2 - Market research

Question 1

What is market research?

Answer 1

Gathering data about the market

Question 2

What is the use of market research?

Answer 2

product development
budgeting
sales forceasting ect

Question 3

What is primary research?

Answer 3

Information collected internally

Question 4

Give an example of primary research

Answer 4

questionnaires
focus groups
interviews
observations

Question 5

What is secondary research?

Answer 5

Data that already exists, conducted by another organisation

Question 6

Given an example of secondary research

Answer 6

Annual reports
Internet sites
Government publications

Question 7

What are the benefits of Primary research?

Answer 7

specific to the business
up to date and reliable

Question 8

What are the drawbacks of primary research?

Answer 8

time-consuming
costly
difficult to conduct large samples

Question 9

What are the benefits of Secondary research?

Answer 9

easily acsessible
fast

Question 10

What are the drawbacks of secondary research?

Answer 10

not always up to date or accurate
in-depth studies are costly, the free data is often not in depth

Question 11

What is quantitative data?

Answer 11

stats and figures like sales and market reports

Question 12

What is qualitative data?

Answer 12

attitudes and intentions like interviews

Question 13

What are the limitations of market reserach?

Answer 13

Can often be biased
time consuming
Small samples limit reliability

Question 14

what is market segmentation?

Answer 14

dividing customers in a speciifc market into groups based on their characteristics

Question 15

what is the use of market segmentation?

Answer 15

identify and satisfy the needs of a specific group
focuses business activity
builds brand loyalty

Question 16

What is product oreintatioin?

Answer 16

When a business is product orientated they are focused on the production process and the product itself - believing that that is what the customer will want

Question 17

What is market orientation?

Answer 17

When a business is market orientated they follow trends in a market and follow closely the needs and wants of the consumer

Question 18

What dictates if a business is market-orientated or product orientated?

Answer 18

the kind of product
policy decision s
opinions of business leaders
nature and size of the market number of competitors

Question 19

What is market segmentation?

Answer 19

When markets are divided into segments, made up of consumers with similar needs.

Question 20

What is georgraphical segmentation?

Answer 20

when a customer may have a different need based on where they live

Question 21

What is demographic segmentation?

Answer 21

dividing consumers based on -
age
sex
income
social class

Question 22

What is psycological segmentation?

Answer 22

segmenting people based on their lifestyle, opinions and attitude

Question 23

What is an example of psycological segmentation?

Answer 23

when newspapers are tailored for labor voters over conservatives ext

Question 24

What is behavioural segmentation?

Answer 24

where customers are grouped based on how they relate to products

Question 25

How are people grouped under behavioural segmentation?

Answer 25

usage rate - the quantity and frequency f their purchase
loyalty - product loyalty, Tesco clubcard ect
time and date of consumption - cereal businesses know they may only be eaten in the morning so encourage people to eat at night also