market research

• What is the main priority for businesses regarding the market place?

  Having an understanding of the market place
• Why do businesses prioritize understanding the market place?

  To reduce the expense of launching new products and maintain market share
• How much does Proctor and Gamble spend annually on worldwide marketing?

  Over £5 billion
• What does market research help businesses avoid?

  Taking a leap in the dark when designing new products or entering new markets
• What are the objectives of market research?

  • Discover customer needs and motivations
  • Understand market structure and segmentation
  • Assess market demand and future sales predictions
  • Determine product life cycle stage
  • Test consumer response to new products
  • Evaluate effectiveness of previous promotions
  • Monitor competition and their activities
• What is market research?

  The process of collecting information and data about customers, the marketplace, and competitors
• What type of information does market research aim to gather?

  Evidence to enable marketing and production decisions to be made scientifically
• How does understanding customer needs benefit a business?

  It helps businesses tailor products and marketing strategies to meet customer demands
• What does market segmentation refer to?

  The division of the market based on geographical, socioeconomic, or other differences
• What is 'extrapolation of trends' in market research?

  Discovering whether market demand is increasing to make future sales predictions
• Why is it important to know the stage of a product in its life cycle?

  To determine if it is worth investing in the product and consider extension strategies
• How can businesses test consumer response to new products?

  By conducting market research to gather consumer reactions
• What is the purpose of assessing previous promotion campaigns?

  To determine if the intended aims were achieved and if the target market is aware of the product
• What is primary research also known as?

  Field research
• What is the main characteristic of primary research?

  It gathers first-hand information that is directly relevant to the business
• What are the methods of primary research?

  • Questionnaires
  • Focus groups
  • Consumer panels
  • Test marketing
• What is a questionnaire in market research?

  A tool designed to gain specific information based on a series of questions
• How are focus groups used in market research?

  They meet regularly to discuss themes set by a market researcher
• What is the purpose of consumer panels?

  To gain opinions on different aspects of a product from consumers
• What is test marketing?

  A trial release of a product in a restricted area to gather customer responses
• What is secondary research also known as?

  Desk research
• What is the main characteristic of secondary research?

  It involves the use of previously collected information
• What are the methods of secondary research?

  • Official publications
  • Industry magazines
  • Yellow Pages
  • Internal information
  • Online desk research
• What type of publications are commonly used in secondary research?

  Census reports and social trends surveys
• How can internal information be useful for market research?

  It helps build detailed profiles of customers and their spending habits
• What is the advantage of online desk research?

  It offers a huge range of potential information that is easily accessible
• Who typically undertakes field research?

  Market research companies
• What is the difference between quantitative and qualitative research?

  Quantitative research gathers information based on facts, while qualitative research gathers opinions and views
• What are the characteristics of quantitative research?

  • Gathers information based on facts
  • Uses closed questions
  • Leads to objective conclusions
  • Findings must be in mathematical form
• What is a limitation of quantitative research?

  It often fails to encourage continuous investigation due to closed questions
• What are the characteristics of qualitative research?


  • Gathers opinions and views
  • Uses open questioning methods
  • Allows interaction with research subjects
  • Helps understand consumer attitudes and motivations
• What is a challenge in interpreting qualitative research data?


  It can be quite difficult to interpret the data collected
• What is bias in market research?


  When a sample is weighted towards one side, affecting the validity of the data
• What are the sampling methods used to avoid bias?

  • Quota sampling
  • Random sampling
• What is quota sampling?

  A method where the population is segmented into groups with specific characteristics
• What is random sampling?

  A method where every member of the population has an equal chance of being interviewed
• Why is achieving randomness in sampling challenging?

  It creates expensive fieldwork costs and requires multiple attempts to contact interviewees
• How does quota sampling affect the statistical representation of results?

  Results cannot be regarded as statistically representative of the population