Market Research

Definition: 

Process of systematically collecting, recording and interpreting information concerning a marketing issue (product, price, promotion, place) or a specific target market or need. 

Marketing has to be in touch with the world outside of the business.

Purpose: Reduce risk of failure, ensure marketing plan is based on reality.

Marketing that is not based upon actual research of the real world is likely to be incorrect, or make biased assumptions that lead to poor financial performance (low sales, low profits or financial losses). 

Steps: 

• Determine information needed / problem to be solved; 

• Collect data from primary and secondary sources; 

• Analyse and interpret data (and incorporate into marketing strategic direction).

Sources:

• Primary: Data created by the organisation to solve a particular problem; specific to the organisations requirements. Expensive and time-consuming, but accurate and fit for purpose. Can include: 

  • surveys, 

  • observations, 

  • experiments.

• Secondary: Data created by an external organisation that is not specific to organisational requirements. Less expensive and faster, but not exactly matching organisational requirements. Can include: 

  • External: Australian Bureau of Statistics, Company reports, Industry reports, media articles.

  • Internal: Previous company statistics for sales, revenue and profitability