1. Marketing and Market research

• Define the term marketing

  Marketing is the term used to describe all the different activities a firm undertakes when it attempts to identify and meet the wants and needs of its customers. It involves putting the right product in the right place at the right time at the right price.
•   Give three reasons for market research

  The first reason is the information ensures that they are providing the products which consumers are most likely to buy

  The second reason is it shows the area in which sales are likely to be more successful.

  The last reason is it can prevent the business from expensive mistakes.
• Give a definition of secondary/desk research

  This research is done by using published statistics, data and other information which has already been collected previously. A business could also use information held internally.
• Give two advantages of secondary research

  The first advantage is information is cheap to obtain.

  The second advantage is the information is available immediately
• Give two disadvantages of secondary research

  The first disadvantage is information may be out of date

  The second disadvantage is the information is available to all other businesses in the market
• Define primary/field research

   This is the collection of original information by the business and is carried out by making direct contact with consumers and members of the public who may become consumers
• Give two advantages of primary/field research

  The first advantage is the business can design the research and the best way to discover the particular information it needs

  The second advantage is the business can be sure the information gathered is up to date
• Give two disadvantages of primary/field research

  The first disadvantage is designing the research, gathering the information and analyzing it can be slow. This can be a problem in fast-paced industries.

  The second disadvantage it is specialised work so businesses often employ specialist researchers and this can be expensive.
• Define the primary research method questionnaire and interviews

  Questionnaires are a set of printed informal questions with a choice of answers.

  Interviews are a formal meeting at which someone is asked questions and have the opportunity to respond in detail.
• Give two advantages of questionnaires and interviews

  The first advantage is it's designed to find out exactly the information required.

  The second advantage is the information is taken directly from customers or potential customers.
• Give two disadvantages of questionnaires and interviews

  The first disadvantage is some people resent being stopped and questioned.

  The second disadvantage is it's a slow method which can be expensive.
• Define the primary research method observation

  This involves watching or observing the reactions of people to products. For example people may be observed making their selection of goods in the supermarket.
• Give two advantages of observation

  The first advantage as it is not costly for the business.

  The second advantage is consumers need not be aware of it happening therefore are more likely to act normal.
• Give two disadvantages of observation

  The first disadvantage is it shows how they behave but not why

  The second disadvantage is it raises moral and ethical questions as they are being watched without their knowledge and how this information is used
• Define the primary research method consumer panels

  A consumer panel is a group of individuals who are asked to share their thoughts, attitudes and feelings on a particular product or concept.

  Consumer panels normally contain between six to ten people who used on an ongoing basis and members are called upon on a frequent basis to analyze a range of products and concepts and provide data for the firm.
• Give two advantages of consumer panels

  The first advantage is consumer panels are particularly useful in the collection of very detailed qualitative data.

  The second advantage is as consumer panels are used on an ongoing basis respondents gain experience and confidence and therefore supply more useful data.
• Give two disadvantages of consumer panels

  The first disadvantage is as consumer panels are conducted on the small scale the results may not be truly representative.

  The second disadvantage is because of the qualitative nature of the data the results can be very difficult to analyze and therefore require the analytical skills of an experienced researcher this makes this an expensive method of research.
• Define the primary research method testing

  Testing involved members of the public being given samples of the product and being asked for their opinion on it. This is used in supermarkets when a new variety of food is being launched.
• Give two advantages of testing

  The first advantage is the tests are straightforward to organize and you do not have to pay the customers.

  The second advantage is the consumers first hand opinions are given.
• Give two disadvantages of testing

  First disadvantage is it's not suitable for all products for example a vehicle or smartphone could be too costly for the business.

  The second disadvantage is it may not test a cross-section of the public only those enter or already customers will be tested.
• Define the term quantitative research

  Quantitative research involves a selection of numerical data. This can be analyzed statistically to identify trends.

  It is a structured form of market research where the respondent will be asked to choose their answer from a selection given. Examples include questionnaires or governments statistics
• Define the term qualitative research

  Qualitative research is used to determine how people feel, a series of questions is used as a discussion guide were respondents give high quality answers.

  Qualitative research cannot be analyzed statistically and usually a much smaller sample would be asked as it can take a long time to analyze. Eg an interview or a consumer panel.
• Give a definition of sampling

  Sampling is part of primary research. Instead of asking opinions of large numbers of people which can be costly to a business they will select the small portion of the population, a sample.
• Give a definition of random sampling

  Random sampling is where people are randomly selected and asked for their opinions on a product. There is a possibility that some of the people questioned may not be familiar with the product, for this reason random sampling is of most use with products which nearly everyone uses.
• Give two advantages of random sampling

  Onr advantage of random sampling is everyone has a chance of being chosen

  The second advantage is the random samples are easily organized and are cheap
• Give two disadvantages of random sampling

  The first disadvantage of random sampling is the results are not very accurate unless a very large sample is used.

  The second disadvantage is it does not necessarily reach the most appropriate people therefore reducing the relevance of the responses received by the business.
• Give a definition of quota sampling

  Quota sampling is where interviews are held with a set number of people who fall into pre-determined categories and reflect the type of product. It is important that the sample reflects the composition of the area.
• Give two advantages of quota sampling

  One advantage is the results are more accurate than random sampling.

  Another advantage is it is more likely to reach the appropriate people.
• Give two disadvantages of quota sampling

  One disadvantage is the composition of people in the area must be known in order for the correct proportions to be interviewed.

  Another disadvantage is the method is unsuitable for some products.