MARKET RESEARCH

In this unit we are going to learn the difference between primary and secondary market research and how primary and secondary market research may be used by a business to help inform its marketing decisions.

Primary Research

The information we can extract for a primary research its good because it’s a first hand information what can be highly focussed and relevant. The problem is what this process of collect this info its expensive also its to analyse and evaluate the information. Another disadvantage is the care needs to be taken whit the approach and methodology to ensure accuracy. The questions can be “closed”(yes or no questions) or open (more elaborated questions what provides useful information but difficult to analyse.

Market Research

The market research can be done gathering quantitative aor qualitative information. The difference between they are what the quantitative information it’s based on numbers and statistics and not bear in mind why, when or how. The qualitative information offer more details (why, when and how)

Secondary Research

The secondary research it’s realized using two types of sources: internal and external
1. Internal Sources:
o Company Accounts
o Internal Reports and Analysis
o Stock Analysis
o Retail data-till data, etc

2. External Sources:
o Government Statistics
o EU-Euro Stat
o Household Expenditure Survey
o Magazine surveys
o Other firms’ research
o Research documents-publications. Journals, etc.
o Web sites: commercial & non commercial.

SAMPLING METHODS

There are many methods to collect information. We can realize random samples where there are equal chances of anyone being picked. The best problem its that can be very expensive. Also we can do an stratified or segment random sampling. This system can be more focussed and may give more relevant information. The cheaper method is the quota sampling where an specific number on each segment are interviewed but may not be fully representative.
There are another methods not too importants like cluster sampling, multi-stage sampling or snowball sampling.

ADVANTAGES OF MARKET RESEARCH

The advantages of market research are we can help us to focus attention on our objectives, may help to reduce the risk of new product development and the research communicates image, vision, etc
The globalisation makes market information valuable

DISADVANTAGES OF MARKET RESEARCH

The disadvantages are that information only as good as the methodology used, can be inaccurate or unreliable, the results may not be what the business wants to hear etc…
We will never have sufficient information. ;)