Conducting Market Research

Question 1

What is Brainstorming?

Answer 1

This involves writing a list of new ideas and rejecting the ones that won’t work and following the ones that do.

Question 2

Who are Competitors?

Answer 2

This involves copying a product that already exists. Be careful of copyright and patents.

Question 3

What is an intrapreneurship?

Answer 3

This involves employees inside a business coming up with a suggestion to improve the business.

Question 4

What is Import Substitution?

Answer 4

A product that is currently imported is now made in Ireland

Question 5

List four ways to come up with Business Ideas.

Answer 5

Brainstorming
Competitors
Intrapreneurship
Import Substitution

Question 6

What is Market Research? What is the aim of a business before it conducts market research?

Answer 6

Market Research is the gathering and analysis of information about consumer opinion to help the business make informed decisions.
Aim: To ensure the business creates a product/service that customers need and want.

Question 7

What are the benefote of Market Research? (5)

Answer 7

Understand the demand for the product-how many people would buy it?
Understand what the consumer likes/dislikes about the product-feedback can inform changes.
Understand the best price to charge-how much will consumers pay?
Gain new information about the competition-how can we stand out?
Understand the best promotion methods to use-how will consumers react?

Question 8

What is a target market? Give an example.

Answer 8

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

E.g. The target market of computer games might be young males aged 8-18.

Question 9

What are the two types of Market Research?

Answer 9

Field Research

Desk Research

Question 10

What is Desk Research?

Answer 10

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

Question 11

Give four examples of Desk Research and why we use these examples.

Answer 11

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

Question 12

What are the advantages of Desk Research?

Answer 12

Quick to collect as information available already-saves time.
Easy to collect as information available apready.
Cheap as no need to hire somebody to collect information.

Question 13

What are the disadvantages of Desk Research?

Answer 13

Information may not be relevant or useful to the business.
Information may be outdates or inaccurate.
Information overload may occur as there is a large volume of information available.

Question 14

What is Field Research?

Answer 14

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

Question 15

Give three examples of field research.

Answer 15

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

Question 16

What is a Survey/Questionnaire? How can a survey be completed?

Answer 16

Involvesnquestioning cutomers about the product/service. Questions should be clear and not lead the consumer. Surveys can be completed online, by telephone, face to face or through postal.

Question 17

What three types of question appear on a survey?

Answer 17

Closed Question-Yes/No
Multiple Choice Question-Consumer picks between two options listed.
Open Ended Question-Consumer has option to say what they like.

Question 18

What are the advantages of a survey?

Answer 18

Consumers answer in their own time.

Detailed information provided.

Question 19

What are the disadvantages of a survey?

Answer 19

Dishonest responses.

Low response rate-especially online & telephone.

Question 20

What is Observation? Give an example.

Answer 20

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

Question 21

What are the advantages of Observation?

Answer 21

Large number of people can be observed.

Cheap.

Question 22

What are the disadvantages of Observation?

Answer 22

Time consuming.

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

Question 23

What is a Focus Group?

Answer 23

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

Question 24

What are the advantages/disadvantages of focus groups?

Answer 24

Advantages:
Large number of opinions collected.
Disadvantages:
One group member may dominate conversation.