Market Research (1.1.2)

Question 1

What is Market Research?

Answer 1

Market Research is used to predict market characteristics and trends, to identify customer wants and needs and to reduce the risk of failure. It can be used to identify market size, competition, types of consumers, consumer behaviour, trends, regional differences and success and failure.

Question 2

What are the two types of Market research?

Answer 2

Primary and Secondary Market Research

Question 3

What is Primary Market Research?(5 Examples)

Answer 3

It is brand new information gathered by the business which is exclusive to your business. E.g. Surveys, Questionaries, Focus Groups, Experiments and Observations.

Question 4

Advantages and Disadvantages of Primary Market Research? (1 Advantage, 1 Disadvantage)

Answer 4

Advantage:
Brand new info exclusive to you as a business.
Disadvantage:
Could be bias leading to inaccurate results and its very time consuming and expensive to gather the data.

Question 5

What is Secondary Market research?

Answer 5

Research that has already been gathered by past Businesses. E.g. Past sales Data, Market Reports, News.

Question 6

Advantages and Disadvantages of Secondary Market Research? (1 Advantage, 3 Disadvantages)

Answer 6

Advantage:
Its quick and easy to access large amounts of data.
Disadvantage:
However it can be expensive, competitors may also have access to it so no competitive advantages and the data could not be in date or relevant to the business in any way.

Question 7

What are Methods of Market Research using ICT? (3 examples)

Answer 7

Online Surveys: Using email lists and websites to complete surveys.
Social Media: Build a relationship with customers and get feedback.
Databases: Customer loyalty Schemes to gather purchasing data.

Question 8

What is a Survey?

Answer 8

The Process of collecting and analyzing data from many individuals. Aims to determine insights about a group of people.

Question 9

Is a survey Quantitative or Qualitative and Primary or Secondary?

Answer 9

Both Qualitative and Quantitative and Primary Research

Question 10

Advantages and Disadvantages of Surveys?
(3 Advantages and 3 Disadvantages)

Answer 10

-More Cost Affective
-Provides Good Data
-Avoid Need for interaction

-Responders may not provide accurate answers (bias)
-Making wrong questions can lead to inaccurate data
-Could skip questions and quit

Question 11

What are Focus Groups?

Answer 11

A group of people assembled to participate in a discussion about a product before its launched to provide feedback

Question 12

Are Focus Groups Quantitative or Qualitative and Primary or Secondary?

Answer 12

Primary Research and Qualitative Data as asking for opinions

Question 13

Advantages and Disadvantages of Focus Groups?
(5 Advantages and 5 Disadvantages)

Answer 13

-Rich
-In depth
-Pretty Flexible
-cost-effective
-speedy

-No conclusion
-messy data
-requires trained moderator
-difficult to analyze data
-may not be representative

Question 14

What are Telephone Interviews?

Answer 14

Form of Market Research carried out over the telephone.

Question 15

Is a Telephone interview Quantitative or Qualitative and Primary or Secondary?

Answer 15

Qualitative Data as talking to people about their wiews and opinions. Primary Research

Question 16

Advantages and Disadvantages of Telephone Interviews?
(3 Advantages and 3 Disadvantages)

Answer 16

-Easier
-Less costly than in person interview
-no travel costs to attend interview

-Responders have to answer the call
-behaviour/body language cant be observed
-shorter interviews

Question 17

What are Observations?

Answer 17

Technique which involves directly observing customers or another target audience in their natural environment. How shoppers stop outside of shops, where they go, where they enter the store etc…

Question 18

Are Observations Quantitative or Qualitative and Primary or Secondary?

Answer 18

Quantitative and Primary

Question 19

What is Test Marketing?

Answer 19

Method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis.

Question 20

Advantages and Disadvantages of Observations?
(2 Advantages and 2 Disadvantages)

Answer 20

-See with your own eyes (accurate)
-Dont have to ask them

-could be bias
-have to have the ability to observe things

Question 21

Is Test Marketing Quantitative or Qualitative and Primary or Secondary?

Answer 21

Can be Qualitative or Quantitative and is Primary Research

Question 22

Advantages and Disadvantages of Test Marketing?
(3 Advantages and 4 Disadvantages)

Answer 22

-Distribution is guaranteed
-helps establish brand and audience
-competitive advantage

-Cant get reactions
-costly and time-consuming
-competition can copy
-difficult to find representative sample

Question 23

What are Market Research Reports?

Answer 23

A document that summarizes the findings of a market research report. Helps businesses to understand their needs, preferences and behaviours of potential customers and competitors. Typically includes market size , trends, opportunities, challenges, customer satisfaction etc..

Question 24

Is a Market Research Report Quantitative or Qualitative and Primary or Secondary?

Answer 24

Can be primary or secondary reserach and it can also be Qualitative or Quanitative.

Question 25

Advantages and Disadvantages of a Market Research Report? (3 Advantages and 3 Disadvantages)

Answer 25

-help to make informed decisions -makes sure targeting right market -competitive edge -costly and time-consuming -inaccurate or outdates if biased resources -confusing

Question 26

What is Google?

Answer 26

A search engine on the internet to search up lots of different topics

Question 27

Is Google Quantitative or Qualitative and Primary or Secondary?

Answer 27

Primary and Secondary and both Quantitative and Qualitative

Question 28

Advantages and Disadvantages of Google? (4 Advantages and 5 Disadvantages)

Answer 28

-Accurate Results -Lots of options -Relevant -Helpful -May not show you all relevant date just what it wants you to see -may track personal data and prioritize data -not the best for niche topics -can be costly online -time-consuming

Question 29

What are Loyalty Schemes?

Answer 29

Marketing stratergies that companies use to encourage continued customer loyalty and long-term repeated business.

Question 30

Are Loyalty Schemes Quantitative or Qualitative and Primary or Secondary?

Answer 30

Quantitative as collecting up data and both Primary and Secondary Data.

Question 31

Advantages and Disadvantages of Loyalty Schemes? (4 Advantages and 3 Disadvantages)

Answer 31

-Helps Retain Customers -Improve Sales -Helps with marketing campaigns -helps with business growth -Customer stalking (invading privacy) -reduced profits -decreased brand value

Question 32

What is social Media?

Answer 32

Websites and applications that allow people to create and share content or participate in social networking.

Question 33

Is Social Media Quantitative or Qualitative and Primary or Secondary?

Answer 33

Secondary Market Research and Both Quantitative and Qualitative

Question 34

Advantages and Disadvantages of Social Media? (4 Advantages and 4 Disadvantages)

Answer 34

-Helps us keep connected -Shares info for learning -can give business opportunities looking to promote business/help grow -Entertainment -Cyber Bulling is quite big/common -Personal info collected (Not much privacy) -can become addictive -can get fake/inaccurate news

Question 35

What are Online surveys?

Answer 35

A questionnaire that you can complete over the internet.

Question 36

Are Online Surveys Quantitative or Qualitative and Primary or Secondary?

Answer 36

Primary Research and can be both Quantitative and Qualitative

Question 37

Advantages and Disadvantages of Online Surveys? (6 Advantages and 4 Disadvantages)

Answer 37

-Cost effective -Fast -Convenient -Large/ diverse -reduce bias -Enhance data -May exclude some of the population -duplicate responses -Sampling issues -bias responses

Question 38

What is Market Segmentation?

Answer 38

When the Market is split into different sections to narrow down which section of the market is likely to buy your products.

Question 39

What are the ways to segment a market? (6 ways)

Answer 39

-Age -Gender -Income -Hobbies/Lifestyle -Interests -Location

Question 40

Why should Brands segment the Market?

Answer 40

Brands segment the market so they can target certain people and not everyone. If they were to advertise their brand to everyone a lot of people wouldn't be interested so it would be a waste of money whereas by segmenting the market and only targeting a certain group they aren't wasting money. It can lead t0 more sales if you focus on target market.

Question 41

Why Brands shouldn't segment the Market?

Answer 41

If Brands segment their market then a business could be missing out on sales due to the people interested in a hobby that includes the brands products. It could be that a person is starting to do horse riding and need all the equipment but if a Brand only targets people who already horse ride then they are missing out on the sales of the new people. It also means there isn't much room to grow as only scouting one group.

Question 42

What are the Two different types of orientation in a business?

Answer 42

Product and Market Orientation

Question 43

What is Product Orientation?

Answer 43

Focusing efforts on a innovative Product the market may not have know it needed. E.g. Tesla, Dyson, Apple

Question 44

What are the Advantages of product Orientation? (2 Advantages)

Answer 44

-Less Competition -Premium Price

Question 45

What is the Disadvantage of product Orientation? (1 Disadvantage)

Answer 45

-High Risk

Question 46

What is Market Orientation?

Answer 46

Focusing efforts on working out what the market wants then producing a product to meet those needs. E.g. The Body shop ,Nike ,Amazon

Question 47

What is the Advantage of Market Orientation? (1 Advantage)

Answer 47

-Low Risk

Question 48

What are the Disadvantages of Market Orientation? (2 Disadvantages)

Answer 48

-More Competition -Competitive Price

Question 49

Why is Product Orientation Risky?

Answer 49

This is because you don't know if your product will sell and if it doesn't you don't have any other products to sell. However, focusing on one product can mean you can charge more for it because you have little to no competition.

Question 50

Why is Market Orientation more competitive?

Answer 50

It is more competitive as there will be more businesses aiming to supply the market with that type of product/service knowing that they are in demand. Online shopping has increased this.