The process of gathering, recording and analyzing data and info about customers, competitors and the market in which you intend to enter.
It includes research on… THE FOUR P’S - what types of consumers buy the products currently - the consumer opinion of the product - ideal consumer price - existing competition, and the potential competition - available/appropriate packaging and promotion - the place in which to sell - whether or not there are any legal restrictions or regulations
In order to define the market research methods used by organisations today, we must briefly explore the types of information we intend on gathering: Information can come from 4 different sources:
Collected 1 st hand by the business itself. Should be free from bias, and be able to be traced back to the original source. Used to make informed decisions. Main source of market research. Cheaper than primary; may not be ideally suited tp the purpose required. Less reliable. Published information (newspapers etc). Sourced from within the business; financial data or customer info. Verifiable, reliable. Sourced out-with the business. Govt. statistics, market research by third parties, consumer test reports. Gives insight into the operating environment and direct competitors. Not generally verifiable.
Gathering information 1 st hand. Variety of methods:
Surveys : Personal interview, postal survey, telephone survey, purchase surveys.
Questionnaires : purpose should be clear; it is a voluntary act of respondent.
Test marketing : Selling it to small part of market before full release. Used by majority of food products ‘limited time only’. Potentially unsuccessful products can be removed before too much money is lost. Changes can be made in response to consumer reaction.