What are the 5 stages in the market research process?
- Define problem/question
- Develop market research plan
- Collect data
- Analyse data
- Interpret and report findings
What are 4 positives of primary and secondary market research?
Primary
- Specific to the need
- More up to data and reliable
- Sampling saved money
- Better for qualitative data
Secondary
- Easily accessible and good starting point
- Better for quantitative data
- Fast and less time consuming
- Cheaper
What are 2 negatives of primary and secondary market research?
Primary
- More time consuming and costly
- Hard to get a large sample size
Secondary
- Some free, detailed reports can be expensive
- Not always up to data or relevant.
What is market mapping?
Compares competitors together in a market.
What are 2 positives about market mapping?
- Helps find gaps in the market
2. Useful process for market positioning
What is a negative about market mapping?
Only takes into account two main variables
What are the 3 correlations?
- Positives
- Negatives
- No correlation
What are the 2 strengths of correlations?
- Strong
2. Weak
What are 2 positives of sampling?
- Quicker and easier
2. The bigger the sample the more representative the data is
What is a confident level?
An indication of accuracy
What is a confidence interval?
The possible range of outcomes for a given confidence. The narrower the interval, the lower the level.
What is extrapolation?
Predicting future trends
Reliable when conditions stay the same
What is PED? Definition and Calculation
Price elasticity of demand
% change in quantity demanded / % change in price
What is IED? Definition and Calculation
Income elasticity of demand
% change in quantity demanded / % change in customer income
What 4 factors influence elasticity?
- Number of competitors
- Relative cost of switching to another product
- Necessity of product
- Value of brand
What happens to demand and revenue a product is price/income elastic and prices increase?
Bigger % decrease in demand
Revenue falls
What happens to demand and revenue a product is price/income elastic and prices decrease?
Bigger % increase in demand
Revenue rise
What happens to demand and revenue a product is price/income inelastic and prices increase?
Smaller % decrease in demand
Revenue rises
What happens to demand and revenue a product is price/income inelastic and prices decreases?
Smaller % increase in demand
Revenue falls
How is market size expressed?
Units sold or value
What is the calculation for market share?
(Total company sales / total market sales) x 100
What is the calculation for market and sales growth?
(Increase in market size or sales (the difference) / original size or sales) x 100
What are the 7 uses of market research?
- Product development
- Budgeting
- Production forecast
- Sales forecasting
- Developing marketing activities
- Workforce forecast
- Cash flow forecasting
