Market Research Flashcards
(28 cards)
Define the term market research.
Market research is the process of gathering, analysing and interpreting information about a market.
What is the difference between product orientated and market orientated businesses?
> Product-orientated business focuses on the product itself and finds a market after production.
Market-orientated business conducts market research before product development to understand consumer wants.
What is a marketing budget?
A marketing budget is a financial plan for the marketing of a product or product range for a specified period of time.
What is primary research?
Primary research is the collection and ordering of original data via direct contact with potential or existing customers.
What are the advantages of primary research?
> Up to date and relevant data
Usually planned and first-hand
Effective for specific business problems
Not available to other businesses unless they conduct their own research.
What are the disadvantages of primary research?
> Expensive when interviewing individuals
Time-consuming and not immediately available.
Define a questionnaire.
A questionnaire is a set of questions to be answered as a means of collecting data for market research.
What are the advantages of questionnaires?
> Detailed qualitative information can be gathered
Customers’ opinions can be obtained
Can be carried out online, making it cheaper and easier.
What are the disadvantages of questionnaires?
> Answers can be inaccurate if questions are poorly prepared
Time and money-consuming to carry out
Analyzing results is time-consuming.
What is an online survey?
An online survey is the use of a target group to answer a series of questions over the internet.
What are the advantages of online surveys?
- Fast with quicker response times
- Easy for participants to complete
- Data can be quickly presented using IT tools.
What are the disadvantages of online surveys?
- Absence of interviewer can be expensive
- Cannot reach potential customers without internet access
- Risk of fraud with incentivized responses.
What is a focus group?
A focus group is a group of people, representative of the target market, who provide information through a group discussion.
What are the advantages of using a focus group?
- Collects detailed information about consumer tastes
- Interaction helps understand reasons for opinions
- Quicker and cheaper than individual interviews.
What are the disadvantages of using a focus group?
- Time-consuming if conducted by specialists
- Potential bias from dominant members
- Conversations can be influenced by others.
What are the advantages of interviews?
- Interviewer can clarify questions
- Detailed information about the product can be gathered.
What are the disadvantages of interviews?
- Can result in interviewer bias
- Time-consuming and often expensive.
Define a sample in market research.
A sample is a group of people selected from the target market to respond to a market research exercise.
Define random sample.
A random sample is when people are selected at random as a source of information for market research.
Define quota sample.
A quota sample is when people are selected based on certain characteristics such as age or gender.
Define secondary research.
Secondary research uses information that has already been collected and is available for use by others.
What are the advantages of secondary research?
- Cheaper than primary research
- Helps determine market size
- Public government information increases authenticity
- Quicker to obtain than primary research.
What are the disadvantages of secondary research?
- Data may be outdated
- Collected for general use, not specific to one business.
What are internal sources of secondary data?
Internal sources are data available within the organization, such as:
* Sales department records
* Finance department data
* Customer service feedback.
