research. Sometimes companies measure over time so that they get the most accurate
results possible. If a company carries out research for a long period of time then there is a higher
chance that the research will give better results. You are able to reduce the risk of decision making
and internal/external primary research is a good way to do this.
What is Market Research?
Market Research is when information is gathered about customers’ needs and wants. For
example; a company uses market research to see what product customers would prefer within
their company as well as the wants of their customers. Thorpe Park would do a survey of
what ride people prefer out of their products. Every company would need to do market
research whether it is for a new product, or whether they want to see how a product is. Most
of the time, market research is to see what the market needs and/or wants so that a product
can be successful in the market.
What is Primary research?
Primary research is information gathered by you or your company. It is new research that has
been carried out recently to answer specific questions. Primary research is reliable and up to
date but can be expensive to do or it can be quite time consuming. Primary research is usually
carried out by large companies so the data is more reliable; such as Thorpe Park, they cannot
use secondary data as they do not want to risk the data being wrong or outdated, therefore
they use primary research methods more than secondary.
What is Internal and External Primary Research?
Internal Primary Research refers to the sources of information within the organization. External
sources are of really important in case where research needs detailed and thorough investigation.
External sources data can be divided with two categories (a) Primary data (b) Secondary data.
What is Secondary research?
Secondary research is research that is existing and not new. It is usually gathered by another
source or is data collected from a different area. Secondary research can be outdated and
unreliable which is why primary research is usually better. Secondary research can be used
by large companies but is not used as much as primary research because there are a lot of bad
sides about using secondary research. For example; if Thorpe Park were to use existing data
from 2010, it would not be accurate as it is outdated. Thorpe Park wants to maximise sales
and make the most out of their products.
What is Internal and External Primary Research?
Internal secondary data is data that the company already has but is collected by another
department in the company. Internal sources of data should always be considered as a first option
of enquiry for any investigation because they are usually the quickest, cheapest and most convenient
source of information available. External secondary data is data that is collected from a separate
source, Such as by the government or another organization. Using this method of research can reduce
the risk of decision making because the research is carried out by the company. If the research is
primary research then the risk will be a lot lower due to the research being valid and more reliable
than secondary research. Sometimes companies measure over time so that they get the most accurate
results possible. If a company carries out research for a long period of time then there is a higher
chance that the research will give better results. You are able to reduce the risk of decision making
and internal/external primary research is a good way to do this.
