Market research is the process of collecting, collating and analysing data about the market.
Primary Research
Primary or field research is research that is done first hand e.g. questionnaires, surveys
Methods
- Postal surveys – these have a high sample size but low response rate, relatively cheap
- Telephone surveys – more expensive, higher response rate, can explain questions
- Interviews – smaller sample size, higher response rate, may be interviewer bias
- Focus groups – provide in-depth analysis, small sample size
Advantages
- Fitness for purpose
- Allows to target right segments
- Can explain difficult problems / concepts
Disadvantages
- Can be time consuming
- Expensive
- Some forms have low response rates
Secondary Research
Secondary or desk research uses existing sources of information e.g. books, journals
Methods
- Census – provides information on all the households in the UK, updated every 10 years
- Internet – can provide a wealth of information however need to check validity of data
- Government statistics
- Books and journals
- Company reports
- MINTEL reports – these are often a good source of market information
Advantages
- Quick and easy
- Relatively cheap
Disadvantages
- May be out of date
- May not be relevant
