Business

Question 1

Outline 3 reasons why an organisation would target specific customers

Answer 1

• Less time consuming to carry out market research
• Product can be designed to meet specific needs of target market
• Advertising and promotions can be designed for target market
• Price can be more accurately set to reflect the particular target market
• ensures a suitable place is chosen where target market will buy product

Question 2

Define Field research

Answer 2

This Involves finding out information first hand (Primary Information) directly from the public/consumer

Question 3

Outline the advantages of field research

Answer 3

• Information is gathered specific to your purpose
• Information is up-to-date

Question 4

Outline the disadvantages of field research

Answer 4

It is more expensive to gather compared to desk research
- It is more time consuming to gather compared to desk research
- People may not always give truthful answers in response to questions

Question 5

Define desk research

Answer 5

This uses secondary information which has already been gathered for another purpose, either from inside or outside the business

Question 6

Outline the advantages of desk research

Answer 6

• It is cheaper to access existing information rather than having to collect information from scratch
• It is easier to obtain by looking in a newspaper or on a website as the research has already been carried
• Decisions can be made quickly as the information already exists

Question 7

outline the disadvantages of desk research

Answer 7

• Information may be out of date as it may have been collected a long time ago and so may not be relevant
• Information is available to competitors making it harder to find a competitive edge
• The information may not be as useful as the research has been carried out for a different purpose

Question 8

Describe a personal interview

Answer 8

A face-to-face discussion between a trained interviewer and a respondent which can take place in the street or at home

Question 9

Describe a telephone survey

Answer 9

People are contacted by telephone and asked to answer a range of questions

Question 10

Describe a postal survey

Answer 10

A list of questions is sent to people through the post. They will complete the survey and send it back to the business

Question 11

Describe an online survey

Answer 11

People answer a number of questions that are displayed on a website. Respondents may have to click an appropriate answer and/or type in comments

Question 12

Describe a focus group

Answer 12

A selected group of people is gathered to take part in a discussion about a product. their opinions are obtained on the design, colour, shape etc and what they like and dislike about the product

Question 13

Describe the social networking sites

Answer 13

Businesses can set up social media accounts (eg Facebook, twitter) in order to interact with customers around the world to find out their reactions and opinions on different issues

Question 14

Outline 1 advantage and disadvantage of a Personal Interview

Answer 14

+ Allows two-way communication so any points can be clarified
+ The researcher can encourage the respondent to answer certain questions
+ Body language and facial expression can be observed

• It is a costly method of research as interviewers need to be trained
• It’s very time consuming as only one respondent can be interviewed at any one time

Question 15

Outline 1 advantage and disadvantage of a telephone survey

Answer 15

+ Information is obtained immediately
+ Any points can be clarified by the researcher

• Many people will not want to speak to a researcher over the phone and so many calls will need to get a large number of responses

Question 16

Outline 1 advantage and disadvantage of a postal survey

Answer 16

+ Cost effective way of sending a survey to a large number of people over a large geographic area
+ people can complete their survey at their own pace when it suits them

• The response rate may be very low
• There is no opportunity for the respondent to clarify anything they don’t understand

Question 17

Outline 1 advantage and disadvantage of an online survey

Answer 17

+ A link to website can be sent to a large number of people all over the world
+ Computer software can automatically collate and display results in real time

• Relies on respondents having access to the internet
• No personal contact with business to clarify any misunderstandings

Question 18

Outline 1 advantage and disadvantage of a focus group

Answer 18

+ Opinions, feeling and attitudes can be gained
+ follow up questions can be asked ad points can be clarified

• The sample of people used may not represent the views of the whole population
• Financial incentives may be needed to encourage people to take part.

Question 19

Outline 1 advantage and disadvantage of a Social networking website

Answer 19

+ two-way communication can occur between the business and the customer
+ Large number of people can be reached
+ Questions can be answered very quickly

• Customers may not want to join social networking websites
• Information is not usually private so can be viewed by anyone

Question 20

Outline the first 3 stages of product development

Answer 20

Generate the idea - Coming up with ideas following market research

Analyse the idea - considering the different options and picking the best one

Produce a prototype - making the model/early version of your product

Question 21

Outline the last 3 stages of product development

Answer 21

Test the product - Carry out safety tests and also carry out marketing research with customers for feedback

Alter the product - make necessary changes following testing

Produce the product - start production of the product

Question 22

Describe a brand

Answer 22

A Brand is a logo, name or symbol that is given to a product that makes it instantly recognisable

Question 23

Outline the advantages of branding

Answer 23

• Higher prices can be charged for branded products
• Brand generate “Brand loyalty” and mean greater sales
• Brand are perceived to be higher of quality
• Brands are instantly recognisable
  Brands reduce the need for advertising
• Brands make it easier for a business to launch a new product under the same brand name as they are perceived to be of a high standard and reliable

Question 24

Outline the disadvantages of branding

Answer 24

• If a product within the brand develops a poor reputation it can damage the whole brand name
• Establishing a brand is time consuming, lengthy and expensive process

Question 25

Identify the 4 stages of product life cycle

Answer 25

Introduction
Growth
Maturity
Decline

Question 26

Describe the Introduction stage of the product lifestyle

Answer 26

• The product is launched onto the market
• The product is heavily advertised to inform customers
• Sales will be low at this stage with little to no profit

Question 27

Describe the Growth stage of the product lifestyle

Answer 27

• The product is becoming more well-known and popular
• Advertising continues but at a lower rate than before
• Sales are rapidly increasing. profit is beginning to be made

Question 28

Describe the Maturity stage of the product lifestyle

Answer 28

• Sales and profits have reached their peak.
• The product is well establishes on the market
• Advertising is used only as a reminder
• New models/variations may be introduced to encourage long term sales

Question 29

Describe the Decline stage of the product lifestyle