Market Research
Some companies choose to carry out Market Research to see what sort of products they should produce and what price they should charge.
With the right Market Research, a business will know exactly who their target market is and then they will be able to advertise it more cost-effectively.
The following key points will be needed for your exam:
With the right Market Research, a business will know exactly who their target market is and then they will be able to advertise it more cost-effectively.
The following key points will be needed for your exam:
- Primary Research - sometimes known as field research. Examples include Questionnaires, Focus Groups, Consumer Panels, Telephone Surveys etc. This is brand new research that has never been collected before. It can be up to date and specific to what you need to know but it can be costly to collect - think about how many people you would need to ask to get 1000 responses, stood there in the cold, on Crown Point North!
- Secondary Research - sometimes known as desk research. Examples include obtaining information from Newspapers, Magazines, the internet, Libraries etc. This is information that has previously been collected by other people or businesses. It won't match your needs exactly, but it could still be useful. It is normally quick to obtain (especially with the internet) and often cheap or free, but it might be complex information and it can often be out of date.
- Market-Orientated Business - This is a business that carries out Market Research before producing any products. The research helps them to decide what to produce and at what price. Samsung often carry out Market Research to find out what people want in a mobile phone.
- Product-Orientated Business - This is a business that chooses NOT to carry out Market Research. Dyson are an example of this type of business. Instead, they just have a belief that people will buy their products.