Unit 3: Chapter 11

Question 1

Define Market Research

Answer 1

the process of gathering, analysing, interpreting information/data about a market.

Question 2

What are the two orientations of creating a product?

Answer 2

product orientated: makes the product then finds a market

market orientated: finds a product - identify needs (market research), makes a product to meet them.

Question 3

What are the advantages and disadvantages of product orientation?

Answer 3

You make what you are good at therefore you have high quality products. But it is more risky for business survival.

Question 4

What are the advantages and disadvantages of market orientation?

Answer 4

Higher chance of survival as you are making what customers need but you aren’t experienced in that type of product so it might not be successful.

Question 5

What are the
market research methods?

Answer 5

quantitative data + qualitative data

primary research + secondary research

Question 6

Define Quantitative Data and Qualitative Data

Answer 6

numerical answers (surveys etc.)

judgements and opinions (words) e.g. interviews

ideally both are needed for successful market research

Question 7

Define Primary and Secondary research

Answer 7

collection + collation of original data.

using information readily available that is collected by others.

Question 8

What are the pros and cons of primary research + some examples?

Answer 8

you have first hand data tailored to you, you have direct contact with potential/existing customers. but it is time consuming and expensive.

questionnaires, surveys, interviews

Question 9

What are the pros and cons of secondary research + some examples?

Answer 9

quick and easy to find but competitors also have the same info as you and it isn’t tailored to you.

online, google, articles

Question 10

Define sample

Answer 10

group of people selected to respond to a market research exercise

Question 11

Name 2 types of sampling + meaning

Answer 11

Random Sample: Every member of the population selected at random as a source of information for market research.

Quota Sample: selected based on certain characteristics (age, gender etc.)

Question 12

What are the two types of secondary research?

Answer 12

internal: research already there in your business (sales data etc.)

external: information outside of your business: media, articles, internet, competitors data

Question 13

Pros and Cons of Internal Secondary Research

Answer 13

tailored to your business + applicable. but could be irrelevant (not what you’re trying to find) and old.

Question 14

Pros and Cons of External Secondary Research

Answer 14

it is easy to collect (easily available + good for checking on competitors but could be outdated.

Question 15

How do you design a questionnaire?

Answer 15

less that 12 questions, concise, avoid open ended questions + logical order and decide a age group. don’t influence interviewee.

Question 15

What are some types of data presentations and when do you use them?

Answer 15

table/tally chart - recording raw data in original form. better to turn this into a graph/chart for presentation

chart - total figures for each piece of data.

graph - relationship between 2 sets of data (IV DV)

Question 15

Name all the types of primary research

Answer 15

questionnaires, interviews, online surveys, focus groups, test markets, interviews, observation.

Question 15

Why must you present your data?

Answer 15

Raw data must be transformed into a form easy to understand + legible. So that significant points can be clear.