1.1.2 market research

Question 1

What is Market Research?

Answer 1

Market research is the process of gathering, analyzing, and interpreting information about a market, including information about the target audience, competitors, and industry trends.

Question 2

Purpose of Market Research

Answer 2

The primary purpose of market research is to understand consumer needs and preferences, identify market opportunities, and inform business decisions to reduce risks and enhance profitability.

Question 3

Types of Market Research

Answer 3

Market research can be categorized into two main types:

primary research (data collected firsthand)

secondary research (data collected from existing sources).

Question 4

Primary Research

Answer 4

Primary research involves collecting original data directly from sources, such as surveys, interviews, focus groups, and observations, tailored to specific research objectives.

Question 5

Secondary Research

Answer 5

Secondary research involves analyzing existing data that has already been collected by others, such as reports, studies, and market analysis, to gain insights without conducting new research.

Question 6

Qualitative Research

Answer 6

Qualitative research focuses on understanding consumer behavior, motivations, and attitudes through methods like interviews and focus groups, providing in-depth insights.

Question 7

Quantitative Research

Answer 7

Quantitative research involves collecting numerical data through surveys and experiments to quantify behaviors, preferences, and trends, allowing for statistical analysis.

Question 8

Market Segmentation

Answer 8

Market segmentation is the process of dividing a broad target market into smaller, more defined groups based on characteristics such as demographics, psychographics, and behavior.

Question 9

Competitive Analysis

Answer 9

Competitive analysis involves assessing competitors’ strengths and weaknesses, market positioning, and strategies to identify opportunities and threats in the market.

Question 10

Benefits of Market Research

Answer 10

Informed decision-making
Understands customer preferences
Identifies market opportunities
Reduces risks
Improves product development
Enhances customer satisfaction
Provides competitive advantage

Question 11

drawbacks of market research

Answer 11

Can be costly
Time-consuming process
Data reliability issues
Market conditions may change
Over-reliance on data
Complexity in analysis
Limited scope of insights