Learning Aim B

Question 1

Role of market research

Answer 1

Determine business objectives, continuous analysis using digital and traditional methods, changes over time, size and structure of market, market segments, customer needs and preferences, customer experience and satisfaction, trends, awareness of brand, competition, internal and external factors, desirability of new products, feasibility of entry into new markets, customer perception.

Question 2

Primary market research methods

Answer 2

Interview/survey/questionnaire/polls, direct observation, visits and mystery shopping, focus groups and digital communities, test, trials and pilot studies.

Question 3

Secondary market research methods

Answer 3

Internal: data on customers, loyalty schemes, electronic point of sale (EPOS), website monitoring, financial/accounting records. External: external company accounts and reports, government statistics, information from data companies and specialist market research agencies, trade journals and media sources.

Question 4

Appropriateness

Answer 4

Cost, accuracy, currency, reliability: consistency or repeatability of results, validity of sample intention, sufficiency and results.

Question 5

Macro environment

Answer 5

Political, economic, social, technological, environmental, legal/regulatory.

Question 6

Micro environment

Answer 6

Customers, competitors, suppliers, intermediaries, publics.

Question 7

Internal environment

Answer 7

Resources: financial, non-financial; people and their skills; equipment: systems, processes, digital capabilities.

Question 8

Tools used to assess the marketing environment

Answer 8

PESTEL analysis of external factors affecting marketing, SWOT analysis of internal and external factors affecting marketing: strengths and weaknesses: internal analysis of production capacity, branding, product portfolio, staff skills, access to materials and suppliers; opportunities and threats: external analysis of market demand, changing technology, competitor strength; Ansoff Matrix – to determine product and market growth strategies; Boston Matrix – to classify products within the product portfolio into four distinct groups; market mapping – to identify where there are ‘gaps’ in the market; competitor analysis – to assess the strengths and weaknesses of competitors, to identify opportunities for improvement within an organisation; Porter’s Five Forces – threat of new entrants, threat of substitutes, competitive rivalry, bargaining power of suppliers, bargaining power of buyers.