Marketing

Question 1

what is market segmentation?

Answer 1

Splitting customers into groups and then marketing a product or service specifically to those groups

Question 2

Examples of market segmentation

Answer 2

gender, age, geographical location, socio-economic group, religion and lifestyle

Question 3

benefits of target marketing

Answer 3

Tailoring of products to meet the needs of particular groups of consumers. If a product meets the needs of a consumer, sales will increase.

Sale of products in the most appropriate places to reach the chosen target audiences. This can maximise sales.

Pricing will be set to reflect what a target market will be willing to pay for a product or service. This can maximise profits.

Tailoring of marketing and promotion techniques to entice a company’s target market. This will prevent money being wasted on ineffective marketing.

Customers will become loyal to the brand and buy products in the range as incomes rise or lifestyle changes e.g. may go on a Club 18-30 holiday when young and then go on family holidays from the same company later on in life.

Question 4

what is field research?

Answer 4

Field research gathers primary information that is first-hand information. It has been collected by the business for a specific purpose.

Question 5

what is desk research?

Answer 5

Desk research gathers secondary information that is second hand information. It has been collected for a different purpose.

Question 6

methods of field research

Answer 6

face-to-face interview
postal survey
focus group
hall test
telephone interview
online survey
observation

Question 7

methods of desk research?

Answer 7

The businesses or competitors sales figures
Newspapers
Websites
Government publications e.g. the Census
Commercial publications e.g. Keynote and Mintel reports

Question 8

what are some of the advantages of field research?

Answer 8

• only the business has access to the findings
• the business will know the date it was carried out
• it has been collected for a specific purpose

Question 9

what are the disadvantages of field research?

Answer 9

• it is time-consuming
• it is expensive to train employees

Question 10

what are the advantages of desk research?

Answer 10

• easy access to information
• inexpensive
• the business does not need to conduct or analyse the data themselves

Question 11

what are the benefits of a hall test

Answer 11

• ask respondents further questions
• can see respondents reactions first hand

Question 12

what are the costs of a hall test

Answer 12

• the respondent may feel obliged to give a positive response

Question 13

what are the benefits of a telephone survey

Answer 13

• can reach a large geographical area
• inexpensive

Question 14

what are the costs of a telephone survey

Answer 14

• low response rates as they can be seen as ‘nuisance calls’

Question 15

what are the benefits of an online survey

Answer 15

• you can get feedback quickly
• can send it to a large sample size

Question 16

what are the costs of an online survey

Answer 16

• limited to people with internet access

Question 17

what are the benefits of a focus group

Answer 17

• Can gain information from respondents body language, facial expressions, tone
• Can explore topics in depth

Question 18

what are the costs of a focus group

Answer 18

• data can be harder to analyse
• can be expensive to pay respondants to participate

Question 19

what are the benefits of a face to face interview

Answer 19

• two-way communication
• can clear up any misunderstandings

Question 20

what are the costs of a face to face interview

Answer 20

• can be expensive
• business needs to train staff how to interview

Question 21

what are the benefits of a postal survey

Answer 21

• inexpensive
• can target specific postcodes

Question 22

what are the costs of a postal survey

Answer 22

• low response rate as seen as ‘junk mail’

Question 23

what are the benefits of observation

Answer 23

• can see real-life behaviours in action

Question 24

what are the costs of observation

Answer 24

• analysis of the observation could be bias