Conducting Market Research

Question 1

Define Entrepreneur

Answer 1

The person who takes the initiative and risk to set up a business with the hope of making a profit.
Example: Mark Zuckerberg

Question 2

Define Market Research

Answer 2

The gathering and analysis of information about consumer opinion to help the business make informed decisions.

Question 3

What is the Aim of Market Research?

Answer 3

To ensure the business creates a product/service that customers need and want.

Question 5

Benefits of Market Research (5)

Answer 5

1. Understand the demand for the product
2. Understand what the consumer likes/dislikes about the product - feedback can inform changes
3. Understand the best price to charge
4. Gain new information about the competition - how can we stand out?
5. Understand the best promotion methods to use

Question 6

Define Target Market

Answer 6

A group of people who all need/want a particular product/service. It is who your product is aimed at.

Question 7

Define Desk Research

Answer 7

Involves looking at information that is already available. Also called Secondary Research as the information has already been gathered for another purpose.

Question 8

Examples of Desk Research (4)

Answer 8

1. Internet Research: e.g. to look up competitors websites
2. Central Statistics Office (CSO): e.g. to find out the population/gender/age of a particular location.
3. Sales Reports: e.g. to look at previous sales to see what is the most/least popular product
4. Newspapers: e.g. to learn about consumer trends - interest in healthy eating (organic food)

Question 9

Advantages of Desk Research

Answer 9

1. Quick to collect as information available already - Saves Time
2. Easy to collect as information available already
3. Cheap as no need to hire somebody to collect information

Question 10

Disadvantages of Desk Research (3)

Answer 10

1. Information may not be relevant or useful to the business
2. Information may outdated or inaccurate
3. Information overload may occur as large volume of information available

Question 11

Define Field Research

Answer 11

Involves going into the marketplace to gather information first-hand from your target market. Also called Primary Research as you are making direct contact with potential consumers.

Question 12

Examples of Field Research (3)

Answer 12

1. Surveys/Questionnaires
2. Observation
3. Focus Groups

Question 13

Define Survey/Questionnaire

Answer 13

This involves questioning consumers about the product/service. Questions should be clear and not lead the consumer.
Survey can be completed online, telephone, face to face, postal.

Question 14

Types of Questions in a Survey

Answer 14

1. Closed Question - Yes/No
2. Multiple Choice Question - consumer picks between options listed
3. Open Ended Question - consumer has option to say what they like

Question 15

Disadvantages of Surveys (2)

Answer 15

1. Dishonest responses

2. Low response rate - especially online & telephone

Question 16

Tips on Writing a Survey/Questionnaire (3)

Answer 16

1. Be Brief - limit to 10 questions
2. Be Realistic - Avoid too many open ended questions as this takes time
3. Be Persistent - Send a polite reminder email to complete the survey

Question 17

Define Observation and Give an Example

Answer 17

This involves watching the consumer in action.
Example: The number of consumers picking a specific product at a particular time of day OR the time it takes to select a product.

Question 18

Advantages of Observation (2)

Answer 18

1. Large number of people can be observed

2. Cheap

Question 19

Disadvantages of Observation (2)

Answer 19

1. Time consuming

2. Limited information gained - you know what product was chosen but not why

Question 20

Define Focus Group

Answer 20

A group of consumers brought together to discuss a product or service

Question 21

Advantage of Focus Group (1)

Answer 21

Large number of opinions collected

Question 22

Disadvantage of Focus Group (1)

Answer 22

One group member may dominate conversation

Question 23

How an Entrepreneur Comes Up With Ideas (5)

Answer 23

1. Brainstorming: Involves writing a list of new ideas and rejecting the ones that won’t work and following the ones that do
2. Intrapreneurship: Involves employees inside a business coming up with a suggestion to improve the business
3. Competitors: Involves copying a product that already exists. Be careful of copyright and patents
4. Import Substitution: A product that is currently imported is now made in Ireland
5. Market Research

Question 24

Advantages of Surveys (2)

Answer 24

1. Consumer answer in their own time

2. Detailed information provided