3.3.2

Question 1

What are the 5 stages in the market research process?

Answer 1

1. Define problem/question
2. Develop market research plan
3. Collect data
4. Analyse data
5. Interpret and report findings

Question 2

What are 4 positives of primary and secondary market research?

Answer 2

Primary

1. Specific to the need
2. More up to data and reliable
3. Sampling saved money
4. Better for qualitative data

Secondary

1. Easily accessible and good starting point
2. Better for quantitative data
3. Fast and less time consuming
4. Cheaper

Question 3

What are 2 negatives of primary and secondary market research?

Answer 3

Primary

1. More time consuming and costly
2. Hard to get a large sample size

Secondary

1. Some free, detailed reports can be expensive
2. Not always up to data or relevant.

Question 4

What is market mapping?

Answer 4

Compares competitors together in a market.

Question 5

What are 2 positives about market mapping?

Answer 5

1. Helps find gaps in the market

2. Useful process for market positioning

Question 6

What is a negative about market mapping?

Answer 6

Only takes into account two main variables

Question 7

What are the 3 correlations?

Answer 7

1. Positives
2. Negatives
3. No correlation

Question 8

What are the 2 strengths of correlations?

Answer 8

1. Strong

2. Weak

Question 9

What are 2 positives of sampling?

Answer 9

1. Quicker and easier

2. The bigger the sample the more representative the data is

Question 10

What is a confident level?

Answer 10

An indication of accuracy

Question 11

What is a confidence interval?

Answer 11

The possible range of outcomes for a given confidence. The narrower the interval, the lower the level.

Question 12

What is extrapolation?

Answer 12

Predicting future trends

Reliable when conditions stay the same

Question 13

What is PED? Definition and Calculation

Answer 13

Price elasticity of demand

% change in quantity demanded / % change in price

Question 14

What is IED? Definition and Calculation

Answer 14

Income elasticity of demand

% change in quantity demanded / % change in customer income

Question 15

What 4 factors influence elasticity?

Answer 15

1. Number of competitors
2. Relative cost of switching to another product
3. Necessity of product
4. Value of brand

Question 16

What happens to demand and revenue a product is price/income elastic and prices increase?

Answer 16

Bigger % decrease in demand

Revenue falls

Question 17

What happens to demand and revenue a product is price/income elastic and prices decrease?

Answer 17

Bigger % increase in demand

Revenue rise

Question 18

What happens to demand and revenue a product is price/income inelastic and prices increase?

Answer 18

Smaller % decrease in demand

Revenue rises

Question 19

What happens to demand and revenue a product is price/income inelastic and prices decreases?

Answer 19

Smaller % increase in demand

Revenue falls

Question 20

How is market size expressed?

Answer 20

Units sold or value

Question 21

What is the calculation for market share?

Answer 21

(Total company sales / total market sales) x 100

Question 22

What is the calculation for market and sales growth?

Answer 22

(Increase in market size or sales (the difference) / original size or sales) x 100

Question 23

What are the 7 uses of market research?

Answer 23

1. Product development
2. Budgeting
3. Production forecast
4. Sales forecasting
5. Developing marketing activities
6. Workforce forecast
7. Cash flow forecasting