Market research

Question 1

Define Market research.

Answer 1

Discovering what consumers require from a good/service so that the company can satisfy those requirements.

Question 2

What is the purpose of Market research? (8)

Answer 2

1. Identify Target Markets.
   So the product suits the market. Helps focus its
   marketing budget.

2.To test New Products.
Test on small scale so firms don’t spend time&money
on a product that doesn’t sell.

3.Find out about competitors
Info on strengths & weaknesses of competitors, so
your firm can be more competitive.

4. Identify customer perception.
   Negative perception can have a big impact in sales.
   Firms need to plan how to manipulate perception.

Question 3

What are the two types of Market Research?

Answer 3

Primary Research

Secondary Research

Question 4

Define Primary Research.

Answer 4

Info that’s collected by the business itself.

Question 5

Define Secondary Research.

Answer 5

Existing data that has been collected by third party sources.

Question 6

Give 2 Advantages of Primary Research.

Answer 6

+Data is more relevant to the needs of the business.

+More accurate & up to date.

Question 7

Give 2 disadvantages of Primary Research.

Answer 7

• Takes time to carry out, bad for fast changing markets

- Can be inaccurate or bias if not planned properly.

Question 8

Give 2 Advantages of Secondary Research.

Answer 8

+Easier and faster to find

+Cheaper, data is already gathered.

Question 9

Give 2 Disadvantages of Secondary Research.

Answer 9

• May be out of date.

- Info is also available to competitors.

Question 10

What is Quantitative Research?

Answer 10

Numerical data that’s analysed statistically to identify trends and patterns.

Question 11

What is Qualitative Research?

Answer 11

Non-numerical data that requires interpenetration for the information to be useful.