Market Research/positioning

Question 1

The marketing map

Answer 1

Illustrates the range of posittions that a product can take in a market based on two dimensions that are important customets

Question 2

Product differentiaton

Answer 2

Arises when customes perceive a distinct difference between your product and alternatives provided y competitors

Question 3

Product orientation

Answer 3

This means the business fcuses on the product process and the product itself. Most of its efforts into developing and making products which it believes consumers want and which it will sell well.

Question 4

Market orientation

Answer 4

A business which continually identifies, review and analyses consumer needs. It is led by the market

Question 5

Adv of being market orientated rather than product orientated

Answer 5

• it can respond more quickly to changs in the market because of its use of markt info
• it will be in a stronger position to meet the challenge of new comp entering the maret
• more anticpating to market change
• more confidence that launch of a new product will be a success

Question 6

Market research definition?

Answer 6

This involves the gathering, collecting, presenting and analysing information about the market and consumers in it

Question 7

What are the two types of market research?

Answer 7

• primary

- secondary

Question 8

What is primary research?

Answer 8

-data which did not exist before (also known as field research )

Question 9

What is secondary research?

Answer 9

Information which someone else collects and shares with others

Question 10

What are the methods of primary research?

Answer 10

• questionnaires
• postal surveys
• telephone interviews
• personal interviews
• focus groups or consumer panels
• observation
• test marketing

Question 11

What is test marketing

Answer 11

-selling a new product in a restricted area before a national launch

Question 12

What is a questionnaire?

Answer 12

A list of written questions

Question 13

What are methods of obtaining secondary research?

Answer 13

• internal
• external
• monetary fund
• gov publications
• commercial publications

Question 14

What is internal research?

Answer 14

-within the business eg reports, data bases, company accounts etc

Question 15

What is external research?

Answer 15

Data available from sources outside the business, Government , regulated bodies, outsourcing etc

Question 16

What is qualitative research?

Answer 16

The collection of data about attitudes, beliefs and intentions

• open ended responses
• more detailed and specific
• more reliable

Question 17

What is quantitative research?

Answer 17

The collection of data that can be quantified

• numerical data
• sales figures
• demographics

Question 18

What is market positioning?

Answer 18

This is the customers perceptions about the products that a business sells

Question 19

What is observation?

Answer 19

This is where the market researches observe the behaviour of the customers, however there is no feedback to explain behaviours

Question 20

Explain what Focus groups and panels are

Answer 20

• very detailed info can be collected here
• number of customers are invited to attend a discussion led by market researches
• group must be representative

Question 21

Explain human behaviour as a limitation of market research?

Answer 21

• society tends to change their opinions often so an honest and truthful answer now could change in the future due to different factors.
  The act of consuming goods from consumes is relatively unpredictable

Question 22

Explain sample and bias as a limitation of market research?

Answer 22

• the group must be representing of the population
• however even this could be different if diff members of the population were questioned
• the greater the sampling discrepancy, the less relatable the sample

-questionnaires need to be carefully asked so that the researcher isn’t asking closed questions or leading customer to specific answers causing bias and unreliable results

Question 23

Use of ICT to support market research

Answer 23

• company websites
• social media
• database

Question 24

Benefits of market segmentation

Answer 24

• business can produce different products for different market segments and increase revenue
• Customers will be more loyal to a business that meets their needs
• business can avoid wasting promotional resources

Question 25

List some approaches a business may use to to position its products

Answer 25

• the benefits offered by the products
• the usp
• the attributes of the product
• the origin
• the classification

Question 26

What is competitive advantage

Answer 26

-a set of unique features of a company and its products that are perceived by customers as significant and superior to competition

Question 27

List the ways a competitive advantage

Answer 27

• product design
• product quality
• promotion
• delivery time
• market segmentation
• economies of scale
• customer service
• flexibility
• ethical stance

Question 28

Economies of scales as a competitive advantage

Answer 28

• firms that can produce efficiently at low cost can afford to charge lower prices and therefore gain a competitive advantage by being a cost leader in their market.
• larger firms are likely to be exploited to this adv