Marketing

Question 1

What is marketing?

Answer 1

Finding out the needs of customers and then meeting these needs profitably

Question 2

What are the three main purposes of marketing?

Answer 2

Identifying and understanding customers

Informing customers

Increasing sales

Question 3

What is market research?

Answer 3

How businesses collect data on whether or not their product or services will be bought

Question 4

What is the target market?

Answer 4

A group of customers to whom a business aims to sell its products

Question 5

What is the purpose of market research?

Answer 5

To identify and understand customer needs

Question 6

What is primary research? (Field research)

Answer 6

Data that is collected first hand, often in the form of questionnaires, interviews and focus groups

Question 7

What are the advantages of questionnaires?

Answer 7

Cheap to carry out
Easy to target customers

Question 8

What are the disadvantages of questionnaires?

Answer 8

People may not understand the questions
Not all customers will complete the questions

Question 9

What are the advantages of interviews?

Answer 9

The questions can be explained

It’s easy to target certain types of consumers

Question 10

What are the disadvantages of interviews?

Answer 10

It’s an expensive method

Not everybody likes being interviewed

Question 11

What are the advantages of trialling?

Answer 11

A good way to see if the product is what people want

Reduces the risk involved in producing large quantities

Question 12

What are the disadvantages of trialling?

Answer 12

Trials are costly to set up in the short term

The area chosen may not fully reflect the target market which may lead to unreliable conclusions

Question 13

State the advantages of focus groups

Answer 13

Focus groups are chosen to represent the target market for a business, so the data from them is usually very accurate

The ability to ask further questions means that more in depth responses are gained

Question 14

State the disadvantages of focus groups

Answer 14

It will only be a small group

Usually costly to carry out

Question 15

What is secondary research (desk research)?

Answer 15

Refers to data that already exists

Question 16

State the advantages of websites

Answer 16

A quick way to obtain data

A cheap way to obtain data (compared to primary)

Question 17

State the disadvantages of websites

Answer 17

The data may not be up-to-date

The data may not match the purpose of the market research required

Question 18

State the advantages to a business of using Census data

Answer 18

Information comes from a lot of people
It’s already collected and analysed, reducing the cost to business

Question 19

State the disadvantages of a business using census data

Answer 19

Information has not been collected to meet the specific needs of the business

Question 20

State the advantages to a business using data from newspapers and magazines

Answer 20

Such information is up to date, cheap and is a good source of ideas

Question 21

State the disadvantages to a business using data from newspapers and magazines

Answer 21

Information will be general and not specific to the business

Question 22

State the advantages of internal data

Answer 22

Cheap to collect, readily available and is specific to the business

Question 23

State the disadvantages of internal data

Answer 23

Data is historical - it looks at what has happened, not what will happen

Question 24

Define qualitative data

Answer 24

Data based on the opinions of those being asked

Question 25

Define quantitative data

Answer 25

Data collected that is based on facts or numbers; it is usually easier to analyse than qualitative data

Question 26

Give an advantage and disadvantage of qualitative data

Answer 26

It helps a business to understand what customers are thinking and what they want

Information may only be provided by a limited number of people

Question 27

Give an advantage and disadvantage of quantitative data

Answer 27

Easy to analyse - it can be gathered from a lot of people

Limits how much people can say about what they like or dislike