1.1.2 Market Research

Question 1

What is Product orientation?

Answer 1

Product orientation is an inward looking approach

to new product development were the key focus is on what products can be made and the production process

Question 2

What does a business concentrate on with Product orientation?

Answer 2

The business will concentrate on producing high quality products and then later look to create a market for them

Question 3

What is Market orientation?

Answer 3

Market orientation is an outward looking approach

to new product development were the key focus is on what products the consumer wants

Question 4

What does a business concentrate on with Market orientation?

Answer 4

The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs

Question 5

What does Market orientation reduce the risk of?

Answer 5

Reduces, but does not eliminate, the risk of new product development

Question 6

What is Market research?

Answer 6

Market research is the collection and analysis of data and information to inform a business about its market

Question 7

What is the data collected in Market research used for?

Answer 7

identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour

Question 8

What is Primary market research?

Answer 8

It involves the collection of first hand data that did not exist before and therefore it is original data

Question 9

Secondary market research

Answer 9

It is research that has already been undertaken by another organisation and therefore already exists

Question 10

What are some examples of Primary market research?

Answer 10

Surveys and questionnaires I.e
Postal
Telephone
Face–to-face
On-line

In depth interviews I.e
Focus groups
Observations

Question 11

What are some examples of Secondary market research?

Answer 11

National and Local Government e.g. Office for National Statistics
Market Research organisations e.g. MORI, MINTEL
Professional bodies e.g. ACCA
Trade unions and Confederation of British Industry (CBI)
International bodies e.g. EU, OECD
Academic organisations e.g. universities
Newspapers and magazines
The Internet

Question 12

What is Qualitative data?

Answer 12

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

Question 13

What is Quantitative data?

Answer 13

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

Question 14

What are some limmitations of market research?

Answer 14

Past data and trends may not be a fair indication of the future

Accuracy of research findings

Dependent upon ability to correctly analyse findings

Financial and opportunity costs

Bias

Question 15

Why is a Sample usefull?

Answer 15

Businesses cannot ask for the opinions of all potential customers and therefore try to choose a representative sample

Question 16

What is a Sample?

Answer 16

A sample is a group of subjects that has been chosen from a larger group, the population, for investigation

Question 17

What does the value of a sample depend on?

Answer 17

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

Question 18

What does the Size of the Sample depend on?

Answer 18

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

Question 19

What are the three types of sampling?

Answer 19

Random
Quota
Stratisfied

Question 20

What is Random sampling?

Answer 20

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 21

What is Quota sampling?

Answer 21

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

Question 22

What is Stratisfied sampling?

Answer 22

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

Question 23

What 3 Uses does ICT have In market research?

Answer 23

collection and analysis of research data Via:
Websites
Socail networking
Databases

Question 24

What is Market Segmentation?

Answer 24

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

Question 25

What are the 4 different Segmentation Methods?

Answer 25

Demographic
Geographic
Income
Behavioural

Question 26

What is Demographic Segmentation?

Answer 26

Identifies subgroups of the population based on their demographic profile or characteristics

Question 27

What are the 7 different ways of Demographic Segmenttion?

Answer 27

Age
Gender
Level of education
Race
Religion
Family size
Stage in life e.g. empty nesters

Question 28

What is Geographical Segmentation?

Answer 28

Geographic segmentation defines market categories based on where people live e.g. regions, cities or neighbourhoods

Question 29

Why is Geographical Segmentation importent?

Answer 29

People in different geographical areas display different characteristics and needs e.g.

Question 30

What are the 6 groups of Income Segmentation?

Answer 30

A
B
C1
C2
D
E

Question 31

What is Income Segmentation?

Answer 31

Identifying subgroups of the market based on their levels of income and profession

Question 32

What is Behavioural Segmentation?

Answer 32

Characterises subgroups based on the behavioural patterns of the consumer rather than their characteristics

Question 33

What are some benefits of segmentation to companies?

Answer 33

Advertising can be targeted at specific market segments so that advertising spend is more effective

The most profitable and least profitable customers can be identified

Least profitable markets can be avoided

It becomes easier to identify new products