1. Market Research

2. 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?

3. 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

4. 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

5. 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Data can be out of date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

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

7. Sources of Secondary Data
Internal
External

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

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

10. Primary Research Methods

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