Market research chap51

Question 1

What are the 3 purposes of market research?

Answer 1

• describe the market
• explain the market
• predict the market

Question 2

What is meant by ‘describe the market’?

Answer 2

• identify the customers
• identify trends
• identify market share

Question 3

What is meant by ‘explain the market’?

Answer 3

• understand changes in the market
• reflect on success or recent market strategies
• understand similarities/differences

Question 4

What is meant by ‘predict the market’?

Answer 4

• predict how consumers might react to changes

- predict competitor changes

Question 5

Examples of primary market research…

Answer 5

Observation
- watching consumers and users of products
Consumer panels
- samples of new products are sent to panel members who then fill in forms to give their response
Focus groups
- usually consists of 8-10 people who are offered various stimuli and their response is recorded
Trial Marketing
- testing the waters before the full launch of a product
- may trial their product in a supermarket

Question 6

examples of internal sources of secondary research…

Answer 6

• previous survey results
• sales/data figures
• customer information

Question 7

examples of external sources of secondary research…

Answer 7

• market research companies
• the internet
• newspapers and magazines

Question 8

Quantitative research vs qualitative research…

Answer 8

quantitative research concentrates on numerical data and what consumers actually purchase or use. However qualitative research helps provide an understanding of how/ why thing are the way they are.