4.4.1 Market Research
Why and how do organisations
Methods of Primary Market Research: Methods of Secondary Market Research:
carry out market research?
• Surveys • Market Analysis Reports
• market research - gathering
• attempt to gain data from large numbers of • advantages
information, gaining a better
respondents in a short time frame • detailed information about every aspect of
understanding of customers, a market
competitors and markets, to aid • suited for gathering quantitative data
• forms include online surveys, surveys by • may be invaluable for gaining an overview
marketing decisions. Areas of focus
phone, as well as face-to-face of a new market
for market research include: price,
questionnaires • disadvantages
product, promotion and place
• advantages • the cost may be too much for smaller
• market orientated - likely to companies
base their strategies on the • fast to design
• large amounts of quantitive data can be • could be outdated unless recently
results of their market research
gathered published
• product orientated - new
• cost-effective • little competitive advantage can be gained
products or prototypes tested on as competitors have the option to
potential customers to gain • can bring about more truthful answers if
anonymous purchase the same report
responses before it is released
• disadvantages • Academic Journals
onto the market
• respondents may not take the research • advantages
• test market - a limited launch of
seriously • contain the latest contemporary academic
a new product for a limited time ideas
in a specific area. If successful, • limited use for qualitative research
• possibility of researcher bias • information is likely to be reliable
the products will be released on
• could have a rigid frame and not give the • potentially useful when planning corporate
a national scale.
opportunity to give opportunities to share strategy
• Price-based research
views • disadvantages
• in competitive markets, new
• Interviews • could be of limited use for many day-to-
companies may be forced to use day business decisions
a competitive pricing strategy by • can gain large amounts of qualitative data
• allow for follow up questions and • a subscription fee is typically required
finding out the pricing strategies
clarification • Government Publications
of competitors
• can be transcribed to be referred to at a • such as the OFT (Office for National
• Promotion-based research Statistics)
• important to know which media later date
• take a large amount of time to complete • advantages
their target market accesses as
• interviewees may need to be offered • normally reliable data
money will be wasted if the target
financial incentive • the only way to access some economic
market do not see the marketing and demographic data
message • advantages
• qualitative data • most data is free
• potential customers may be used
• gaining additional information • disadvantages
to test reactions to promotional
• useful for gathering expert opinion • the quality of the data may depend upon
campaigns by being interviewed the wealth of the country producing it
as a group (focus group) • disadvantages
• takes a large amount of time to arrange • Media Articles
• Place-based research
• fee for participation • advantages
• selecting the right channel of
• possibility of researcher bias • up-to-the-minute information available
distribution can be the difference
• expensive • media sites have to searchable databases
between success and failure
• Focus Groups • some sites are free to access
• market analysis reports can
• an interview conducted with a group of • disadvantages
provide information about the
individuals usually with similar • many newspapers and most magazines
effectiveness of different
characteristics require a subscription
channels of distribution
• advantages • many newspapers have a political bias
• large amounts of qualitative data can be
gathered
• conversation can flow freely rather than
being responses to fixed questions Primary vs Secondary:
Carrying out Market Research: • individuals have the opportunity to ask
questions • Primary
• Primary market research • researchers can seek clarification • advantages
• leads to the creation of new • potential changes to marketing mix can • direct information
information be pre-tested on members of the target • can discover reasons for purchases being
• aims to answer a specific market made
research question • disadvantages • unique information gathered so can provide
• up to date and relevant • takes time to arrange and analyse a competitive advantage
• very expensive to carry out • may need to be paid to take part • disadvantages
• business can gain insights into • limited use for quantitive research • expensive
its target audience • possibility of researcher bias • enough time needs to be dedicated
• methods include: surveys, • Observations • training for staff is required
interviews, focus groups and • avoids respondents being aware that they • the sample might be unrepresentative
observations are taking part in a piece of research so • Secondary
• Secondary market research cannot alter answers they give as with the • advantages
• uses information that is already other methods • inexpensive
available • advantages • consists of wider macroeconomic
• can be carried out very quickly • people can be observed without bias information
• gives an overview of a market • websites can automatically record users • can access market reports
• gives broader information about movements without any additional costs • disadvantages
a potential target audience such • disadvantages • must rely on methods of others
as demographic information • customers may not like being spied upon • does not inform about customer preferences
• methods include market analysis, • sometimes the results are difficult to • might not exist for certain fields
academic journals, government explain • gathered with different objectives in mind
publications and media articles
Why and how do organisations
Methods of Primary Market Research: Methods of Secondary Market Research:
carry out market research?
• Surveys • Market Analysis Reports
• market research - gathering
• attempt to gain data from large numbers of • advantages
information, gaining a better
respondents in a short time frame • detailed information about every aspect of
understanding of customers, a market
competitors and markets, to aid • suited for gathering quantitative data
• forms include online surveys, surveys by • may be invaluable for gaining an overview
marketing decisions. Areas of focus
phone, as well as face-to-face of a new market
for market research include: price,
questionnaires • disadvantages
product, promotion and place
• advantages • the cost may be too much for smaller
• market orientated - likely to companies
base their strategies on the • fast to design
• large amounts of quantitive data can be • could be outdated unless recently
results of their market research
gathered published
• product orientated - new
• cost-effective • little competitive advantage can be gained
products or prototypes tested on as competitors have the option to
potential customers to gain • can bring about more truthful answers if
anonymous purchase the same report
responses before it is released
• disadvantages • Academic Journals
onto the market
• respondents may not take the research • advantages
• test market - a limited launch of
seriously • contain the latest contemporary academic
a new product for a limited time ideas
in a specific area. If successful, • limited use for qualitative research
• possibility of researcher bias • information is likely to be reliable
the products will be released on
• could have a rigid frame and not give the • potentially useful when planning corporate
a national scale.
opportunity to give opportunities to share strategy
• Price-based research
views • disadvantages
• in competitive markets, new
• Interviews • could be of limited use for many day-to-
companies may be forced to use day business decisions
a competitive pricing strategy by • can gain large amounts of qualitative data
• allow for follow up questions and • a subscription fee is typically required
finding out the pricing strategies
clarification • Government Publications
of competitors
• can be transcribed to be referred to at a • such as the OFT (Office for National
• Promotion-based research Statistics)
• important to know which media later date
• take a large amount of time to complete • advantages
their target market accesses as
• interviewees may need to be offered • normally reliable data
money will be wasted if the target
financial incentive • the only way to access some economic
market do not see the marketing and demographic data
message • advantages
• qualitative data • most data is free
• potential customers may be used
• gaining additional information • disadvantages
to test reactions to promotional
• useful for gathering expert opinion • the quality of the data may depend upon
campaigns by being interviewed the wealth of the country producing it
as a group (focus group) • disadvantages
• takes a large amount of time to arrange • Media Articles
• Place-based research
• fee for participation • advantages
• selecting the right channel of
• possibility of researcher bias • up-to-the-minute information available
distribution can be the difference
• expensive • media sites have to searchable databases
between success and failure
• Focus Groups • some sites are free to access
• market analysis reports can
• an interview conducted with a group of • disadvantages
provide information about the
individuals usually with similar • many newspapers and most magazines
effectiveness of different
characteristics require a subscription
channels of distribution
• advantages • many newspapers have a political bias
• large amounts of qualitative data can be
gathered
• conversation can flow freely rather than
being responses to fixed questions Primary vs Secondary:
Carrying out Market Research: • individuals have the opportunity to ask
questions • Primary
• Primary market research • researchers can seek clarification • advantages
• leads to the creation of new • potential changes to marketing mix can • direct information
information be pre-tested on members of the target • can discover reasons for purchases being
• aims to answer a specific market made
research question • disadvantages • unique information gathered so can provide
• up to date and relevant • takes time to arrange and analyse a competitive advantage
• very expensive to carry out • may need to be paid to take part • disadvantages
• business can gain insights into • limited use for quantitive research • expensive
its target audience • possibility of researcher bias • enough time needs to be dedicated
• methods include: surveys, • Observations • training for staff is required
interviews, focus groups and • avoids respondents being aware that they • the sample might be unrepresentative
observations are taking part in a piece of research so • Secondary
• Secondary market research cannot alter answers they give as with the • advantages
• uses information that is already other methods • inexpensive
available • advantages • consists of wider macroeconomic
• can be carried out very quickly • people can be observed without bias information
• gives an overview of a market • websites can automatically record users • can access market reports
• gives broader information about movements without any additional costs • disadvantages
a potential target audience such • disadvantages • must rely on methods of others
as demographic information • customers may not like being spied upon • does not inform about customer preferences
• methods include market analysis, • sometimes the results are difficult to • might not exist for certain fields
academic journals, government explain • gathered with different objectives in mind
publications and media articles
