11.

Market research

Market research = activity of gathering information about customer needs and preferences >>
identify current & future customer needs & wants
Help to reduce risk of launching new or improved products

🔸Two Orientations
1. Product-oriented business: produce product first, then try to find a market for it - focus on
product’s quality & price >> convince people to buy it
2. Market-oriented business: conduct market research, find consumer needs & wants, then
produce goods or services to satisfy - focus on the markets >> to meet customer needs & wants

🔸2 Types of Research
1. Primary research : collect original information directly eg. Questionnaire, Phone/face to face
interview, Observation, Focus group
Pros : data is collected personally, relating directly to the researcher’s study
Cons : costly, time consuming
2. Secondary research : information has been compiled, organised, published by others eg.
Studies by government agencies, Public /Commercial sources, Statistics, Reports, Newspaper,
Internet
Pros : ease of access, low cost
Typically use in a small business (limited budgets)
Cons : not specific to researcher’s needs, incomplete information

🔸 Why market research is not accurate

- bias/not be honest
- small sample size
- outdated

🔸 Presentation of market research

: Tables, Graphs, Charts,

🔸 Use of market research

- identify market opportunities/problems
- generate marketing activities
- monitor marketing performance
- reduce risk
- help for decision making

🔸 Sampling
- Random >> sampling without reason
- Quota >>selective sample
🔸 Quantitative data : can be expressed as a number eg. Score, Weight, Hour
Qualitative data : cannot be expressed as a number eg. Gender, Preference, Economic
status