Market Research

Uses To help firms make decisions about whether or not to launch a new product: Do consumers want the product? What sort of promotion mix should be used? Details about product design What price would the consumer be prepared to pay? Where is the best place to sell the product? What are the present buying habits of the target market?

Uses Ongoing research might be valuable to: Identify trends in the market Plan ahead Explain a specific problem, e.g. why are sales of a particular product falling? Trial or test market a new product in a small region

Types of data Primary data Secondary data Do not already exist Field research Secondary data Already exists in some form Desk research Quantitative & qualitative data

Secondary Research Advantages Relatively cheap as it already exists Gives an overall view of the market Often uses very large samples Disadvantages Data can be out of date Not specific to user’s needs

Primary Research Advantages Specific to firm Up-to-date information Can answer psychological questions Disadvantages Usually very expensive Risk of bias Time delay

Sources of Secondary Data Internal External

Internal Sales records Information on number of people using a store (counters) Financial information Loyalty cards

External Government publications: Trade journals Annual abstract of statistics Regional trends Economic trends Family expenditure survey Trade journals Commercial agencies & publications: Mintel, Gallup, etc.

Primary Research Methods

Primary Research Methods Experiment Observation Focus Groups Surveys Personal interviews Postal surveys Telephone interviews Internet surveys Test marketing