Marketing

Question 1

Field research definitton?

Answer 1

This involves finding out information first hand (primary information) directly from the public/consumer.

Question 2

Field research advantages

Answer 2

Information is gathered specific to your purpose.

Question 3

Field research disadvantages

Answer 3

Information is up-to-date.

Question 4

Field research disadvantages

Answer 4

It is more expensive to gather compared to desk research.

Question 5

Field research disadvantages

Answer 5

It is more time consuming to gather compared to desk research.

Question 6

Field research disadvantages

Answer 6

People may not always give truthful answers in response to questions.

Question 7

Desk research advantages

Answer 7

This uses secondary data, which is information which is already available, either from inside the business or from outside the business.

Question 8

Desk research advantages

Answer 8

It is cheaper to access existing information rather than having to collect information from scratch.

Question 9

Desk research advantages

Answer 9

It is less time consuming to gather compared to field research.

Question 10

Desk research disadvantages

Answer 10

Information may be out of date.

Question 11

Desk research disadvantages

Answer 11

Information is available to our competitors.

Question 12

Questionnaire/Survey (field research)

Answer 12

These are forms which contain a series of questions. They are designed to obtain answers to questions which will help gain peoples’ opinions.

A sample of people will be questioned.

Examples include: face-to-face, by telephone or by post

Question 13

Consumer Panel or Focus Group (field research)

Answer 13

his is when a group of people are gathered together and are given a product to look at. This allows initial reactions to be recorded. Their opinions are obtained on the design of the product, colour, shape etc and what they like and dislike about the product.

Question 14

Test Marketing (field research)

Answer 14

The product is tried out on a small section of the market, in a limited area eg Aberdeen only.

Allows teething problems to be sorted out before the launch of the product nationally or worldwide

Question 15

Business growth

Answer 15

Sales are starting to increase.
The product is becoming known.
Advertising is continuing, although at a lower level than the initial launch.
The product is beginning to make a profit for the firm.

Question 16

Maturity/Saturation

Answer 16

Sales reach their peak and profit levels are at their highest.
The product is well established in the market.
Advertising is used as a reminder to consumers.
R & D costs are likely to have been paid off.
Competitors are introducing products to compete with ours.
Firms will try to stay at this point for as long as possible due to the high profits being made.
Firms will try to introduce new models or variations of the product, or revitalise their advertising campaign to promote sales.

Question 17

Decline

Answer 17

Sales and profits are falling.
The product becomes out-of-date.
There are more rival products on the market.

Question 18

End of Product Line

Answer 18

The product is taken out of production
The last products are sold at reduced prices to move them from the shelves
Profits are therefore further reduced