3.2 Market Research

2026 Syllabus Objectives

By the end of this topic, you should be able to:

  1. Explain what a market-oriented business is and how it uses market research
  2. Describe primary and secondary research, including the benefits and limitations of each
  3. Identify and explain methods of primary research (e.g. questionnaires, online surveys, interviews, focus groups)
  4. Explain why sampling is needed and describe methods of sampling
  5. Identify and explain methods of secondary research (e.g. online sources, government sources, commercial reports)
  6. Discuss the factors that affect how accurate market research data is
  7. Analyse market research data shown in graphs, charts, and diagrams, and draw simple conclusions from it

3.2.1 The Role of Market Research and Methods Used

https://cambridgeassistant.com

What Is Market Research?

Market research is the process of gathering, analysing, and interpreting information about a market. In simple terms, it means finding out what customers want, what they are willing to pay, and how they behave — before spending money on a product.

Without market research, a business could spend a lot of money developing a product that nobody wants to buy. This could lead to serious financial losses or even business failure.

Market research helps a business answer key questions such as:

  • Would customers want to buy my product?
  • What price would they be willing to pay?
  • Where would they prefer to buy it from?
  • What features do they like or dislike?
  • Who are my typical customers?
  • What type of advertising would work best?

Market-Oriented Businesses

Businesses can be divided into two types based on how they approach their products:

Product-oriented businesses focus on the product first. They design and create a product and then try to find customers for it. This approach can work for basic necessities or highly innovative products, but it carries more risk because the business doesn't know if people actually want what it makes.

Market-oriented businesses do things the other way around. They first carry out market research to find out what customers want, and then they develop a product to meet that need. This approach is generally more successful because the business is producing something it already knows people want.

Market research is essential to a market-oriented business. It helps the business:

  • Reduce the risk of launching a new product that fails
  • Understand what customers need and want now and in the future
  • Understand how consumers behave (what they buy, when, and why)
  • Find out how much customers are willing to pay
  • Spot gaps in the market — areas where customer needs are not yet being met
  • Learn about competitors and their strengths and weaknesses
  • Make better decisions about how to use resources and develop its marketing strategy

Key idea: Ongoing market research is just as important as research done before a launch. Customer tastes change over time, so businesses must keep researching to stay relevant.

Sign in to view full notes