Market research

Question 1

What is market research?

Answer 1

Involves gathering, presenting and analysing information about the market and consumption of goods and services

Question 2

What is primary research and what are some examples?

Answer 2

It has to be collected by the researcher and its information that did not exist before the research began. EG; questionnaires, focus groups, observations

Question 3

What is secondary research?

Answer 3

Collecting information which already exists. Eg from the internet

Question 4

What is market segmentation?

Answer 4

A particular group that has similar characteristics

Question 5

What are limitations of market research?

Answer 5

1) bias
2) expensive
3) time consuming
4) not always reliable

Question 6

What is market mapping?

Answer 6

Process of finding the variables which differentiate brands in a market and then putting them on a map to identify gaps

Question 7

Pros of primary research

Answer 7

-up to date
-focused on the research objectives

Question 8

Cons of primary research

Answer 8

-time consuming
-risk of bias
-sample may not be representative

Question 9

pros of secondary market research

Answer 9

-often free and easy to obtain
-good source of market insights
-quick to assess

Question 10

cons of secondary market research

Answer 10

-can be out of date
-not always tailed to specific research needs

Question 11

Pros and cons of market segmentation

Answer 11

pros- could allow business to charge higher price, brand loyalty, allow more targeting promotional activity

cons- expensive to research, may miss sales in other areas which may limit revenue

Question 12

Pros and cons of market mapping

Answer 12

pros:
- helps spot gaps
- useful for analysing competitors

Cons:
- not guarantee success
- market research may be inaccurate + expensive
- just because there is a gap doesn’t mean there is demand