1.1.2 : Market Research

Question 1

Why is market research important ?

Answer 1

Because customers differ in :
The benefits they want
Amount they are able and/or willing to pay
Media they see
Quantities they buy
Time and place they buy

Question 2

What are the insights provided by effective market research ?

Answer 2

Dimensions of the market
Competitor strategies
Need, wants + expectations of their customers
Market segments - existing and potential opportunities for the market

Question 3

What is product orientation ?

Answer 3

Business develops products based on what it is god at doing

Question 4

What is marketing orientation ?

Answer 4

Business responds to customer needs and wants - designs products accordingly

Question 5

Why is market orientation crucial to marketing success ?

Answer 5

Markets are much more dynamic
Customers are becoming much more demanding
Barriers to market entry are getting lower

Question 6

What is primary research ?

Answer 6

Data collected first hand for a specific research reason

Question 7

What is secondary research ?

Answer 7

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

Question 8

What are the benefits of primary research ?

Answer 8

Directly focused too research objectives
Keep private
More detailed insights

Question 9

What are the drawbacks of using primary research ?

Answer 9

Time-consuming and costly to obtain
Risk of survey bias
Sampling may not be representative of

Question 10

What are the benefits of secondary research ?

Answer 10

Often free and easy to obtain
Good source of market insights
Quick to access and use

Question 11

What are the drawbacks of using secondary research ?

Answer 11

Can quickly become outdated
Not tailored to a business’s needs
Specialist reports often expensive to obtain

Question 12

What is quantitative research/data ?

Answer 12

Concerned with data and addresses questions such as how many, how often , who , when and where
Obtained through forms of surveys
Based on data

Question 13

What is qualitative research/data ?

Answer 13

Based on opinions , attitudes , beliefs and intentions
Answers questions such as why, would, and how.
Aims to understand why customers behave in a certain way
Focus groups and interviews

Question 14

What are the benefits of qualitative research ?

Answer 14

Essential for important new product development and launches
Focused on customer wants and needs
Can highlight issues that need addressing

Question 15

What are the drawbacks of qualitative data ?

Answer 15

Expensive to collect and analyse
Based around opinions - always a risk of samples not being representative

Question 16

What are the benefits of quantitative data ?

Answer 16

Data relatively easy to analyse
Numerical data provides insights into relevant trends
Can be compared with data room other sources

Question 17

What are the drawbacks of quantitative data ?

Answer 17

Focuses on data rather than explaining why these things happen
Doesn’t explain the reasons behind trends
May lack reliability if sample size and method is not valid

Question 18

What is sampling ?

Answer 18

Involves the gathering of data from a sample of respondents the results of which should be representative of the population

Question 19

What are the benefits of sampling ?

Answer 19

Even a small sample size can provide useful insights
Using sampling before making marketing decisions can reduce risks and costs
Is flexible and relatively quick

Question 20

What are the drawbacks of sampling ?

Answer 20

Biggest risk = sample is unrepresentative of population - leading to correct conclusions
Risk of bias in research questions
Less useful n market segments where customer tastes & preferences are changing frequently