Market research

Question 1

Market research

Answer 1

is the process of gathering, analysing and interpreting info about a market

Question 2

Product-orientated

Answer 2

business whose main focus of activity is on the product itself

Question 3

Market-orientated

Answer 3

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

Question 4

Marketing budget

Answer 4

is a financial plan for the marketing of a product or product range for some specified time. It specifies how much money is available to market the product or range, so that the marketing department knows how much it may spend

Question 5

Primary research

Answer 5

is the collection of original data via direct contact with potential or existing customers. (field research)

Question 6

Secondary research

Answer 6

uses info that has already been collected and is available for use by others (desk research)

Question 7

Advantages of Primary research

Answer 7

• It is up to date and relevant to the business undertaking it
• Carried out by people who wants to use the data; it is first-hand data
• It would help support info to the specific problem, ex: to test a market if a new product would be likely to succeed.

Question 8

Disadvantages of primary research

Answer 8

• expensive

- Not available immediately (time consuming)

Question 9

Types of primary research

Answer 9

• Questionnaires
• Online surveys
• Interviews
• Focus groups

Question 10

Questionnaires

Answer 10

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

Question 11

Online surveys

Answer 11

require the target sample to answer a series of questions, over the internet

Question 12

Interviews

Answer 12

involve asking individuals a series of questions, often face-to-face or over the phone

Question 13

Focus groups

Answer 13

is a group of people who are representative of the target market

Question 14

Advantages of questionnaires

Answer 14

• Detailed qualitative info gathered
• Customers opinion can be obtained
• Can be carried out online
• To encourage people to fill in the questionnaires, gifts or vouchers can be offered

Question 15

Disadvantages of questionnaires

Answer 15

• If questions are not clear and thought is put into them, answers would be inaccurate.
• Takes time and money
• Collating and analysing the result is also time consuming

Question 16

Advantages of Online surveys

Answer 16

• Fast, with quicker response times than other forms
• Cheaper than interviews or postal questionnaires
• Easy to complete
• Data can be easily presented and analyzed using IT tools

Question 17

Disadvantages of Online surveys

Answer 17

• Absence of interviewer to explain open ended questions
• Cannot reach potential customers without an internet question
• Scope for fraud, some people will answer the question just for the prize that might be given to them, so these answers might be dishonest

Question 18

Advantages of interviews

Answer 18

• The interviewer is able to explain questions that the interviewee dosent understand
• Detailed info can be gathered such as like and dislikes of the product

Question 19

Disadvantages of interviews

Answer 19

• interviewer effect can occur, which means interviewer could unknowingly or knowingly manipulate the answers by the interviewee
• Time consuming and expensive

Question 20

Advantages of Focus groups

Answer 20

• Detailed info about customer tastes and preferences
• Interaction between members helps business understand reason for their opinion
• Quicker and cheaper

Question 21

Disadvantages of Focus groups

Answer 21

• Time consuming and expensive if conducted by specialists
• Discussions could be biased, if people are influenced by the opinion of others
• Can be dominated by just a few people, researcher should be experienced

Question 22

Sample

Answer 22

is the group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 23

random sample

Answer 23

is when people are selected at random as a source of information for market research

Question 24

Quota sample

Answer 24

is when people are selected on the basis of certain characteristics (age, gender or income), as source of info for market research

Question 25

Advantages of Secondary research

Answer 25

• much cheaper gathering info, than primary research
• used to help assess the total size of a market by finding out the size of the population and its age structure. (cannot be obtained by primary research)

-

Question 26

Disadvantages of Secondary research

Answer 26

• Data may be out of date
• Data is available to all businesses - not solely for one
• Data may not be completely relevant as it wasn’t collected with needs of one business

Question 27

Internal source of data

Answer 27

• Sales department records, pricing data, customer records, sales report
• Finance department
• Customer service department

Question 28

External source of data

Answer 28

• Government statistics
• Newspapers
• Trade association
• Market research agencies
• Online sources