Question

Where are the data for marketing research obtained?

Give examples of internal and external data

Give examples of internal and external data

Answer 1

market research enables a company to know about their potential customer and their preferences for their products and services.

there are 2 types of resources for conducting market research:

1. Internal resources: "internal" refers to the internal resources within the organisation. it is easy to collect information within the organisation and it takes less time to collect as information is easily available. for example balance sheet, profit&loss, expenditure, transportation cost, etc.

2. external resources: they need thorough and detail investigation from external resources. external resources are divided into 2 categories:

a. primary data: it is collected first hand by investigators from primary resources and it has a predetermined  purpose of collecting data. this takes a lot of time and costly. primary data s reliable data. it is collected form dealers, customers and salesmen. for primary data collection, we will able to create a direct link between producer and consumers. collecting data form salesmen and dealers, we will able to know about competitors and preferences of customers. taking feedback from consumers will help in improving products or services and also help to build a relationship with customers.

b. secondary data: this data is collected from already existing data such as publishers, journals, govt. data, newspapers, etc. secondary data can e incomplete and unreliable. it saves cost and time.