1.1.2 Market Research

Question 1

3 reasons for market research

Answer 1

• needs/wants
• demand
• consumer behaviour

Question 2

primary market research

Answer 2

-finding & collection of first hand data that did not exist

Examples;

• surveys/questionnaires
• interview
• focus groups
• observations

Question 3

secondary market research

Answer 3

-finding/collecting info that already exists

examples;

• national/local government
• professional bodies
• newspapers and magazines
• internet
• government produced data

Question 4

4 ADV and 4 DIS of primary research

Answer 4

ADV
1-up to date
2-tailored to business needs(research obj)
3-rivals no access to data
4-asses customer psychology

DIS
1-expensive/time consuming
2-certain skills (focus groups)
3-risk of bias
4-useful if compared to existing data

Question 5

4 ADV and 4 DIS of secondary research

Answer 5

ADV
1-quick and available
2-free or very cheap
3-good overview of market
4-based on actual sales figures/research on large scale

DIS
1-out of date = inaccurate
2-rivals can access this data
3-not tailored to own needs
4-expensive to buy reports

Question 6

Quantitative research

Answer 6

based upon numerical data, measures things = statistical info

• based on larger samples = statistically valid
• survey (forms) various - telephone, online

key aspects

1. sampling
2. unbiased questionnaire
3. assess validity of results

Question 7

Qualitative research

Answer 7

research focused on obtaining in depth detailed info feelings, attitudes, opinions (identify why consumers behave how they do, how they feel about product)

• focus groups (reveal problem & consumer psychology)
• depth interviews (avoid swaying opinion)
• conducted by psychologists

Question 8

ADV and DIS of quantitative research

Answer 8

ADV

• easier to analyse
• cheaper to collect
• interpretation accessible
• insight to relevant trends
• can be compared with data from other source

DIS

• not as detailed
• number don’t provide context
• may lack reliability

Question 9

Market orientation

Answer 9

Focusing on what the consumer wants from the product

Question 10

ADV and DIS of being market orientated

Answer 10

ADV
1-produce = customers want to buy
2-competitive advantage
3-brand loyalty
4-word of mouth marketing
5-charge higher price

DIS
1-changing consumer trends (needs to be updated)
2-time consuming and costly

Question 11

Product orientation

Answer 11

Focusing just on the product

Expecting the consumer to just buy it

Question 12

ADV and DIS of production orientation

Answer 12

ADV:

• less likely to have to conduct market research
• spend money on R&D
• more innovative
• harder for rivals to copy

DIS:
-unsuccessful products - well established markets