Market research 1.1.2

Question 1

Define product orientation

Answer 1

Is an inward approach that focuses on its product or service’s quality and performance.

Question 2

What does a business concentrate on with Product orientation?

Answer 2

The business will concentrate on producing high quality products and then later look to create a market for them

Question 3

What is Market orientation?

Answer 3

Is an outward-looking approach to new product development were the key focus is on what products the consumer wants.

Question 4

What does a business concentrate on with Market orientation?

Answer 4

The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs.

Question 5

What does Market orientation reduce the risk of?

Answer 5

Reduces, but does not eliminate, the risk of new product development

Question 6

What is Market research?

Answer 6

Market research is the collection and analysis of data and information to inform a business about its market.

Question 7

What is the data collected in Market research used for?

Answer 7

Identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour.
Helps them stay on social trends.

Question 8

What is Primary market research?

Answer 8

It involves the collection of first hand data that did not exist before and therefore it is original data.

Question 9

What is Secondary market research

Answer 9

It is research that has already been undertaken by another organisation and therefore already exists.

Secondary market research uses data that already exists and has been collected by someone else for another purpose.

Question 10

What are some examples of Primary market research?

Answer 10

Surveys/ questionnaires
Focus groups
Observations
Interviews
Experiments

Question 11

What are some examples of Secondary market research?

Answer 11

Websites
Market reports
Newspapers
Magazines
Government reports

Question 12

What are the strengths and weaknesses of primary market research?

Answer 12

+ Directly focused on research objectives = fit for purpose.

+ Tends to be more up-to-date than secondary research.

+ Provides more detailed insights – particularly into customer views.

• Time-consuming and often costly to obtain.
• Risk of survey bias – research samples may not be representative of the population.

Question 13

What are the strengths and weaknesses of secondary market research?

Answer 13

+ It’s much cheaper.
+ It’s fairly quick.
+ It may allow businesses to spot trends. (extrapolation)

• Information is outdated which can lead to poorer decisions being made.
• The fact that the research for our business to collect is out there in the public domain so our rivals have access to it as well so which reduces the ability to gain a competitive advantage.

Question 14

What is Qualitative data?

Answer 14

Qualitative research is the gathering of non-statistical information that gives a company in depth insight into the reasons for human behaviour.

Question 15

What is Quantitative data?

Answer 15

Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons.

Question 16

What are some limitations of market research?

Answer 16

Past data and trends may not be a fair indication of the future.
Accuracy of research findings.
Dependent upon ability to correctly analyse findings.
Financial and opportunity costs.
Bias

Question 17

Why is a Sample useful?

Answer 17

Businesses cannot ask for the opinions of all potential customers and therefore try to choose a representative sample.

Question 18

What is a Sample?

Answer 18

A sample is a group of subjects that has been chosen from a larger group, the population, for investigation.

Question 19

What does the value of a sample depend on?

Answer 19

The sample technique used.
How the sample was carried out.
The size of the sample.

Question 20

What does the Size of the Sample depend on?

Answer 20

The budget available.
The importance of accuracy.
Degree of confidence in results.

Question 21

What are the four types of sampling?

Answer 21

Stratified
Random
Quota
Systematic

Question 22

What is Random sampling?

Answer 22

Random sampling does not target any specific market segment. The people to be included in the sample are generated at random.

Question 23

What is Quota sampling?

Answer 23

Is a sample that has been created to mimic the characteristics of a market. The researcher will choose the characteristics they wish the respondents to have.

Question 24

What is Stratified sampling?

Answer 24

Is a type of sampling method in which the total population is divided into smaller groups or strata to complete the sampling process. The strata is formed based on some common characteristics in the population data.

Question 25

What is systematic sampling?

Answer 25

A sample selected by listing a population sequentially and choosing members at regular intervals.

Question 26

What 3 Uses does ICT have In market research?

Answer 26

Helps with primary.

Research Firms that run Ecommerce websites can request customers to participate and often offer some kind of incentive for doing so.

Improved Customer Service.

Question 27

What is Market Segmentation?

Answer 27

The process of splitting a business’ target market into different groups. Businesses use these groups to make it easier for them to develop products aimed at certain people and to help them target their marketing.

Question 28

What are the 4 different Segmentation Methods?

Answer 28

Demographic
Geographical
Income
Behavioural

Question 29

What is Demographic Segmentation?

Answer 29

The categorisation of consumers into segments based on their demographic characteristics.

Question 30

What are the 8 different ways of Demographic Segmentation?

Answer 30

Age.
Gender.
Ethnicity.
Income.
Level of education.
Religion.
Occupation.
Family structure.

Question 31

What is Geographical Segmentation?

Answer 31

A marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

Question 32

What is Income Segmentation?

Answer 32

Considers how much people earn and how much disposable income they have.

Question 33

What are some benefits of segmentation to companies?

Answer 33

Increases clarity.
Develops consumer insights.
Improves brand loyalty and customer engagement.
Streamlines mass customisation.
Optimises for cost efficiency and resource management.
Grows niche marketing capabilities.

Question 34

What factors influence the choice of sampling methods?

Answer 34

Time available.
Size of budget available.
The accuracy of the data required.