Market Research(1.1.2)

Question 1

What is market research?

Answer 1

the process of determining the viability of a new service or product through research

Question 2

What is product orientation?

Answer 2

the product and its characteristics are the focus rather than the customers
therefore high quality

Question 3

What is market orientation?

Answer 3

customers needs and wants are the focus
therefore the product is updated to continuously meet wants and needs

Question 4

What is a asset led market?

Answer 4

does both product and market orientation

Question 5

What is market research used for?

Answer 5

quantify the demand for a product
provide and insight into consumer behaviour
identify potential price ranges for the products
gauge potential strengths and weaknesses of competitors

Question 6

What is primary research?

Answer 6

data that has never been collected before

Question 7

Eight methods of primary reseach

Answer 7

questionnaires
postal surveys
telephone interviews
personal interviews
focus groups
observation
test marketing
social media

Question 8

Advantages of primary research

Answer 8

business is able to tailor research to exactly what they want to know
information is available exclusively to that business and their competitors cant access it
can help businesses to understand customer psychology and get in depth understanding of their clientele(consumer behaviour)

Question 9

Disadvantages of primary reseach

Answer 9

can be very expensive-external agencies may have to be hired and can cost thousands for high quality in depth information-can be time consuming and take away attention form other things
bias can sway researcher guiding them to answer in particular way-respondents may not provide true information-inaccuracy-research may not be reflective especially is a small sample size is used e.g. 5 person focus group-unreliable

Question 10

What is secondary research?

Answer 10

research that already exists

Question 11

What is internal data?

Answer 11

facts and information that come directly from the company’s systems and are specific to the company in question

Question 12

Three internal data examples

Answer 12

market research reports e.g. past advertising campaigns
sales figures e.g. invoices
customer preferances e.g. known complimentary products
annual reports e.g. wider department data

Question 13

What is external data?

Answer 13

data that is generated outside an organization

Question 14

Two external data examples

Answer 14

market research reports e.g. MINTEL
government publications e.g. housing income

Question 15

Secondary research disadvantages

Answer 15

information may be out of date or irrelevant-may have been gathered for other purposes-may be factually incorrect.​
bias-no way to tell-research methods and researchers can be unknown​
some market reports can be very expensive to buy ​

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Question 16

Secondary research advantages

Answer 16

can be cheap or free e.g. government websites
quick and easy to collect
can use data to spot trends and changes
can be checked across multiple sources for reliability

Question 17

What is qualitative research?

Answer 17

provides insight to attitudes feelings and behaviours
e.g. focus groups, interviews

Question 18

What is quantitative research?

Answer 18

provides numerical data that can be statistically analysed
e.g. sales figures, market share

Question 19

What are three limitations to market research?

Answer 19

sample size being too small
sample bias
human behaviour

Question 20

What are four extra limitations of market research?

Answer 20

budgetary constraints
time constraints
reliability of data
legal and ethical constraints

Question 21

What is market segmentation?

Answer 21

the means of discovering useful ways to split up a market into different groups of consumers who share similar characteristics wants and needs
segment-target-position

Question 22

Four ways to segment the market

Answer 22

geographical
demographical
psychographic
behavioural

Question 23

What is geographical segmentation?

Answer 23

different customer groups will likely have different needs depending on where they live

Question 24

What is demographical segmentation?

Answer 24

age, gender, income, social class, religion, ethnicity

Question 25

What is psychographic segmentation?

Answer 25

groups customers according to their attitudes opinions and lifestyles

Question 26

What is behavioural segmentation?

Answer 26

grouping customers based on actions and behaviour

Question 27

Advantages of market segmentation

Answer 27

identify gaps in the market-products and services can be designed to suit specific customers
the firms can meet needs more precisely
promotional and marketing activities are easier to target groups of customer and refine the promotional ideas

Question 28

Disadvantages of market segmentation

Answer 28

high costs concerning research and development and marketing#(also market research)
product range increasing or becoming more specialised could lead to higher costs per unit(production) and even diseconomies of scale
difficult to identify segments
consumers may belong to multiple segments
consumers may not behave the same(within the segment)
segment could be too small and unprofitable

Question 29

Three ways ICT supports market research

Answer 29

company website
databases
social networking

Question 30

How does company websites support market researching?

Answer 30

collect primary data cheaper e.g. tracking consumers searches and reviews, pop ups are alseo effective
aquiresd secondary data about rivals e.g. prices and special offers

Question 31

How does databases support market researching?

Answer 31

loyalty cards e.g. Tesco Clubcard, Lidl plus
customer email address e.g. send offers, vouchers, savings

Question 32

How does social networking support market researching?

Answer 32

Instagram, Facebook, Twitter, Tiktok
it is also useful as a method of running quick polls and surveys or tacking opinions about brands