Chapter 11 Flashcards
What is market research?
The process of gathering analysing and interpreting information about a market
What does product orientated mean?
A product orientated business is one who’s main focus of activity is on the product itself
What does the role of market research try to find out?
Would customers be willing to by my product
What price would they be prepared to pay
What type of customer would buy my product
Where would they be most likely to buy my product
What does market orientated mean?
A market orientated business is one which carries out market research to find out customer wants before a product is developed and produced
What is a marketing budget?
A marketing budget is a financial plan for the marketing of a product or product range for some specified period of time
What is primary research?
The collection and collation of original data via direct contact with potential or existing customers
What is secondary research?
Secondary research uses information that has already been collected and is available for use by others
What are the adv and dis of primary research?
Adv
-accurate and up to date
-specific for this business
Dis
-expensive
-it takes time to collect
What are the adv and dis of secondary research?
Adv
-quick and cheap to get
- a cheaper way of feathering research compared to primary
Adv
-data may be out of date
-data is available to all businesses including competitors
What are dis and adv of questionnaires?
Adv
-they can be carried out online
-detailed qualitative information can be gathered about the product of service
Dis
-if the questions aren’t thought out the answers to them won’t be very detailed
-carrying out questionnaires takes up a lot of time and money
What are the adv and dis of online surveys?
Adv
-easy to complete for participant
-fast and cheap
Dis
-cannot reach potential respondents who do not have access to internet
-scope for fraud
What are the dis and adv of focus groups?
Adv
-the interviewer is able to explain any questions that the interviewee doesn’t understand
-detailed information can be gathered about what the interviewees like and dislike about the product
Dis
-interviews are time consuming to carry out
-the interviewer may lead the interviewee into answering in a certain way which may result in inaccurate answers
What is a focus group?
A group of people who are representative of the target market
What are the adv and dis of focus groups?
Adv
- quick and cheap
- provide detailed answers about consumers tastes and preferences
Dis
- discussion could be biased if some people are influenced by others on the panel
- can be dominated by a few people
What is a sample?
A group of people who are selected to respond to a market research exercise
What is a quota sample?
When people are selected on the bias of certain characteristics
What is a random sample?
When people are selected at random as a source of information for market research
What are some limitations of external sources of secondary data?
Government statistics
Newspapers
Online sources
What are some examples of internal sources of information?
Finance department
Customer service department
What does the reliability or accuracy of data that had been collected depend on?
How carefully the sample was drawn up
Bias newspapers and articles may have important information that may be deliberately left out
Age of the information- statistics can quickly become out of date no longer relating to the current trends of consumers preferences
What are some examples of external secondary research?
Newspapers
Internet
Government reports and statistics
What are some ways of presenting data?
Diagram
Bar chart
Pie chart
Line graph
Tally chart
