Methods Of Market Research aqa

Primary market research

• Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, etc

  • This research gathers information which is new and does not already exist in any format

  • The most commonly used methods of primary market research include surveys, interviews based on questionnaires, observation, focus groups and test marketing 

• Businesses usually carry out primary research with a sample of the target market in which they are interested

  • A sample is a group of respondents that reflects the characteristics of the target market as a whole 

  • The larger the sample size, the more likely it is that research results will reflect the views of the target market as a whole

• A business will often use more than one method of primary research in order to build up a reliable understanding of the market

  • The data can then be analysed and used to make data-led judgements such as how much to charge for a new product and where to sell it

Methods of primary research

• Primary market research should be able to answer many of the specific questions businesses have about their customers, competitors and market conditions

• However, it can be costly to conduct

  • Small businesses are likely to be limited on the type and scale of primary research they conduct

Evaluating primary market research

Secondary market research

• Secondary research involves the collection, compilation, and analysis of data that already exists

Secondary research sources

Government publications

• National governments and trading blocs such as the EU publish reports and statistics on topics such as the economy, demographics, industry trends and consumer behaviour

Academic institutions

• Universities and research institutions conduct studies and publish research papers which provide valuable insights and data on specific industries, consumer behaviour and market trends

  • E.g. Stanford University is a globally significant research centre for engineering and medicine

Industry associations

• Trade associations and industry-specific organisations provide detailed information about specific sectors, including market size, growth rates and industry benchmarks

  • E.g. The International Organisation of Motor Vehicle Manufacturers conducts and collates research on production and sales statistics

Specialist market research reports

• Companies specialising in market research produce and sell in-depth reports on various industries, markets and consumer trends

  • E.g. Mintel is one of the leading private companies supplying market research information

Financial reports

• Public limited companies are required to publish annual reports which can provide valuable information about a company’s performance, market position and future plans

Online databases

• There are various online databases and research platforms that provide access to a wide range of secondary market research 

  • E.g. Statista and Euromonitor International make a large volume of data on international commerce available

Media sources

• Newspapers, magazines and online publications often contain articles, opinion pieces and investigative reports that can offer insights into market trends, consumer behaviour and industry developments

  • E.g. The Financial Times and the Wall Street Journal

• Businesses must weigh up the reliability of secondary market research

  • Aspects such as cost, relevance and availability of data will affect the decision on which secondary data to use

Evaluating secondary market research

Choosing appropriate market research methods

• Businesses often use a combination of different market research methods to gain a comprehensive understanding of the market, consumers, and competition

• Their choice of market research methods depends on a range of factors, including:

1. The research objectives

• If a business wants to gather in-depth insights and understand consumer motives, qualitative methods like focus groups or in-depth interviews may be the most suitable

• If the business simply wants to measure market size, identify consumer preferences, or measure market trends, quantitative methods like surveys or data analysis may be more appropriate

2. Target audience

• The geographic location and how easy it is to communicate with the target market can influence the choice of research method

  • If the target audience is spread across a wide geographical area, online surveys or phone interviews may be more practical than in-person focus groups or face-to-face surveys

3. Level of detail required

• Qualitative methods like interviews provide detailed insights but are more time-consuming and expensive to carry out

• Quantitative methods like surveys can cover a larger sample size but may lack the depth of qualitative methods

4. Resources

• Businesses with limited budgets may not be able to afford very detailed research

• Those requiring market research quickly or have limited human resources to carry out research may only be able to access secondary market research

5. The nature of the product

• Testing a physical product may require in-person focus groups or product trials

• Researching a service or digital product may be better suited for online surveys or beta testing