4.4 Market research – IB Business Management – Flashcards
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Market research
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The process of collecting, analyzing and reporting data related to a particular market
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Purpose of market research
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- To identify consumer needs and wants - To assist a business in predicting what is likely to happen in the future - To reduce the risk of product failure - To measure the effectiveness of a marketing strategy - To provide current or latest information regarding activity in the market
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Primary research
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The collection of first-hand information from the market - surveys - interviews - focus groups - observation
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Secondary research
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The collection of second-hand information from the market - academic journals - media articles - government publications - market analyses
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Surveys
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Questionnaires sent out to a particular target audience (by email, telephone or online) Advantages- large amount of data, easy to use, can be used to collect information in a wide range of aspects such as opinions Disadvantages- if constructed poorly, thy can hinder research, answers may not be accurate, can be costly
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Interviews
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A conversation in which one person asks another questions Advantages- Detailed information, high response rate because of the one-on-one attention Disadvantages- highly time consuming, may be biased
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Focus groups
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A small group of people brought together to discuss a product or idea Advantages- subjects are cheap and easy, can be used to measure the reaction of consumers, help identify key product requirements, provide insights on the position of competitors Disadvantages- opinion of a small number of individuals do not reflect a whole market, some members might not be honest, more costly than surveys
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Observation
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Carefully watching and trying to understand certain thing in people's behavior Advantages- it is a direct method, a large number of individuals can be surveyed, cost-effective Disadvantages- complete answers cannot be obtained, cannot be used to study attitudes or opinions
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Academic journals
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Publications of scholarly articles written by experts. Advantages- they undergo a peer-review before being published, include reports and reviews of current research and topic-specific information, take less time to publish than books Disadvantages- may not be the best source of general-interest topics, peer-review process can be time consuming
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Media articles
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Newspapers and magazines Advantages- cheap, most newspaper articles have been well researched, widely available Disadvantages- Difficult to communicate events in real-time, information can be biased, can be considered a waste of paper and energy resources
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Government publications
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Articles produced by the government on a wide variety of topics
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Market analyses
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Commercial publications or market intelligence reports that gather data about particular markets
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Qualitative research
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Collecting of data about opinions, attitudes or beliefs
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Quantitative research
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Collecting of numerical data and data that can be measured
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Sample
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Small group selected to represent the population or a target market
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Sampling methods
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- quota sampling - random sampling - stratified sampling - cluster sampling - snowballing - convenience sampling
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Quota sampling
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Segmenting the population into a number of groups that share certain characteristics
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Random sampling
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Every member of the population has an equal chance of being selected for the sample
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Stratified sampling
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The target population is made up of many different groups who are subdivided into segments that share similar characteristics
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Cluster sampling
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When the population is geographically dispersed, a group of people from each region is selected
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Snowballing
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Surveying the first group or individual, who then suggests another group or individual
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Convenience sampling
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This is a sampling technique where groups are selected on their easy access and proximity to the researcher
