Market Research 1.2

Question 1

Market research is importante because customers differ in terms of…

Answer 1

. benefits they want
. amount they are able to or willing to pay
. media they see
. quantities they buy
. time and place they buy

Question 2

Insights provided by effective market research

Answer 2

. dimensions of the market (size, structure, growth, trends)
. competitor strategies (market share, positioning, USPs) EG. Audi and Volkswagen
. needs, wants and expectations of customers VIA surveys or INE
. market segments- existing and potential opportunities for new segments

Question 3

Cash flow forecstaing

Answer 3

Estimate of cash low

Question 4

Market segmentaion

Answer 4

Your public

Question 5

Sales forecasting

Answer 5

Estimate of sales

Question 6

Product VS market orientation: product

Answer 6

An approach to marketing that focuses on the characteristics of the product rather than the needs of consumer, business develops products based on what it is good at doing
. The emphasis will be creating the product firsts and then finding market
. Problem of being too product orientated is over time your business may move further and further away from the market its looking for, thus increasing g risk of business failure
Eg. Apple

Question 7

Product VS market orientation: marketing orientation

Answer 7

. Business responds to customer needs and wants - designs products accordingly
. Consumers at centre of marketing decisions
. Products Developed in respond to customer need
. Benefit from: increased demand, profits and a valued brand image
Eg. Zara

Question 8

Why is marketing orientation crucial

Answer 8

. Markets are much more dynamic (shortening product life cycles)
. Customers are becoming much more demanding (eg higher expectations of customer service and able to share experiences via social media)
. Barriers to market entry getting lower

Question 9

Primary VS secondary research: primary

Answer 9

The process of gathering information directly from consumers in the target market using field research methods eg surveys

Question 10

Primary VS secondary research: advantages of primary research

Answer 10

. Information focused on needs of business
. Business can get in depth info
. More up to date
. Customised to your needs
. Not shared with competitors
. Reliable

Question 11

Primary VS secondary research: primary disadvantages

Answer 11

. Sample may be to small and unrepresentative
. Bias, researchers can guide respondents to answer in a particular way
. Expensive and time consuming

Question 12

Primary VS secondary research: secondary

Answer 12

Involves the collection and analysis of data that already exists eg purchasing market reports

Question 13

Primary VS secondary research: secondary advantages

Answer 13

. Info already available so quicker and easier to access
. Info is often free and cheaper to collect leading to lower costs than primary research
. Suitable for small businesses that lacks large marketing budget
. More representative

Question 14

Primary VS secondary research: secondary disadvantages

Answer 14

. Info has been collected for other purposes so may lack relevance or may not be factually correct, not customised
. Can be expensive to purchase market specific secondary data from specialist companies eg MINTEL reports
. Info may be out of date
. Biased info

Question 15

Secondary research sources

Answer 15

. Google/ safari
. Institutions
. Public admin
. Social media
. Trade press
. Magazines
. Academic research
. Competitors website

Question 16

Primary research sources

Answer 16

. Surveys
. Questionnaire
. Interviews
. Focus group (you choose group of people for your market and they test your product)
. Experiment

Question 17

Effective market research will help business..

Answer 17

. Reduce risk when launching new products or entering new markets
. Anticipate future needs and wants of consumers
. To understand consumer behaviour
. To identify potential consumer demand
. Tho identify how much consumers are prepared to pay
. To identify competitors and identify they potential strengths and weaknesses

Question 18

Quantitative VS qualitative data: qualitative

Answer 18

Why? How? Aim to understand how customers behave, based on opinions and attitudes (ie focus groups, interviews etc)

Question 19

Quantitative VS qualitative data: qualitative benefits

Answer 19

. Wider info
. Detailed
. Focus groups/face to face
. Highlight issues to addressed to cover needs and wants

Question 20

Quantitative VS qualitative data: qualitative disadvantages

Answer 20

. Honesty of people?
. Increased cost
. It depends on people opinion
. Difficult to analyse

Question 21

Quantitative VS qualitative data: quantitative

Answer 21

How often? How many? When? Where? Based on larger samples, therefore more statistically valid. Obtained by various forms of survey (ie telephone, postal etc)

Question 22

Quantitative VS qualitative data: quantitative benefits

Answer 22

. Accurate and specific information
. Statistics
. Easy to understand and manage
. Surveys/interviews
. Competitive advantage

Question 23

Quantitative VS qualitative data: quantitative disadvantages

Answer 23

. Not broad enough
. Close ended question
. Too specific

Question 24

The use of ICT to support market research: company websites

Answer 24

Allow business to collect primary data more cheaply eg tracking consumer searches and analysing customer reviews as well as collecting secondary data about rivals -> learning about customers and rivals
Eg. Prices and special offers

Question 25

The use of ICT to support market research: databases

Answer 25

. These can be used to store large amounts of customer info
. file searching
. file sorting
. calculations
> data protection office
. Easy to access and manage, better organisation

Question 26

The use of ICT to support market research: social networking

Answer 26

Focuses on gathering info about consumer via online social channels such as twitter and facebook. Also a useful method of running poles and surveys or tracking opinions about brands

Question 27

Sampling

Answer 27

Gathering data from a sample of respondents -> representative
-> target market

Question 28

Sampling advantages

Answer 28

representative (useful)
forecasts risks (production)
reduce cost of production

Question 29

Sampling disadvantages

Answer 29

difficult to predict
biased (maybe)
sample unrepresentative
change in market in this case can cause failure

Question 30

Market segmentation

Answer 30

-> which customers to serve
-> targeting, selecting segment to enter
. Each segment represents a slightly different set of consumer characteristics

Question 31

Geographical and demographic segmentation

Answer 31

Age, income, social class, ethnicity, religion, place

Question 32

Physcographic segmentation

Answer 32

Eg chocolate
-> eaten when sad/depressed
-> energy
-> preference
. Attitude to life
. Thoughts beliefs, likes, political aspects

Question 33

Behavioural segmentations

Answer 33

• usage rate
• loyalty
• Time/ date consumption

Question 34

Advantages and disadvantages of market segmentation: advantages

Answer 34

. Recognises that consumers are not all identical - consumer groups do not share all the same tests and conferences
. Products are marketing activities can be altered to meet different needs of different groups of consumers and targeted more precisely
. Less expensive and wasteful than marketing products at wide market segments
. May increase loyalty if the consumer feels that their needs are being met which can lead to repeat purchases

Question 35

Advantages and disadvantages of market segmentation: disadvantages

Answer 35

. Not everyone whithin a segment will behave in the same way
. May be difficult to identify a segment and consumers can be belong to multiple segments at the same time
. Segmentation requires more detailed market research which can prove costly (but beneficial) to a business
. A segment may be identified but it may be too small and unprofitable