The Purpose And Methods Of Market Research

Question 1

market reasearch

Answer 1

Process of gathering, analyzing and processing data relevant to marketing decisions

Question 2

What is a target markets?

Answer 2

The group of consumers which a business intends to sell a particular product.

Question 3

Market research is used to gather information about…

Answer 3

The level of demand for goods and services within the market
Requirements of customers - understand customer needs
Actions of competitors - gain in-site on strategies
Target market - identifying segments to decide which segment to focus on

Question 4

Types of data used in market research

Answer 4

Qualitative research
Quantitve research

Question 5

Qualitative data

Answer 5

Designed to uncover the attitudes and opinions of customers that affect their decision to purchase goods and services. Can’t be expressed as numbers. Not reliable if only small number of customers since it’s about opinions

Question 6

Quantitive data

Answer 6

Collection of numerical marketing information that can be analyzed statistically and stated in numbers only, Such as market size, how quickly its growing and a businesses market share.

Question 7

Methods of market research

Answer 7

Primary market research- uses data gathered for the first time - surveys, interviews, watching customers. Field
Secondary market research - uses data that has already been gathered - books, trade journals, newspapers. Desk

Question 8

Advantages of primary market research

Answer 8

• Valuable for managers because can be designed to meet precise needs of a business providing exact data.
• if extensive enough and questions enough customers, can provide very accurate data to help managers make decisions
• can help managers understand why customers make particular decisions

Question 9

Advantages of secondary market research

Answer 9

• Collected cheaply, some specialist info may be available for free
• Can provide good overview of an entire market at a relatively low cost
• Data is often accurate as it is based on extensive surveys of samples

Question 10

Drawbacks of PMR

Answer 10

• Can be expensive to conduct - particularly on a large scale enough to provide accurate data
• Can take considerable amounts of time to carry out. Managers may need info quickly.

Question 11

Drawbacks of SMR

Answer 11

• data can be outdated. Customer behavior may have changed overtime
• data is unlikely to meet business needs precisely. May be based on different income groups.

Question 13

How market research data is collected

Answer 13

Questionare - customers complete a form - often inexpensive, large group. People who respond often low and info may not be accurate

Interview - provide in depth information, respondents not influence by the views of others. Only limited numbers

Focus group
Internet research
Printed press

Question 14

Focus group

Answer 14

Discussion involving small number of customers, usually fewer then 10. Can be in depth, cover a range of topics. Will be detailed however numbers small and can be expensive

Question 15

Internet research

Answer 15

Businesses own website can conduct surveys and collect feedback. Can conduct secondary research into marketing issues. Lots of data on internet however not all suitable for business needs

Question 16

Printed press

Answer 16

Research can be conducted by reading papers, trade journals and magazines. Cheap but doesn’t meet business precise needs