A level Business Revision - Primary Market Research

Summary

This video explores primary market research, where businesses collect firsthand data to understand their customers and market trends. It covers four key methods: surveys (in-person, online, SMS, and phone), focus groups for in-depth feedback, test marketing in small representative areas to gauge potential success, and observation of customer behavior in stores or attractions. The video highlights the advantages of primary research, such as tailored insights and up-to-date information, while also noting challenges like cost and time requirements. Viewers gain a clear understanding of how businesses gather actionable data to make informed marketing decisions.

Takeaways

• 😀 Primary market research involves collecting data firsthand by the business itself, also called field research.
• 😀 Surveys are a common method of primary research and can be conducted face-to-face, online, via SMS, or by telephone.
• 😀 Personal interviews allow businesses to ask follow-up questions for deeper insights from participants.
• 😀 Focus groups gather in-depth feedback from a small selection of target customers, either one-off or periodically.
• 😀 Test marketing involves launching a product in a small, representative area to evaluate its potential success before a full-scale launch.
• 😀 Observation tracks consumer behavior without directly asking for opinions, often using CCTV or electronic tracking devices.
• 😀 Primary research is highly tailored and specific, allowing businesses to focus on the exact information they need.
• 😀 The information collected through primary research is current, which is important in fast-moving markets.
• 😀 Limitations of primary research include high costs, such as hiring staff or outsourcing, and significant time investment for data collection and analysis.
• 😀 Businesses use primary market research to inform decisions on product development, marketing strategies, and consumer behavior understanding.

Q & A

What is primary market research and why is it sometimes called field research?

Primary market research is the process where organizations collect information themselves directly from their target audience. It is called field research because the business goes out into the market or 'field' to gather firsthand data rather than relying on pre-existing sources.

What are the main methods of conducting surveys in primary market research?

Surveys can be conducted face-to-face through personal interviews, electronically via websites or third-party platforms, via SMS text messages, or over the telephone. Each method allows organizations to gather opinions from their target audience.

What is the advantage of face-to-face interviews compared to other survey methods?

Face-to-face interviews allow the researcher to ask follow-up questions and probe deeper into responses, providing richer, more detailed information compared to other survey methods.

How do focus groups help businesses in primary market research?

Focus groups involve small selections of the target market providing in-depth feedback on products, pricing, promotions, and other aspects of the marketing mix. They can track opinion changes over time and offer qualitative insights that surveys may not capture.

What is test marketing and why is it used?

Test marketing involves launching a product in a smaller, representative region before a full-scale release. It allows businesses to evaluate the product’s reception, make adjustments if necessary, and reduce the financial risk associated with a nationwide or large-scale launch.

What does the observation method involve in primary market research?

Observation involves monitoring consumer behavior without directly asking for opinions. For example, retailers may track customer movement in stores or theme parks may use wristbands to analyze visitor behavior. This provides insights into real behavior rather than self-reported preferences.

What are the main advantages of conducting primary market research?

The main advantages are that it is tailored to the organization’s specific questions and objectives, and the information collected is current, reflecting the latest consumer preferences and market trends.

What are the main disadvantages of primary market research?

Primary research can be expensive due to staff recruitment, outsourcing, or hiring experts, and it is time-consuming because it involves data collection, analysis, and interpretation over weeks or months.

Why might telephone surveys be considered intrusive?

Telephone surveys can be considered intrusive because they directly contact consumers at home or on personal devices, which some people may find disruptive or annoying.

How can the observation method be particularly useful for retailers and theme parks?

Observation helps understand how customers interact with products or attractions, track movement patterns, assess which areas are most engaging, and determine customer preferences, which can inform marketing, store layout, and operational decisions.

Why is it important for test markets to be representative of the overall market?

A representative test market ensures that the results accurately reflect how the wider target audience might respond to the product. This helps businesses make informed decisions about broader product launches.

How can focus groups reveal changes in consumer opinions over time?

If the same group of participants meets periodically, businesses can track how their opinions evolve, providing insights into trends, preferences, and the effectiveness of marketing strategies over time.