Comducting Start-up Market Research

Question 1

Marketing definition

Answer 1

The process of anticipating and satisfying customers’ wants in a way that delights the customer and also meets the needs of the organisation.

Question 2

Purposes of market research

Answer 2

Descriptive, explanatory, predictive and exploratory reasons.

Question 3

Descriptive reasons of market research

Answer 3

Has the firm achieved targets
Are sales rising or falling
How are firms sales performing relative to a competition

Question 4

Explanatory reasons of market research

Answer 4

What external factors affect demand
What are the main reasons why customers buy the product
Why was a promotional campaign unsuccessful

Question 5

Predictive reasons of market research

Answer 5

Calculating the extent to which advertising influences sales volume
If introducing a new flavour affects the sales of existing flavours
Predicting if a new price will boost sales revenue

Question 6

Exploratory reasons of market research

Answer 6

Probable level of demand
Most suitable market segments to be targeted
Ideal price level
Best ways of promoting the product

Question 7

Types of market research

Answer 7

How the data is collected-(primary/secondary)

The content if the data-(quantitative/qualitative)

Question 8

Primary market research

Answer 8

The collection of information first-hand for a specific purpose.

Question 9

Secondary market research

Answer 9

The use of information that has already been collected for a different purpose.

Question 10

Types of primary market research

Answer 10

Experiments 
Observation 
Focus group 
Surveys 
Personal interviews 
Postal surveys 
Telephone interviews 
Internet surveys 
Test marketing

Question 11

Experiments + -

Answer 11

Relatively cheap

May delay intro of a potentially successful strategy

Question 12

Observation + -

Answer 12

May show what customers are thinking

Expensive to employ psychologists to analyse the results

Question 13

Focus group + -

Answer 13

Able to gather in-depth details of customers’ thoughts

May be bias

Question 14

Personal interviews + -

Answer 14

Wide range of info can be gained

Can be time consuming

Question 15

Postal surveys + -

Answer 15

Cheap

Response rates low

Question 16

Telephone interviews + -

Answer 16

Calls are cheap

Questions tend to be brief

Question 17

Internet surveys

Answer 17

Surveys can be updated frequently

Be biased towards people with a particular interest in the product or service

Question 18

Test marketing + -

Answer 18

Relatively accurate predictor of future popularity

Can lead to rivals copying product before actual launch

Question 19

Key sources of secondary market research

Answer 19

Government publications 
Newspapers 
Company records
Magazines 
Competitors
Market research organisations 
Loyalty cards 
Internet

Question 20

Benefits of secondary market research

Answer 20

Information is already available
Cheaper than primary research
Secondary surveys are often conducted regularly so helpful to identify trends over time

Question 21

Drawbacks of secondary market research

Answer 21

Info may be dated therefore misleading
Available to everyone so no competitive advantage
May be no relevant secondary data
May be unreliable and inaccurate

Question 22

Qualitative market research definition

Answer 22

The collection of the info about the market based on subjective factors such as opinions and reasons.

Question 23

Quantitive market research definition

Answer 23

The collection of the information about the market based on numbers.

Question 24

Qualitative market research + -

Answer 24

Helps a firm to understand its customers
Can give ideas that the firm had not previously considered

Expensive to gather
Possibly biased
Difficult to collate

Question 25

Quantitative market research + -

Answer 25

Summarises data concisely
Easier to compare results to other organisations
Help to identify changes and trends

Only shows ‘what’ rather than ‘why’
Can lack reliability and validity if sample size is small

Question 26

Sample definition

Answer 26

A group of respondents or factors whose views or behaviour should be representative of the target market as a whole.

Question 27

Random sample definition

Answer 27

A group of respondents in which each member of the target population has an equal chance of being chosen

Question 28

General problems of sampling

Answer 28

Sample may be unrepresentative
May be bias in questions
May be difficult to locate suitable respondents

Question 29

Factors influencing choice of sampling method

Answer 29

Costs and availability of finance
Time
Importance of market segments/sections
Is the business targeting a specific group of customers
The firm’s understanding of its customer base

Question 30

Market research definition

Answer 30

The systematic and objective collection, analysis and evaluation of information that is intended to assist the marketing process