Market marketing and business decisions i.e. how much

Market research can be defined as the collection, collation and analysis of data relating to themarketing and assumption of goods and services. There are 2 different types of market research(Primary and Secondary). The main reasons why organisations gather market research include:? To gauge consumer opinion regarding the businesses current products and services? To identify gaps in the market so that the business can develop a product/service to satisfythe needs of the consumer and create a competitive advantage over its rivals.? To test market any new products that the business has developed and is unsure of whetherit shall make a lot of profit and develop a unique selling point (USP).? To help make key marketing and business decisions i.e. how much to charge for theirproduct or how to promote their product.? To monitor competitors and ensure that the business is able to respond to any changes inthe market to maintain and increase market share.Primary research is also known as Field research. This is information which does not already existand therefore has to be collected by the researcher first hand. Examples of field research include:? Questionnaires, these tend to be written questions which the respondent answers via fillingin the answers.? Interviews, this is involves and interviewer receiving information from one person face toface. The interviewer rather than the interviewee fills out the responses to the questions.? Observations, this is often used by retail “watching” consumers their stores. Observers lookout for the amount of time and consumers spend time making decisions on how they reactto particular displays.An advantage of Primary research is that information tends to be relevant and fit for purpose as ithas been collected first hand. A disadvantage of Primary research tends to be very expensive.Secondary Research is also known as Desk Research. This is information which already exists insome form. It may be existing business documents or other publications. This is information that wascollected for a different purpose but can help the organisation make vital marketing decisions.Examples of Desk research include:? Government publications such as the census. This are statistics about the population such asaverage age, gender and income.? Newspaper articles quite often will gather data to help write publications.? Annual accounts such data can be useful to analyse/identify market trends.An advantage of secondary research is that it is quick and readily available as has already beencollated. A disadvantage is that it may not be relative as it has been collected for a different purpose.Whilst conducting Market Research the interviewer will collect/ handle both quantitative data andqualitative data. Factual information is called quantitative data. Information collected aboutopinions and views is called qualitative data.Quantitative data is an amount (quantity or range) of research that is found through looking at theinternet and information that already exists. This information can be put into spreadsheets andgraphs. The best thing about this is that you gain a large amount of research with this meaning thatName: Muushiwedu Manyanga,the working out of a mean (from your scores) is quite possible. However, the information may notbe accurate as there may not be as many specific questions.Whereas, Qualitative data is the sort of information that is more to do with the quality rather thanthe quantity. This is information is collected through the research methods of surveys andquestionnaires (that is specific to the market research). The best thing about these methods is thatyou receive an ethical answer as well. You get the opinion on what the public think about theproduct or service which is being provided then the information will be direct to the market whichyou are choosing. The advantage is that you’ll gain accurate information which is specific to theresearch you are taking out. The (only) disadvantage about this is that this is a very time consumingway when receiving that data as you would have to go in detail. Another thing is that it would take avery, very long time.Open questions enable to obtain quality of data whereas close questions enable you gatherQauntative data. The advantage of having qualitative data is that information is detail and highlyrelevant, however it can be difficult and time consuming to analyse. Qauntative data is collated usingclosed questions. This data is easier to collate and analyse but can lack detail.Here’s an example:What is your favourite colour? ……………………………………………………. (Open question)