Unit 2 - 2.2 - Market Research Flashcards
What is market research?
The collection of data on customer habits to help decision-making in marketing.
Market research can involve surveys, focus groups, and analysis of sales data.
Define target market.
A group of customers to whom a business aims to sell its products.
The target market may include both other businesses and consumers.
Marketing
What is primary research?
Data that is collected first hand, often in the form of questionnaires, interviews, and focus groups
Sometimes referred to as ‘field’ research.
What are common methods of collecting primary research data?
- Questionnaires
- Interviews
- Focus groups
- trailing
True or False: Primary research is also known as secondary research.
False
Primary research is distinct from secondary research, which involves analyzing data that has already been collected.
Fill in the blank: Primary research is sometimes referred to as _______.
‘field’ research
What is an interview?
A person asks an individual or a group of people questions and records their answers
Interviews can be conducted in person or on the phone.
List two advantages of interviews.
- The questions can be explained.
- It is easy to target certain types of consumers.
List two disadvantages of interviews.
- It is an expensive method.
- Not everybody likes being interviewed.
True or False: Interviews are a cheap method of gathering information.
False
What is a questionnaire?
A set of questions sent out to selected people in the post or asked online.
Questionnaires are commonly used in research to gather information from a specific audience.
List two advantages of using questionnaires.
- Cheap to carry out.
- Easy to target customers, for example, people who buy cameras online.
These advantages make questionnaires a popular choice for market research.
List two disadvantages of using questionnaires.
- People may not understand the questions.
- People may not be interested in the product, so may answer dishonestly or not at all.
These disadvantages can affect the reliability and validity of the data collected.
What is trialling in the context of product sales?
A product is sold for a short period, usually in one region of a country.
What happens if a product sells well during the trial period?
The business will go into full production.
List two advantages of trialling a product.
- A good way to see if the product is what people want.
- Reduces the risk involved in producing large quantities.
What is a disadvantage of trialling a product?
The people or area tested must be representative of the total market.
True or False: Trialling a product eliminates all risks associated with large-scale production.
False
Fill in the blank: A disadvantage of trialling is that the findings will not help the business if the tested area is not _______.
[representative of the total market]
What is a focus group?
A small group of people asked to use a product or think about an advertisement and provide their opinion.
What is the purpose of feedback from a focus group?
To help the business re-design the product or advertisement.
What is an advantage of using a focus group?
The people chosen will be representative of potential customers.
What is a disadvantage of focus groups?
It will only be a small group.
What is another disadvantage of focus groups?
It is usually costly to carry out.
What is secondary research?
The collection of data using research and information provided by others, such as magazines, journals, and the internet
Often called desk research.
What are common sources for secondary research?
- Magazines
- Journals
- Internet
These sources provide existing data and insights collected by others.
True or False: Secondary research involves gathering new data firsthand.
False
Secondary research relies on existing data rather than original data collection.
Fill in the blank: Secondary research is often called _______.
[desk research]
What type of information do articles in newspapers and magazines often describe?
People’s interests and current fashions
Articles provide insights into popular trends and societal interests.
What are the cost implications of obtaining information from newspapers and magazines?
Cheap; involves only the cost of the newspaper or journal, or may be free on the internet
This accessibility makes it a viable option for many readers.
What is a key characteristic of the information found in newspapers and magazines?
General and not specific to the business
This means the information may not cater to niche or specialized business needs.
Fill in the blank: Articles in publications may even be available ______ on the internet.
[free]
This increases the accessibility of information for a wider audience.
What is a good source of ideas mentioned in the context of newspapers and magazines?
Information from articles
Articles can inspire new thoughts and concepts for various purposes.
What is a primary source of data mentioned?
Data from newspapers and magazines
What are two advantages of using articles in publications for data?
- Up to date
- Cheap (involves only the cost of the newspaper or journal or may even be available free on the internet)
What type of information do articles in publications often describe?
People’s interests and current fashions
What is a disadvantage of information from newspapers and magazines?
Information will be general and not specific to the business
Fill in the blank: Articles in publications are a good source of _______.
[ideas]
What type of information can be found from websites about other companies?
Information about what they sell and the prices they charge
This includes details on products and services offered by competitors.
What is one advantage of collecting data from websites?
Cheap to collect and readily available
This makes it an accessible resource for businesses.
How can data from websites assist a business?
Helps decide what to produce and the price to charge
This can lead to more informed business decisions.
What is a disadvantage of using data from websites?
The information will need careful interpretation by the business
Misinterpretation can lead to poor decision-making.
What is internal data?
Data collected by the business about its past sales, profits, and customer feedback.
Internal data is specific to the business and reflects its own operations and performance.
What are the advantages of internal data?
• Cheap to collect
• Readily available
• Specific to the business
Internal data can be gathered without significant costs and is often easily accessible.
What is a disadvantage of internal data?
It is historical and looks at what has happened, not what will happen.
This limitation means that while internal data provides insights into past performance, it may not be predictive of future trends.
What is qualitative data?
Data that involves finding out the opinions of customers who use a product or service
Often collected through primary research methods.
What is an example of qualitative data collection?
Finding out why people like or dislike the taste of sweets
This could involve interviews or focus groups.
What is one advantage of qualitative data?
Helps a business to understand what customers are thinking and what they want
Provides deeper insights into customer preferences.
What is one disadvantage of qualitative data?
Information may only be provided by a limited number of people
This can lead to biased results.
What is quantitative data?
Data that provides facts about what people do, what they spend, or where they shop
Often involves numerical data.
What is an example of quantitative data?
How often a person goes to the cinema
This can be measured numerically.
What is one advantage of quantitative data?
It is easy to analyse and can be gathered from a lot of people
Allows for statistical analysis.
What is one disadvantage of quantitative data?
Limits how much people can say about what they like or dislike
Often lacks depth in understanding customer sentiments.
