P3 and M2 Unit 3 Business Essay

1393 WordsJun 8, 20156 Pages
Market research contains a collection of data which obtains knowledge into the needs, demands and preferences of customers and the dynamic of the market in which they are involved in. The process involves gathering, analysing and interpreting information about a market and about past, present and potential customers for the product or service; research looks at the spending habits, location and needs of the business’s target market, and the particular competitors that the business may be facing. Market research involves two types of data: * Primary information. This is information that comes from a business’s source – potential customers; this is generally gathered by a business for their own specific purposes. This type of research usually takes the raw data such as information collected through focus groups or/and surveys and interpret the data for different business purposes. * Secondary information. This of research gathers existing information through available sources which include: information on the internet, existing market research results and existing data from business’s own stock lists etc. Secondary information allows an initial understanding of the business’s market, its fast than primary data as someone has already started to analyse it. Market research should be done on a continual basis to keep up with trends in the market and keep a competitive edge against competitors. It can be used to identify potential customers which can answer who are going to use their product/service? Are they male or female? Etc. It’ll allow the company to understanding existing customers. Market research determines the essential tools which adapts a business strategy for the best results. When a business like M&S conducts primary market research, they gather one of either two types of information; exploratory or specific. Exploratory research is an

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