1.3.5

1.3.5

1. MARKET RESEARCH

   • Limitations
     • - Findings may be inaccurate
     • - Tricky foreign markets - may be inaccurate - trained local people
     • -Some markets change quickly
     • -Production decisions might be taken by managers who dont understand the market
   • Strengths
     • - Quantify potential demand
     • - Understand how much customers are willing to pay
     • - Understand customer behavior
     • - Study competitors and USP's
     • - identify key features of the buisness enviroment - Legal, potential, social, demographics, competitvness

2. TYPES OF MARKET RESEARCH

   • quantative research - Quantitative data collection methods include various forms of surveys – online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews,
   • secondary research - Secondary research involves the summary, collation and/or synthesis of existing research. Common examples of secondary research include textbooks, encyclopedias, news articles, review articles, and meta analyses.
     • Advantages
       • Pros: As it is largely based on already existing data derived from previous research, secondary research can be conducted more quickly and at a lesser cost.
     • Disadvantages
       • Cons: A major disadvantage of secondary research is that the researcher may have difficulty obtaining information specific to his or her needs. Additionally, existing research data may not have the currency necessary to be useful.
   • Primary research - Primary research is any type of research that you collect yourself. Examples include surveys, interviews, observations, and ethnographic research.
     • Advantages
       • Specific: Primary research meets the specific needs of the researchers. It is up to date as well.
       • Proprietary rights: Data collected in primary research belongs to the researcher or the organisation sponsoring the research and therefore, others may not have access to it.
     • Disadvantages
       • Time consuming: Collecting primary data is often time-consuming and difficult.
       • Misleading information: If the sample is not big enough, the results of the research may be misleading.
   • Qualatative research - Qualitative research relies on data obtained by the researcher from first-hand observation

3. SAMPLING

   • Convenience sampling - This method of sampling is when you ask people who are willing to take part and available at the time.
     • Advantages
       • Easy because people are close and willing to participate.
       • Cheap
     • Disadvantages
       • People who are near and willing to take part might not be the people you necessarily wish to target.
   • cluster sampling - This is when parts of the population are sampled because of their geographic group or “cluster”.
     • Advantages
       • More cost effective for face to face interviews.
       • Can gather opinions of specific , targeted groups of people.
     • Disadvantages
       • Expensive
       • Businesses need to have a clear idea of who to target when selecting their cluster.
   • Random sampling - Random sampling means that members of the population have an equal chance of being selected to take part in the research.
     • Advantages
       • Eliminates bias
       • Wide spread opinions from a variety of people.
     • Disadvantages
       • Can be time consuming to set up.
       • Can be costly
   • Quota sampling - The aim of Quota Sampling is to get a sample that is representative of the overall population. The population is divided (stratified) by important factors such as income, age and location and then a sample (quota) from each section are chosen to take part.
     • Advantages
       • Quick and easy way of getting a sample.
       • True reflection of the wider population .
     • Disadvantages
       • Not random, so there’s a risk of bias.
       • Need to understand the population and have a lot of information before they’re divided.

4. Market segmentation - Market segmentation splits up a market into different types (segments) to enable a business to better target its products to the relevant customers.

   • Advantages
     • Better matching of customer needs
     • Better opportunities for growth
     • Retain more customers
     • Gain share of the market segment

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