test revision Flashcards
what is 2 types of market research
Field research
Desk research
definition of field research
Field research involves finding out primary information directly from the public/consumer
outline 2 advantages of field research
Information is gathered specific to your purpose
Information is up-to-date.
definition of desk research
This uses secondary data, which is information which is already available, either from inside the business or from outside the business
two ADVANTAGES of desk research
It is cheaper to access existing information rather than having to collect information from scratch
It is less time consuming to gather compared to field research.
two disadvantages of felid research
It is more expensive to gather compared to desk research.
It is more time consuming to gather compared to desk research.
two disadvantages of desk research
Information may be out of date.
Information is available to our competitors.
describe a survey
These are forms which contain a series of questions. They are designed to obtain answers to questions which will help gain peoples’ opinions.
A sample of people will be questioned.
Examples include: face-to-face, by telephone or by post
describe a consumer panel
This is when a group of people are gathered together and are given a product to look at. This allows initial reactions to be recorded. Their opinions are obtained on the design of the product, colour, shape etc and what they like and dislike about the product
describe a test market
The product is tried out on a small section of the market, in a limited area eg Aberdeen only.
Allows teething problems to be sorted out before the launch of the product nationally or worldwide
identify the four stages
introduction
growth
maturity
decline
describe intorduction
The product is launched on to the market.
It is heavily advertised and promoted at this stage in order to make customers aware of the product.
The product is making a loss for the firm.
describe growth
Sales are starting to increase.
The product is becoming known.
Advertising is continuing, although at a lower level than the initial launch.
The product is beginning to make a profit for the firm.
describe maturity
ales reach their peak and profit levels are at their highest.
The product is well established in the market.
Advertising is used as a reminder to consumers.
R & D costs are likely to have been paid off.
Competitors are introducing products to compete with ours.
Firms will try to stay at this point for as long as possible due to the high profits being made.
Firms will try to introduce new models or variations of the product, or revitalise their advertising campaign to promote sales.
describe decline
Sales and profits are falling.
The product becomes out-of-date.
There are more rival products on the market.
