Topic 9-Market Research

Question 1

What is Marketing

Answer 1

Marketing identifying and anticipating customer needs,an exchange taking place that is mutually beneficial with the overall purpose of exceeding customer expectations

Question 2

Define Market Research

Answer 2

The collection of information about the buyers and sellers in a market.It reduces risk but involves an opportunity cost

Question 3

The purpose of Market Research

Answer 3

1. To identify markets-This allows a firm to see if there will be a market and who their target market will be
2. To test market-This involves testing a product on a small group before hopefully launching it across the whole market
3. To find out about the competition-This allows a firm to see what they have tondo in terms of developing USP’s and gaining a competent edge
4. To find out customers views about the business-This allows a firm to see how they are perceived by their customers and identifies the areas that they need to work on
5. To help decide on price
6. It provides information on competition
7. It reduces the chances of making expensive mistakes
8. It helps to develop the most appropriate marketing strategy

Question 4

Primary (field) Research

Answer 4

This involves the collection of data for the first time for a specific purpose.Examples include surveys,focus groups,consumer panels,interviews and questionnaires

Question 5

Advantages of Primary Research

Answer 5

• Can aim questions directly at your Research objectives
• Can gain the latest information from your marketplace and gain a competitive advantage
• Can find out why customers act in a particular way

Question 6

Disadvantages of primary research

Answer 6

• Expensive
• Takes time to gather which is a problem in fast changing markets
• Need other data to compare it to

Question 7

Secondary (desk) Research

Answer 7

This involves using information that already exists in order to gain a picture of the market.Examples:Newspapers,Internet Research, Trade Press and reports such as social trends

Question 8

Advantages of Secondary Research

Answer 8

• Low cost
• Good overview
• Gained quickly

Question 9

Disadvantages of the Secondary research

Answer 9

• Out of date
• Not specific for your investigation
• Biased

Question 10

Quantitative Research

Answer 10

This involves the collection of numerical data which can then be analysed to identify general trends or patterns.All respondents are asked the same questions and they are not able to develop their answers.It allows a firm to see how many people act in a certain way

Question 11

Qualitative Research

Answer 11

This is used to find out how people feel and why they act in a particular way.The information is gathered through a discussion. Examples include consumer panels,focus groups and in depth interviews

Question 12

Face to face

Answer 12

Involves a set number of questions in order

Question 13

Advantages of face to face

Answer 13

• Higher response rates and more accurate responses
• Researchers can clear up misunderstandings
• Images can be used

Question 14

Disadvantages of face to face

Answer 14

• Time consuming and expensive
• Hidden bias in choice of respondents
• Small sample reducing the validity of the results

Question 15

Telephone survey

Answer 15

Respondents are normally selected randomly

Question 16

Advantages of telephone survey

Answer 16

• Low cost
• A large geographical area can be sampled
• Results can be gained more quickly using a Computer Assisted Telephone Interview (CATI) System

Question 17

Disadvantages of telephone survey

Answer 17

• Sample may not be truly representative
• No use of images
• Negative reaction of respondents

Question 18

E-Survey

Answer 18

A questionnaire is sent to selected individuals via e-mail with the respondents then completing it snd sending it back

Question 19

Advantages of E-Survey

Answer 19

• Quick
• Cheap
• Target specific individuals

Question 20

Disadvantages of E-Survey

Answer 20

• Low response rates
• Less secure
• Sample may not be representative

Question 21

Focus groups

Answer 21

This is a form of qualitative research where group individuals are asked to share their views on a particular product or market.They normally contain between 6 and 10 people and are from the relevant market segments

Question 22

Advantages of focus groups

Answer 22

• Results can be gained in a short period of time
• Provide explanations as to why people respond in a particular way
• Can provide complex and detailed anwsers

Question 23

Disadvantages of focus groups

Answer 23

• Small scale so the results might not be representative
• Results are difficult to analyse
• Results are influenced by the researcher leading the focus group

Question 24

Sampling

Answer 24

This involves selecting the group of people whose views you will ask for to research the market

Question 25

Random Sampling

Answer 25

This involves selecting a sample by chance.Everyone has an equal chance of being selected.Every 10th person in the street or every 50th person on the electoral registers

Question 26

Quota sampling

Answer 26

This involves dividing the population up and then selecting samples fro, within each group that match the breakdown of the population.This is better if you are targeting specific groups of customers