4.1 Market Research

Question 1

What is the purpose of market research?

Answer 1

1. to identify and understand customer needs
2. to identify gaps in the market
3. to reduce risks
4. to inform business decisions
   
   1. what and who to produce for

Question 2

What are the methods of research?

Answer 2

1. Primary Research
2. Secondary Research

Question 3

What are the methods of primary research?

Answer 3

1. Surveys
2. Questionnaires
3. Focus Groups
4. Observation
5. Test Marketing

Question 4

What are the methods of secondary research?

Answer 4

1. Internet
2. Market Reports
3. Government Reports

Question 5

What are the advantages and disadvantages of using surveys?

Answer 5

Advantages:

1. Interviewing can be explained
2. honesty and be detected
3. postal surveys are cheaperr
4. can contain bias because posted to targeted demographic

Disadvantages:

1. Data takes time to be processed
2. answers may not be genuine
3. survey can be entirely ignored

Question 6

What are the advantages and disadvantages of using Focus groups?

Answer 6

Advantages:

1. communication is immediate
2. results can be immediately taken

Disadvantages:

1. It only has few people, cannot represent entire market
2. takes time to find people
3. no numerical data is taken - no statistical analysis

Question 7

What are the advantages and disadvantages of using observation?

Answer 7

Advantages:

1. Actions are more accurate than words
2. Can check quality of a service

Disadvantages:

1. Regular people, not trained
2. No opportunity to ask why

Question 8

What are the advantages and disadvantages of using test markets?

Answer 8

Advantages:

1. Feedback can be taken from consumers
2. cost of issues minimized to small section of market

Disadvantages:

1. Takes time
2. expensive

Question 9

What are the advantages and disadvantages of using the internet?

Answer 9

Advantages:

1. Data is cheap and fast to get
2. A lot of data

Disadvantages:

1. Hard to filter
2. Out of date

Question 10

What are the advantages and disadvantages of using Government research?

Answer 10

Advantages:

1. Data is related to country
2. supportive of businesses
3. Information publicly available

Question 11

What are the advantages and disadvantages of using market reports?

Answer 11

Advantages:

1. Get specific data done by professionals
2. Complete

Disadvantages:

1. Expensive

Question 12

What is the difference between qualitative and quantitative data?

Answer 12

Quantitative is numerical data it can be used for statistical techniques

Qualitative data is worded, for opinions and feedback