Methods of Market Research (AQA GCSE Business)
Revision Note
Primary Market Research
Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, etc
This research gathers information which is new and does not already exist in any format
The most commonly used methods of primary market research include surveys, interviews based on questionnaires, observation, focus groups and test marketing
Businesses usually carry out primary research with a sample of the target market in which they are interested
A sample is a group of respondents that reflects the characteristics of the target market as a whole
The larger the sample size, the more likely it is that research results will reflect the views of the target market as a whole
A business will often use more than one method of primary research in order to build up a reliable understanding of the market
The data can then be analysed and used to make data-led judgements such as how much to charge for a new product and where to sell it
Methods of Primary Research
Method | Explanation |
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Surveys |
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Observation |
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Interviews |
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Focus groups |
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Primary market research should be able to answer many of the specific questions businesses have about their customers, competitors and market conditions
However, it can be costly to conduct
Small businesses are likely to be limited on the type and scale of primary research they conduct
Evaluating Primary Market Research
Advantages | Disadvantages |
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Secondary Market Research
Secondary research involves the collection, compilation, and analysis of data that already exists
Diagram: Secondary Research Sources
Businesses can consult a wide range of secondary sources to gather market research data
Diagram explanation
Government publications
National governments and trading blocs such as the EU publish reports and statistics on topics such as the economy, demographics, industry trends and consumer behaviour
Academic institutions
Universities and research institutions conduct studies and publish research papers which provide valuable insights and data on specific industries, consumer behaviour and market trends
E.g. Stanford University is a globally significant research centre for engineering and medicine
Industry associations
Trade associations and industry-specific organisations provide detailed information about specific sectors, including market size, growth rates and industry benchmarks
E.g. The International Organisation of Motor Vehicle Manufacturers conducts and collates research on production and sales statistics
Specialist market research reports
Companies specialising in market research produce and sell in-depth reports on various industries, markets and consumer trends
E.g. Mintel is one of the leading private companies supplying market research information
Financial reports
Public limited companies are required to publish annual reports which can provide valuable information about a company's performance, market position and future plans
Online databases
There are various online databases and research platforms that provide access to a wide range of secondary market research
E.g. Statista and Euromonitor International make a large volume of data on international commerce available
Media sources
Newspapers, magazines and online publications often contain articles, opinion pieces and investigative reports that can offer insights into market trends, consumer behaviour and industry developments
E.g. The Financial Times and the Wall Street Journal
Businesses must weigh up the reliability of secondary market research
Aspects such as cost, relevance and availability of data will affect the decision on which secondary data to use
Evaluating Secondary Market Research
Advantages | Disadvantages |
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Choosing Appropriate Market Research Methods
Businesses often use a combination of different market research methods to gain a comprehensive understanding of the market, consumers, and competition
Their choice of market research methods depends on a range of factors, including:
1. The research objectives
If a business wants to gather in-depth insights and understand consumer motives, qualitative methods like focus groups or in-depth interviews may be the most suitable
If the business simply wants to measure market size, identify consumer preferences, or measure market trends, quantitative methods like surveys or data analysis may be more appropriate
2. Target audience
The geographic location and how easy it is to communicate with the target market can influence the choice of research method
If the target audience is spread across a wide geographical area, online surveys or phone interviews may be more practical than in-person focus groups or face-to-face surveys
3. Level of detail required
Qualitative methods like interviews provide detailed insights but are more time-consuming and expensive to carry out
Quantitative methods like surveys can cover a larger sample size but may lack the depth of qualitative methods
4. Resources
Businesses with limited budgets may not be able to afford very detailed research
Those requiring market research quickly or have limited human resources to carry out research may only be able to access secondary market research
5. The nature of the product
Testing a physical product may require in-person focus groups or product trials
Researching a service or digital product may be better suited for online surveys or beta testing
Examiner Tip
You may be asked to analyse the benefits of carrying out market research for a particular business. In these 6-mark questions, you need to ensure that your chain of argument includes repeated reference to the business context.
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