1.1.2 market research

Question 1

Product orientation

Answer 1

Business develops products based on what it is good at doing

Question 2

Market orientation

Answer 2

Business responds to customer needs and wants - designs products accordingly

Question 3

Primary market research

Answer 3

Involves the collection of first hand data by the business and is gathered for a specific purpose snd to match the exact needs for the business

Question 4

Benefits of primary market research

Answer 4

~ directly focused on research objectives

~ not publicly available and can therefore be a source of competitive advantage

~ provides more detailed insights, especially into customers views

Question 5

Drawbacks of primary market research

Answer 5

~ time-consuming and costly to obtain

~ risk of potential bias

~ sampling may not be representative

Question 6

Methods of primary research

Answer 6

~ surveys

~ observations

~ test marketing

~ interviews

~ focus groups and consumer panels

Question 7

Secondary market research

Answer 7

Involves the collection of second-hand data/data that already exists

Question 8

Benefits of secondary market research

Answer 8

~ often free and easy to obtain

~ good source of overall market insights

~ quick to access and easy to use

Question 9

Drawbacks of secondary market research

Answer 9

~ not specific to the needs of the business

~ often out of date

~ available to other businesses

Question 10

Methods of secondary research

Answer 10

~ market research reports such as MINTEL

~ online sources such as Statista

~ government data from the Office of National Statistics

~ trade publications

Question 11

Quantitative market research

Answer 11

Concerned with and based on data

Question 12

Benefits of quantitative market research

Answer 12

~ data is relatively easy to analyse

~ numerical data can provide insights into trends

~ can be compared with data from other sources

Question 13

Drawbacks of quantitative market research

Answer 13

~ focuses on data as opposed to why something happened and therefore doesn’t explain the reasoning behind trends

~ may lack reliability if sample size and method is not valid

Question 14

Qualitative market research

Answer 14

Based on opinions, attitudes , beliefs and intentions

Question 15

Benefits of qualitative market research

Answer 15

~ essential for important new product development and launches

~ provides crucial insights into consumer behaviour

~ an effective way for testing elements of marketing mix

Question 16

Drawbacks of qualitative market research

Answer 16

~ expensive to collect and analyse often requiring specialist research skills

~ based around opinions and there is always a risk that the sample is not representative

Question 17

Sampling

Answer 17

Involves the gathering of data from a selection of respondents, the results of which should be representative of the population as a whole

Question 18

Benefits of sampling

Answer 18

~ provide useful research insights if it is representative

~ can reduce risk and costs before a decision

~ flexible + relatively quick

Question 19

Drawbacks of sampling

Answer 19

~ incorrect conclusions and decisions can happen if unrepresentative of the population

~ risk of interviewer, question and respondent bias

~ less useful in dynamic markets

Question 20

Use of ICT to support market research

Answer 20

~ websites

~ social networking

~ databases

Question 21

Market segment

Answer 21

Involves dividing a market into different groups that reflect different customer needs snd wants

Question 22

Traditional ways of segmenting

Answer 22

~ age

~ gender

~ income

~ hobbies + interests

~ location

~ culture + ethnic origin

~ occupation

~ lifestyle

Question 23

Benefits of market segmentation

Answer 23

~ focuses resources on parts of a market where the business can succeed

~ allows a business to grow share in markets

~ helps with new product development

~ helps make the marketing mix more efficient

Question 24

Drawbacks of market segmentation

Answer 24

~ data about each market segment is not always available, up to date or reliable

~ just because you can identify a segment doesn’t mean you can reach the customers in it

~ markets are increasingly dynamic and fast-changing + so are the segments