Market research provides the information a business needs to identify customer needs, assess competition, reduce risk and make informed decisions. The data gathered is used to shape the four Ps of the marketing mix – product, price, place and promotion – and to minimise business risk.
Primary vs. secondary research
Primary research (primary data) – collection of fresh, original data that has not been gathered before. It is tailored to the specific question a business wants to answer.
Limitations of primary research: time‑consuming, relatively costly, and often suffers from low response rates or non‑response bias.
Secondary research (secondary data) – use of data that already exists.
Typical sources:
Published statistics (e.g., ONS, World Bank)
Company reports, annual accounts
Internet sites, trade journals, newspapers
Market‑research reports from agencies
Advantages: cheap, quick, wide coverage.
Disadvantages: may be out‑of‑date, not specific to the business, possible reliability issues.
When to use: at the start of a project to gain background information; to complement primary data.
Sampling and representativeness
Both primary and secondary research rely on a sample that accurately reflects the target population.
Define the target population – e.g., 18‑25‑year‑old urban shoppers.
Choose a sample size – larger samples reduce sampling error and increase reliability, but cost more and take longer.
Select a sampling method:
Random sampling – every member has an equal chance of selection.
Stratified sampling – population divided into groups (e.g., gender, income) and sampled proportionally.
Convenient sampling – easiest to reach (e.g., shoppers in one store).
Check for bias – ensure the sample reflects the whole market to improve accuracy.
Factors influencing the accuracy of market‑research data
Factor
Effect on accuracy
Relevant method(s)
Question wording
Leading or ambiguous questions produce misleading answers.
Questionnaires, Interviews, Focus groups
Respondent bias
Social desirability or fear of judgement can distort answers.
Interviews, Focus groups, Face‑to‑face surveys
Interviewer bias
Researcher’s tone, body language or phrasing influences responses.
Interviews, Focus groups
Non‑response / low response rate
Reduces sample size and may make the sample unrepresentative.
Questionnaires / Surveys
Observer effect
People change behaviour when they know they are being watched.
Observation (especially non‑participant)
Data‑entry / processing errors
Incorrect coding or transcription leads to inaccurate results.
All methods that require manual handling of data
Digital & online techniques
Online surveys & e‑mail questionnaires – fast distribution, automatic data capture.
Mobile‑app surveys – reach respondents on smartphones; can include push notifications.
Social‑media listening – monitors comments, hashtags and trends to gauge public opinion.
Web analytics – tracks visitor behaviour on a website (pages viewed, click‑through rates).
Eye‑tracking & heat‑maps – visualise where users look on a screen or in a store layout.
Primary research methods
Questionnaires / Surveys
Definition: A set of written (or digital) questions designed to obtain information from a large number of respondents.
Typical formats: Paper questionnaires, online surveys, telephone surveys, e‑mail questionnaires.
Advantages:
Can reach a large sample quickly.
Relatively low cost, especially when online.
Easy to analyse with statistical software.
Respondents can answer at their own pace.
Disadvantages:
Low response rates may affect reliability.
Limited depth – mainly closed‑ended questions.
Misunderstanding of questions can lead to inaccurate data.
When to use: When quantitative data from a broad audience is needed (e.g., measuring customer‑satisfaction levels, estimating market size).
Interviews
Definition: A one‑to‑one conversation where the researcher asks open‑ended questions and records the responses.
Types of interview formats (required by the syllabus):
Structured – fixed set of questions.
Semi‑structured – guided but flexible.
Unstructured – free discussion.
Advantages:
Provides detailed, qualitative information.
Allows clarification and probing for deeper insight.
Builds rapport, encouraging honest answers.
Disadvantages:
Time‑consuming and costly.
Small sample size may limit generalisation.
Interviewer bias can influence responses.
When to use: When exploring attitudes, motivations or complex issues (e.g., product‑development ideas, employee satisfaction).
Focus groups
Definition: A moderated discussion with a small group (6‑10) of participants who share similar characteristics.
Purpose: To generate ideas, test concepts and explore reactions in a dynamic setting.
Advantages:
Encourages interaction, revealing group dynamics.
Quick way to gather diverse opinions.
Can uncover unexpected insights.
Disadvantages:
Dominant participants may skew results.
Not suitable for highly sensitive topics.
Requires a skilled moderator and suitable venue.
When to use: When testing advertising concepts, new product ideas or understanding consumer perceptions.
Observation
Definition: Systematic watching and recording of people’s behaviour in natural or controlled settings.
Types:
Participant observation – researcher takes part in the activity.
Non‑participant observation – researcher watches without involvement.
Advantages:
Captures actual behaviour rather than reported behaviour.
Useful for studying processes (e.g., store‑layout effectiveness).
Can be conducted covertly, reducing respondent bias.
Disadvantages:
Time‑intensive and may require special equipment.
Observer’s presence can influence behaviour (observer effect).
Limited to observable actions; thoughts and motivations remain hidden.
When to use: When analysing customer buying patterns, service delivery or workplace efficiency.
Suggested diagram: Flowchart of the steps in a primary market‑research project – defining objectives, selecting a method, designing tools, sampling, collecting data, analysing results, and making decisions.
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