Market Research :: Business and Management Studies

Market Research Finding out about what consumers want and need, and what makes them buy, is called MARKET RESEARCH. Market research is the process of gaining information about customers, competitors and market trends through collecting primary and secondary data. Why Research the Market? Businesses that are product orientated risk spending large amounts of money launching a product, which could be a failure. Research the market helps reduce this risk. It focuses research and design effort onto products, which have a chance of success in the market place. When the product is launched, a carefully researched product stands less chance of failing. Market research attempts to find the answers to questions a business might have about its market. This information is collected via desk research and field research. The information is then collected and analysed. The business then decides about what to do in the light of the information formed. Desk Research DESK RESEARCH involves the use of SECONDARY DATA. This is information that is available, both within and outside the business: Internal Sources is such as sales invoices, reports and accounts. Government is published statistics, such as consumer spending figures; reports such as Monopolies and Mergers Commission Reports. The Media is reports in newspapers, magazines, on radio and on television. Trade Associations is statistics or reports published by national organizations such as the TUC, the CBI or chambers of commerce, or industry associations such as the Engineering Employers Federation or the National Farmers Union. Research Organisations is reports prepared by specialist market research organizations such as Mintel or Mori; articles published in academic journals such as university journals. Field Research FIELD RESEARCH involves the collection of PRIMARY DATA is information which no one has yet collected. It is collected for the particular piece of research through direct investigation, that is, observation, survey and experiment.