IS MARKET RESEARCH IMPORTANT FOR BUSINESS ?

Market Research is the systematic collection of informations on customers and competitors .
There are 2 types of market research a business used . Those are :

  1. Primary Market Research
  2. Secondary Market Research

1. Primary Market Research

Primary Market Research is also known as Field Market Research . In this market research the marketer go on the market to collect informations which signifies that the business have direct contact with the customers .

The informations collect from primary market research are in 2 forms , those are
Quantitative and Qualitative date . Quantitative data is expressed by numerical term and qualitative is the opinion and judgment .

Why is Primary market research important for a business ?

  1. Using this type of market research help the business to get up to date informations about consumers wants and needs .
  2. The informations collected will be confidential to the business only .
  3. The information will be more accurate .

However there also some disadvantages associated with the primary market research these are :
  1. Primary research tend to be more time consuming
  2. Bias information may be collected
  3. It can be more costly

2. Secondary Market Research

This type of market research is also know as "Desk Market Research" . It is the collection of existing information which is known as second hand informations . There are 2 type of secondary market research , these are the internal and external market research . In the internal market research the business take existing information from the business itself and in the external the business take information outside the business for example from the Internet .


Why is Secondary market research important for a business ?

  1. Newly set up business can used this type of research as it is less costly .
  2. Less time consuming .
  3. Can make comparison as there is different source of information .
However there also some disadvantages associated with the secondary market research these are :
  1. Informations are outdated
  2. Information available is not confidential as competitors also can get access
  3. Informations are not accurate

Credit : BI


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