Chapter 11: Market Research
Market Research
Notes:
Market research is crucial for businesses to understand consumer needs and
preferences before developing products.
Types of Businesses:
1. Product-oriented business: Focuses mainly on the product itself.
2. Market-oriented business: Prioritizes market research to understand
customer preferences before product development.
Importance of Market Research:
Determines potential demand and profitability of a product.
Main Types of Market Research:
1. Primary Research (Field Research)
2. Secondary Research (Desk Research)
Primary Research:
Involves gathering original data directly from customers or potential
customers.
Methods include questionnaires, interviews, surveys, focus groups, and
observations.
Accurate data collection depends on careful sampling, well-designed
questions, and minimizing bias.
Questionnaires:
Detailed qualitative information.
Online surveys may be cheaper and easier to analyze.
May mislead if not filled properly.
Interviews:
Detailed information but time-consuming and expensive.
Risk of interviewer bias.
Surveys:
Random or quota samples.
Useful for specific group views.
Focus Groups:
Detailed information but time-consuming, expensive, and potentially
biased.
Observations:
Inexpensive but limited information.
Secondary Research:
Involves using existing data from internal and external sources.
Internal sources: sales, customer records, finance, customer service.
External sources: government statistics, newspapers, trade
associations, market research agencies, internet.
Flashcards:
Front (Question) Back (Answer)
Gathering information about consumers' needs
What is market research? or preferences in a market.
Product-oriented business and Market-oriented
Name two types of businesses. business.
Why is market research important? To determine potential demand and profitability
Front (Question) Back (Answer)
of a product.
What are the two main types of market
research? Primary Research and Secondary Research.
Gathering original data directly from
Define Primary Research. customers/potential customers.
Questionnaires, interviews, surveys, focus
Name some methods of primary research. groups, and observations.
What is a benefit of online surveys? They may be cheaper and easier to analyze.
What is the risk of using interviews for Interviewer bias and it is time-consuming and
market research? expensive.
Using existing data from internal and external
What is secondary research? sources.
Give examples of internal sources for Sales records, customer records, finance
secondary research. records, customer service records.
Front (Question) Back (Answer)
What is the advantage of secondary It is cheaper than primary research as the data
research? is already collected.
What is an important factor in ensuring
accurate research data? Careful sampling and well-designed questions.
What is a potential limitation of secondary
research? Data may be outdated or biased.
What type of research is used to anticipate
changing customer needs? Market-oriented research.
What is the main purpose of focus groups To provide detailed information about a specific
in market research? product.
What is the key benefit of market
segmentation in market research? Efficient targeting of specific consumer groups.
Lesson Plan Objectives
1. Understand the - Grasp the concept of market research and its significance in business
Concept decision-making.
- Comprehend the role of market research in identifying customer
needs and preferences prior to product development.
2. Distinguish
Research Types - Differentiate between primary and secondary research methods.
- Understand that primary research involves collecting original data
directly from customers, while secondary research relies on existing
data sources.
Lesson Plan Objectives
3. Explore Primary - Explore various primary research methods, including questionnaires,
Research Methods interviews, surveys, focus groups, and observations.
- Recognize the advantages and disadvantages associated with each
primary research method.
4. Evaluate - Analyze the benefits of utilizing primary research methods, such as
Primary Research obtaining detailed qualitative insights, capturing customer opinions,
Benefits and cost-effectiveness through online surveys.
- Recognize potential drawbacks, like time and cost implications, when
conducting primary research.
5. Examine - Examine sources of secondary research, including internal (company
Secondary records) and external (government statistics, newspapers, trade
Research Sources associations, market research agencies, internet) sources.
- Understand the value of leveraging existing information through
secondary research.
6. Understand - Comprehend the benefits of secondary research, such as cost-
Benefits and effectiveness, availability of broad data, and insights from various
Limitations sources.
- Recognize limitations of secondary research, including potential lack
of specific information, outdated data, and bias in certain sources.