Market Research
P1
Market Research is the recording and analysis of data on issues with goods and services. It is
systematic and carried out carefully in an organised way which is then recorded Into computer
records. It is then used to identify trends and issues such as what price to charge, the best way to
advertise goods and services and where to sell them.
The methods of market research are primary research and secondary research. Primary research is
an information collected by an organisation from their own efforts. Primary research is usually used
to collect new information for a specific purpose. Secondary research is information collected by an
organisation using existing information that is already produced.
There are many examples of market research however, the main types are
Surveys
A survey is the most common method of primary research used to gather information. The benefit of
a survey is that it is easy to develop and not as time consuming compared to some of the other
methods of market research. It is also cost effective, but the cost also depends on the survey
equipment’s. This particular method of market research is effective as businesses can compare the
data with different factors, but it is also not as accurate as the response of the people who take part
of the survey may provide false answers especially if they don’t feel comfortable being honest with
their answers which could impact the business as they will not get the accurate answers from
respondents which is time consuming.
E-Marketing Research
Over the last ten years, this method of market research has increased in importance and frequency
as more people have access to technology and spend hours on the internet. This is an easy method
of market research to carry out. E-market research refers to the way in which goods and services is
advertised with the use of the internet. E-marketing research enables to customers to shop globally
which increases the awareness of products and services for businesses. The disadvantage of this
method is security and privacy issues which is because some customers may not trust the ideology
of shopping online.
Focus groups
A Focus groups is a small group of potential customers who are brought together to discuss about a
specific product or issue. This method saves time, money and is also measurable.
Piloting
This type of market research method involves testing a new product or service before launching it.
This is used to ensure that the product will be successful when it is launched.
Panels
A panel is a type pf survey with the same group conducted over a long period of time as they are
able to analyse changes in buying patterns as well as information on the common items purchased
by consumers, which of the items are becoming more or less popular, the response from consumers
on particular factors, and how consumers respond to offers and advertisement. The negative factor
oof the use of panels is that the organisation, need to ensure that the members of the panel
, maintain their behaviour so that they can continue recording accurately and ensuring that the
people who wish to discontinue can be replaced. However, a panel is expensive as the business will
have to pay for the discussion on ideas.
Internal Sources
Internal sources is information that is available to businesses about their market. Examples of
Internal sources are
EPOS (Electronic Point of Sale)
This is information extracted off barcodes on items for sale. Businesses can collect information such
as stock and sales made which is recorded into in the computer system when an item is scanned.
The business then has a record of the number of sales, the changes in the level of sales and where
the sales are made (geographic store location).
Data Records
Organizations hold data records in a database format. This includes data from their sales record and
invoices that is sent to customers. If the Data is carefully analysed, the organisation will be able to
view who the existing customers of their organisation are, where they live, the amount they spend,
and how often they make purchases.
Website Monitoring
Most organisations use cookies to monitor their website. A cookie is a file that provides the
organisation information such as who has browsed their website. It also provides information such
as how long people browsed for and the requested pages. Cookies allows you to keep records of
potential customers that have viewed your website and the goods and services to offer. Cookies give
good source of information to the organisation as the organisation is able to identify customers
interests and behaviours. It is crucial for organisations to keep a record of browsers which will show
them who has viewed their website.
E-Transaction
This is electronic transaction that is made by the people who make purchase. This provides
information such as who bought your item, how much they spent and how frequently they purchase
something. This also gives the business the ability to make offers to customers and suggest them
goods and services based on their purchase history. Furthermore, businesses can retrieve customers
personal detail such as their email address so that they can communicate with them.
Sales Personnel
This is the knowledge that the sales department has on customers buying behaviour. They will
usually have knowledge on the most popular items to the least popular items.
Delphi Technique
This is also an example of an internal source. This method predicts the futures consumers spending
patterns. It will also give suggestions on the future possibilities. Panels or expertise are used as they
are knowledgeable and experienced enough to provide their views and opinions. This method is
different to a focus group as panels do not discuss their views and share their opinions together so
P1
Market Research is the recording and analysis of data on issues with goods and services. It is
systematic and carried out carefully in an organised way which is then recorded Into computer
records. It is then used to identify trends and issues such as what price to charge, the best way to
advertise goods and services and where to sell them.
The methods of market research are primary research and secondary research. Primary research is
an information collected by an organisation from their own efforts. Primary research is usually used
to collect new information for a specific purpose. Secondary research is information collected by an
organisation using existing information that is already produced.
There are many examples of market research however, the main types are
Surveys
A survey is the most common method of primary research used to gather information. The benefit of
a survey is that it is easy to develop and not as time consuming compared to some of the other
methods of market research. It is also cost effective, but the cost also depends on the survey
equipment’s. This particular method of market research is effective as businesses can compare the
data with different factors, but it is also not as accurate as the response of the people who take part
of the survey may provide false answers especially if they don’t feel comfortable being honest with
their answers which could impact the business as they will not get the accurate answers from
respondents which is time consuming.
E-Marketing Research
Over the last ten years, this method of market research has increased in importance and frequency
as more people have access to technology and spend hours on the internet. This is an easy method
of market research to carry out. E-market research refers to the way in which goods and services is
advertised with the use of the internet. E-marketing research enables to customers to shop globally
which increases the awareness of products and services for businesses. The disadvantage of this
method is security and privacy issues which is because some customers may not trust the ideology
of shopping online.
Focus groups
A Focus groups is a small group of potential customers who are brought together to discuss about a
specific product or issue. This method saves time, money and is also measurable.
Piloting
This type of market research method involves testing a new product or service before launching it.
This is used to ensure that the product will be successful when it is launched.
Panels
A panel is a type pf survey with the same group conducted over a long period of time as they are
able to analyse changes in buying patterns as well as information on the common items purchased
by consumers, which of the items are becoming more or less popular, the response from consumers
on particular factors, and how consumers respond to offers and advertisement. The negative factor
oof the use of panels is that the organisation, need to ensure that the members of the panel
, maintain their behaviour so that they can continue recording accurately and ensuring that the
people who wish to discontinue can be replaced. However, a panel is expensive as the business will
have to pay for the discussion on ideas.
Internal Sources
Internal sources is information that is available to businesses about their market. Examples of
Internal sources are
EPOS (Electronic Point of Sale)
This is information extracted off barcodes on items for sale. Businesses can collect information such
as stock and sales made which is recorded into in the computer system when an item is scanned.
The business then has a record of the number of sales, the changes in the level of sales and where
the sales are made (geographic store location).
Data Records
Organizations hold data records in a database format. This includes data from their sales record and
invoices that is sent to customers. If the Data is carefully analysed, the organisation will be able to
view who the existing customers of their organisation are, where they live, the amount they spend,
and how often they make purchases.
Website Monitoring
Most organisations use cookies to monitor their website. A cookie is a file that provides the
organisation information such as who has browsed their website. It also provides information such
as how long people browsed for and the requested pages. Cookies allows you to keep records of
potential customers that have viewed your website and the goods and services to offer. Cookies give
good source of information to the organisation as the organisation is able to identify customers
interests and behaviours. It is crucial for organisations to keep a record of browsers which will show
them who has viewed their website.
E-Transaction
This is electronic transaction that is made by the people who make purchase. This provides
information such as who bought your item, how much they spent and how frequently they purchase
something. This also gives the business the ability to make offers to customers and suggest them
goods and services based on their purchase history. Furthermore, businesses can retrieve customers
personal detail such as their email address so that they can communicate with them.
Sales Personnel
This is the knowledge that the sales department has on customers buying behaviour. They will
usually have knowledge on the most popular items to the least popular items.
Delphi Technique
This is also an example of an internal source. This method predicts the futures consumers spending
patterns. It will also give suggestions on the future possibilities. Panels or expertise are used as they
are knowledgeable and experienced enough to provide their views and opinions. This method is
different to a focus group as panels do not discuss their views and share their opinions together so
