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Market research
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Market research tells a business what customers want before it risks money on an idea.
Why research?
To identify and understand customer needs, spot gaps in the market, reduce risk and inform decisions.
Primary and secondary research
Primary (field) research: new data collected first-hand: surveys, questionnaires, focus groups, observation, test marketing. Specific and up to date, but slower and costly.
Secondary (desk) research: existing data: internet, market reports, government statistics. Cheap and quick, but may be out of date or not specific.
Secondary (desk) research: existing data: internet, market reports, government statistics. Cheap and quick, but may be out of date or not specific.
Qualitative and quantitative
Quantitative data is numbers, such as "62% prefer chocolate". Easy to analyse.
Qualitative data is opinions and reasons, such as "I like it because it is less sweet". Gives deeper insight.
The bigger and more representative the sample, the more reliable the results.
Qualitative data is opinions and reasons, such as "I like it because it is less sweet". Gives deeper insight.
The bigger and more representative the sample, the more reliable the results.
A new gym wants to know what classes local people want. Should it use primary or secondary research?
- It needs specific, local information.
- Existing reports are unlikely to cover this exact area.
- A survey of local people (primary research) fits best.
Answer: Primary research, such as a local survey.
Research identifies needs and gaps and reduces risk. Primary is new and specific but costly; secondary is cheap but may be dated. Quantitative is numbers; qualitative is opinions.
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