What is market research and why it is important

Updated: Mar 2

Market research identifies preferences and behaviours of customers and competitor's strategy to be used to develop marketing strategies. These preferences include spending patterns, competitive threats and strategies used by competitors.


Market research can be conducted through primary or secondary research. Primary research methods involve collecting up-to-date data from research performed to meet a specific need. This method is time-consuming and costly as the research must undergo all research steps. Primary method research involves;


  1. Face-to-face interviews

  2. Telephone surveys

  3. Online or Zoom surveys

  4. Postal surveys

  5. Focus group/consumer panel

  6. Observation

Secondary research involves using information published from other completed research. They cost less but may not provide accurate and up-to-date information. They are usually obtained from newspapers, magazines, journals, published reports from trade associations, and government agencies.


Market research is especially important to a market-oriented business, as they utilise results from market research to develop products and marketing strategies. While product-oriented businesses would rely on market research to gather information of their competitors' performance, weakness and strengths to develop strategies to compete to increase market share.


RELATED CONCEPTS


  1. Market-Oriented Businesses

  2. Product-Oriented Businesses

  3. Market Segmentation

  4. Marketing Strategies

  5. Marketing Mix


PAST YEAR QUESTIONS

  1. Identify and explain two methods of market research that a firm could use. (4 marks) May/June 2018/11

  2. Identify and explain two benefits to JSF of market research. (4 marks) May/June 2018/12