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What is market research?

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The objective collection, compilation, and analysis of information about a market.

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What are the benefits of effective market research?

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1. Reduces risk when launching new products or entering new markets. 2. Identifies future needs and wants of customers. 3. Understands consumer behavior. 4. Identifies how much consumers are prepared to pay. 5. Identifies potential market gaps. 6. Identifies competitors and gauges their strengths and weaknesses.

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What is market orientation?

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An approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs.

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What is primary market research?

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The process of gathering information directly from consumers in the target market.

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What are common methods of primary market research?

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Surveys, interviews, focus groups, and observation.

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What is the purpose of market testing?

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To assess customer reaction to a product or service before it is launched.

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What is a focus group?

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A small group discussion led by a marketing specialist to collect detailed feedback on all aspects of the marketing mix.

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What are the advantages of primary market research?

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1. Focused on the needs of the business. 2. Allows for in-depth information gathering. 3. Up-to-date and relevant to business decisions.

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What are the disadvantages of primary market research?

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1. Sample size may be too small and unrepresentative. 2. Potential for bias in responses. 3. Can be expensive and time-consuming.

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What is secondary market research?

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The collection, compilation, and analysis of data that already exists.