Saturday, April 18, 2020
JD sports free essay sample
Describe the differences between primary and secondary market research. The difference between primary and secondary research mainly lies in the way in which the information is collected. Primary market research data is collected by observing the behaviour and opinions of consumers through questionnaires, experiments etcÃ¢â¬ ¦ Secondary market research relies on data that has already been collected whether it is by internal or external sources such as government census, trade associations or transaction records. Primary research tends to be more valuable as it is designed with a specific company aim in mind. Secondary research whilst potentially more cost efficient isnÃ¢â¬â¢t as reliable as it may be available to competitors or out of date. Use an example from the case study to explain the purpose of market research. The purpose of market research is to gain an understanding and awareness of consumer trends, competitor activity, possible future planning and the need to identify changes within a given sector. We will write a custom essay sample on JD sports or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page One way that companies conduct this research is via an exit survey with consumers before they leave the premises. Usually covering a cross section of stores exit surveys provide the ideal opportunity to obtain valuable face to face information and views from the consumers spread across various locations and regions. This helps assist with demographic variants within current trends, gives an idea of travelling distances and may potentially help to identify new locations for company expansion. Whilst conducting exit surveys it is possible to identify the reason for the visit to the store and why the consumer did or didnÃ¢â¬â¢t make a purchase. The company can then take this information and use it to help identify any possible changes in trends helping to provide sound planning strategies and gain an understanding of current consumer needs reducing any risk or uncertainty in the future. When used in conjunction with other forms of market research exit surveys can help to validate and support additional information that has been gathered. Analyse why market research should be viewed as an on-going process. Market research should be viewed as an on-going process in order for the company to keep up to date with the following information and also to ensure that current demand and future financial risk are secure and informed. Helps to see where you are in the market compared to competitors. Potential to diversify range into other areas. Gives consumer insight into the company. Helps with acquisition and expansion. Ability to build customer profiles. Build on existing customer base. Stay up to date with current trends. Evaluate how market research, if undertaken properly, adds value to the decisions made by a large company. Why does it help to reduce risk? If market research is undertaken properly it can add value to the decisions made within a company as it gives up to date well informed feedback. It can cover all aspects of the industry helping to meet current demands and foreseeing potential future changes. It can also help assist with growth and expansion plans and give an idea of where the company stands in the market compared to competitors. As a company JD was founded in 1981, it has grown both organically and inorganically in this time. JD employs a very proactive approach to market research which is evident in its success during a turbulent time within its industry. When market research is conducted properly it allows the company to collate the information gathered and use tools such as an Ansoff matrix to help assess the level of risk the company is facing. Without properly undertaken market research a company would not be able to understand the most important factors relevant to moving forward and would simply be guessing when considering any future plans.