1.1.2

Question 1

What is product orientation?

Answer 1

• An inward looking approach to new product development

- The key focus is on what products can be made and the production process

Question 2

What is Market orientation?

Answer 2

An outward looking approach to new product development

- The key focus is on what products the consumer wants

Question 3

What is market research?

Answer 3

The collection and analysis of data and information to inform a business about its market

Question 4

What 3 things is data collected and analysed used to do?

Answer 4

• Identify and anticipate customer needs and wants
• Quantify likely demand
• Gain insight into consumer behaviour

Question 5

What is primary market research?

Answer 5

The collection of first hand data that did not exist before and therefore is original data

Question 6

What is secondary market research?

Answer 6

Research that has already been undertaken by another organisation and therefore already exists

Question 7

Surveys and questionnaires, in depth interviews, focus groups and observations are all examples of which market research?

Answer 7

Primary market research

Question 8

Is newspapers and magazines an example of secondary market research?

Answer 8

Yes, as well as:

• National and Local Government
• Market Research organisations
• Professional bodies
• Trade unions and Confederation of British Industry
• International bodies
• Academic organisations
• The internet

Question 9

What is meant by ‘Qualitative research’?

Answer 9

The gathering of non-statistical information that gives a company indepth insight into the reasons for human behaviour

Question 10

What is meant by ‘Quantitative research’?

Answer 10

The gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons

Question 11

What is a sample?

Answer 11

A group of subjects that has been chosen from a larger group

Question 12

What 3 things will the value of sampling depend upon?

Answer 12

• The sample technique used
• How the sample was carried out
• The size of the sample

Question 13

What 3 things will the size of the sample depend upon?

Answer 13

• The budget available
• The importance of accuracy
• Degree of confidence in results

Question 14

What are the 3 types of sampling techniques?

Answer 14

• Random
• Quota
• Stratified

Question 15

What is the random sampling technique?

Answer 15

• A sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected

Question 16

What is meant by quota sampling?

Answer 16

This is where the population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup

Question 17

What is the stratified sampling technique?

Answer 17

The population is first segmented into subgroups before respondents are randomly selected from within that subgroup

Question 18

What is meant by ‘market segmentation’?

Answer 18

• Market segmentation occurs when the market is split into subgroups of consumers with similar characteristics

Question 19

What are the four segmentation methods?

Answer 19

• Demographic
• Geographic
• Income
• Behavioural

Question 20

What does demographic segmentation mean?

Answer 20

When subgroups of the population are identified based on their demographic profile or characteristics

Question 21

Is level of education an example of demographic profile?

Answer 21

Yes- as well as:

• Age
• Gender
• Religion
• Race
• Stage in life
• Family size

Question 22

What is Geographic segmentation?

Answer 22

When market categories are defined based on where people live

Question 23

What is income segmentation?

Answer 23

’ When subgroups are identified based on their levels of income and profession

Question 24

What are the 6 socio-economic groupings?

Answer 24

• A- higher managerial eg. Chief executives
• B- Intermediate managerial eg. solicitors
• C1- Supervisory, clerical or junior professional eg. teachers
• C2- Skilled manual eg. plumbers
• D- Semi and unskilled workers eg. window cleaners
• E- Pensioners, casual workers, students and unemployed

Question 25

Is ‘least profitable markets can be avoided’ an advantage of market segmentation

Answer 25

Yes