Market Research: The Role Of Market Research And Methods Used (Copy)
Cheat Sheet: 3.2.1 Market Research
Role of Market Research
| Concept | Explanation | Example |
|---|---|---|
| Definition | Collecting and analysing data about customer needs, competitors, and market trends | Surveys before launching a new phone |
| Purpose | Helps reduce risk, spot opportunities, set prices, design products, plan promotion | Clothing brand uses research to follow fashion trends |
| Market-Oriented Business | Uses research to make decisions instead of relying on intuition | Starbucks adding vegan options after customer demand |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Primary Research (Field Research)
| Method | Features | Benefits | Limitations |
|---|---|---|---|
| Questionnaires (postal/online) | Set list of questions | Cheap (online), quick feedback | Low response rates |
| Interviews | Face-to-face/phone, detailed | Rich, qualitative data | Time-consuming, costly |
| Focus Groups | Small group discussions | In-depth opinions | Small sample, may not represent market |
| Observation | Watching consumer behaviour | Real behaviour, not claimed | No reasons given for actions |
Secondary Research (Desk Research)
| Source | Features | Benefits | Limitations |
|---|---|---|---|
| Online Sources | Internet databases, articles | Quick, cheap, wide range | May be unreliable/outdated |
| Government Statistics | Census, economic reports | Reliable, large-scale | May lack detail for specific markets |
| Commercial Reports | Paid data from agencies | Professional, detailed | Expensive |
| Internal Data | Past sales records, customer data | Easy to access | Limited scope, may be outdated |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Sampling
| Concept | Explanation | Example |
|---|---|---|
| Need | Cannot question everyone → sample group used | Surveying 500 customers instead of entire population |
| Random Sampling | Everyone has equal chance | Names picked from database |
| Quota Sampling | Sample reflects characteristics (age, gender, etc.) | 40% male, 60% female sample |
Factors Affecting Accuracy of Market Research
- Sample size: Larger = more accurate
- Sample method: Random/quota improves reliability
- Question design: Clear, unbiased wording
- Researcher bias: Avoid leading questions
- Timeliness: Data must be up-to-date
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Revision Bullets
- Market research = reduces risk, identifies demand
- Primary research = original data (surveys, interviews, focus groups, observation)
- Secondary research = existing data (internet, govt., reports, internal data)
- Sampling essential to represent population
- Accuracy depends on sample, design, timeliness
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course