It is important to establish consumers' needs before launching a new product. A business conducts market research to help identify gaps in the market and business opportunities.
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Sampling is the process of creating a small unbiased population to be used in a test or experiment. The sample removes the impractical idea of surveying everyone in a market or a population.
Random sampling is when a sample is created by chance. It is the luck of the draw.
Random sampling does not target any specific
close market segment A group of people who share similar characteristics and buying habits. . The people to be included in the sample are generated at random. This could be done by using a computer program or taking names from a list or telephone book.
| Advantages | Disadvantages |
| Less chance of bias as respondents are chosen at random | The sample may not truly reflect the target market |
| Simple and quick to select sample | It can be expensive as a large sample is required |
| Advantages | Less chance of bias as respondents are chosen at random |
|---|---|
| Disadvantages | The sample may not truly reflect the target market |
| Advantages | Simple and quick to select sample |
|---|---|
| Disadvantages | It can be expensive as a large sample is required |