1.1.2 market research

Question 1

product orientation

Answer 1

the product is the most important factor when providing products for a market

Question 2

market orientation

Answer 2

the consumer is the most important factor when providing products for the market

Question 3

two categories of market research

Answer 3

primary research
secondary research

Question 4

primary research

Answer 4

data collected first hand for a specific research purpose

Question 5

secondary research

Answer 5

data that already exists and which has been collected for a different purpose

Question 6

why would a business collect data?

Answer 6

to assess potential demand for a product or service.
see which promotions would best suit a launch of the product or service.
assess the competition.
to build a customer profile

Question 7

benefits of researching a market

Answer 7

for decision making, reduces risk and cost of making poor decisions.
to develop a marketing plan based on data gathered about the 4ps.
to react to and prepare for changes in the market.
to become market orientated

Question 8

primary research methods

Answer 8

questionnaire / survey
interviews
observation
loyalty cards
focus groups
consumer panels
test marketing

Question 9

questionnaire / survey

Answer 9

may include a survey of customers who use the business.
a business can gather quantitative and qualitative data in this method.
can be used to measure customer satisfaction

Question 10

interview

Answer 10

may carry out interviews with either the owner, customers or suppliers.
will gauge reactions to new tastes or ideas the business has.
will be specific to the needs of the company

Question 11

observation

Answer 11

a business may choose to gather data from observation of buyer

Question 12

loyalty cards

Answer 12

purchases on store cards can be used to track consumer buyer behaviour and further micro market to customers specific offers

Question 13

focus groups

Answer 13

a group pf target market demographic respondents are chosen to take part in a product trial.
may use the product over time and then get together to discuss their thoughts.
gives the business specific qualitative information

Question 14

consumer panel

Answer 14

a group of experts who have been selected by an agency to answer a series of responses to questions about a product or service.
usually independent experts rather than being members of the general public.

Question 15

test marketing

Answer 15

a business may invent, produce or buy in a new product.
all staff in the business may agree these are good products, but need to know if the wider public will need to know if the wider public will buy them.
product is offered to a carefully chosen sample

Question 16

secondary research methods

Answer 16

annual reports
internal data
government sources
news
trade journals
specialist organisations publications.
eu and international sources

Question 17

annual reports

Answer 17

may be useful for a business to look at their previous annual reports or even those of their competitors.
includes a balance sheet and profit and loss statement

Question 18

internal data

Answer 18

a business may have collected a wealth of data over a number of years of trading.
sales figures are very useful for forecasting future sales

Question 19

government sources

Answer 19

information can be used to make decisions

Question 20

news

Answer 20

businesses considering launching a new product or even looking for new markets for the old product, may turn to news or media for help

Question 21

trade journals

Answer 21

cater to a very specialist market.
information on competitor activity such as promotions.
news specific to the industry

Question 22

specialist organisation publications

Answer 22

mintel trends and reports.
constantly assess change in culture, economy and society.
reports cost £1000 - £3000

Question 23

eu and international sources

Answer 23

world trade organisation works at lowering trade barriers, tariffs and quotas between countries.
International Monetary Fund is an organisation of 188 countries who work to foster global monetary cooperation.

Question 24

quantitative data

Answer 24

involves gathering data and measuring responses.
data displayed in charts

Question 25

qualitative data

Answer 25

seeks to gather and explore feelings and thoughts about a product from consumers

Question 26

limitations of market research

Answer 26

research carried out did not give enough information.
data is inaccurate or misleading.
data is non-specific to the organisation

Question 27

market segmentation

Answer 27

an identifiable group of individuals where consumers share one characteristic or need

Question 28

market segmentation - social class

Answer 28

upper class - professionals
middle class - other professionals
lower middle class - skilled non-manual workers
skilled working class - trained skilled workers
working class - unskilled manual workers
unskilled / unemployed - those on state benefits