Marketing

Question 1

Definition of marketing?

Answer 1

It is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Question 2

Definition of market research

Answer 2

The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better informed decision making

Question 3

What is the purpose of market research?

Answer 3

1. Info ensures that they are providing the products which customers are most likely to buy.
2. It enables them to price the products at an acceptable level for consumers.
3. Sometimes gives info about competitors

Question 4

What is primary/field research?

Answer 4

Involves collecting original info by the business by making direct contact with consumers and members of the public.

Question 5

Advantages of primary research

Answer 5

1. Detailed info can be gathered and opinions obtained
2. Info is up to date and collected for a specific purpose
3. Info is taken directly from the people who are or could be business consumers

Question 6

Disadvantages of primary research

Answer 6

1. It costs both time and money to design the primary research, carry it out and analyse the data
2. Inaccurate - people may not give accurate answers

Question 7

How can primary research be completed?

Answer 7

Questionnaires and interviews
Consumer panels
Testing
Observation

Question 8

Advantages of questionnaires and interviews

Answer 8

1. It is designed to find out exactly the info that the business needs
2. The questioner can help the member of the public to understand the questions

Question 9

Disadvantages of questionnaires and interviews

Answer 9

1. Some people resent being stopped and questioned on the street or on the phone
2. It is a slow method and can be expensive, especially for smaller businesses

Question 10

What are the advantages of observation?

Answer 10

1. Not costly for the business
2. Consumers not even aware it is happening

Question 11

Disadvantages of observation?

Answer 11

1. Less accurate and is open to interpretation
2. Not suitable for all products

Question 12

Consumer panels advantages

Answer 12

1. Very detailed info can be gathered
2. The panel members are skilled and impartial

Question 13

Consumer panel’s disadvantage

Answer 13

It is an expensive method so it is suitable only for large companies

Question 14

Advantages of Testing

Answer 14

1. Test are straight forward to organise
2. Consumers first hand opinions are given

Question 15

Disadvantages of testing

Answer 15

1. May not test a cross section of the publics
2. Not suitable for all products

Question 16

What is secondary/desk research?

Answer 16

Involves collecting information that already exists

Question 17

What are some secondary methods?

Answer 17

Public libraries
Newspapers
Specialist magazines
Data already collected by the business itself

Question 18

Advantages of secondary research

Answer 18

1. Info is cheaper to obtain
2. Info is available immediately
3. Data available covers a wide range of sources

Question 19

Disadvantages of secondary research

Answer 19

1. Info may be out of date depending on when it was collected
2. Info is available to every other business

Question 20

What is quantitative research?

Answer 20

It is concerned with data and addresses questions such as “how many” “how often” “who” “when”. The results of it will generally be numerical form.

Question 21

What is qualitative research?

Answer 21

It is based on opinions. It deals with questions such as “why” “would” and “how”. It aims to understand why customers behave in a certain way or how they respond to

Question 22

How is market research used?

Answer 22

It can be:
Collated and presented
Analysed - to understand what the data tells the business
Recommendations made - the business should say what should be done as a result of the findings