Lesson 11 - Market research

Question 1

Define Product-Orientated business

Answer 1

Business is one whose main focus of activity is the product itself.

Question 2

Define Market-Orientated business

Answer 2

Business is one which carries out market research to find out customer wants before a product is developed and produced.

Question 3

Define a marketing-budget

Answer 3

A financial plan or forecast for the marketing of a product for a specific period of time.

Question 4

Define Market research

Answer 4

Is the process of gathering, analyzing and interpreting information about a market.

Question 5

What does market research try to find out.

Answer 5

• What feature of the product people like or hate
• Would they buy the product
• What price would they be prepared to buy
• Where would they most likely buy my product.

Question 6

List the 2 types of market research

Answer 6

Primary research or field research

Secondary research or desk research

Question 7

What is primary research and its types

Answer 7

-Primary research is the collection and collation of original data via direct contact with potential or existing customers
-Types of primary research
•Research
•Interviews
•Focus groups
•Observations

Question 8

What is a questionnaire, its Advs and Disadvs

Answer 8

A questionnaire is a set of questions set to be answered as a means for collecting data for market research.

Advs:
•Customers opinion can be easily obtained
•Questionnaires can be carried online which preserves time and makes it cheaper.
Disadvs:
•Collecting and analysing results is time consuming
•Carrying out questionnaires can take a lot of time and money

Question 9

List 2 Advantages and disadvantages of Interviews

Answer 9

Advs:
•Interviewer can explain any question which the interviewee doesnt understand
•Detailed information can be collected
Disadvs of Interview
•Interviews are very time consuming therefore there are often expensive

Question 10

Define Sample, Random sample, and quota sample

Answer 10

• Sample : are the group of people selected to respond to a market research activity such as questionnaire.
• A random sample : Is when people are selected at random as a source of information for market research
• A quota sample : Is when people are selected on basis of certain characteristic (such as age gender or income) as a source for information for market research

Question 11

Define Focus group its advantage and its disadvantages

Answer 11

•Focus group is a group of people who are representatives of the target market

• Advantages : They can provide detailed information about consumer’s opinions
• Disadvantage : They can be biased if some people in the panel are influenced by opinion of others

Question 12

List 3 methods of Observation

Answer 12

• Recording
• Watching
• Audits

Question 13

Advs and disadvs of Observation

Answer 13

• Quite inexpensive

- The Information only gives basic figures it does not provide the business with reasons for consumer decisions

Question 14

What are the two sources of secondary research

Answer 14

• Internal sources of information

* External sources of information

Question 15

Give examples of Internal sources of Information

Answer 15

• Finance department
• Customer service department
• Sales department sales records

Question 16

Give examples of External sources of Information

Answer 16

• Government statistics

- News papers

Question 17

Give 3 stuff accuracy of market research depends on

Answer 17

• How carefully the sample was drawn up
• The sample selected - If a quota was used rather than a sample it would be more accurate
• Bias - Articles in newspapers sometimes have bias and Important details are left out deliberately