5 - Marketing

• What is market research?

  process of gathering, analysing and processing data relevant to marketing decisions
• Mass market is a large market of customers which is undifferentiated and sells product to suit a large sum of people
• Niche market is a smaller part of a large market with products tailored to specific market
• Market segmentation is dividing up a larger market into smaller segments based on different characteristics such as age, gender, income etc.
• Focus groups are where consumers are brought together by businesses to discuss their opinions to products before launch
• Primary research involves collecting primary data, information that does not exist
• Examples of primary research include questionaries, surveys and observation
• Advantages of using primary research

  up-to-date

  specific to a business' needs

  provides exact answers
• Disadvantages of primary research

  can be expensive to collect

  can be time-consuming to collect

  can have problems of bias
• Secondary research uses existing sources of information rather than gathering new data
• Examples of secondary research include newspapers, trade journals and census data
• Advantages of secondary research

  inexpensive

  quick to obtain

  cost-effective analysis of several data sources
• What is one benefit of in-person surveys?

  The interviewer can help people to understand the questions.
• What is a benefit of telephone interviews?

  They allow a wide geographical area to be covered.
• What is a problem associated with telephone interviews?

  They can be expensive to carry out.
• What is a disadvantage of telephone interviews regarding response rates?

  The response rate is low as people do not like being disturbed at home.
• What is a benefit of questionnaires once drafted?

  They can be sent to multiple people.
• What must be considered when designing questionnaires?

  Questions must be short, so detailed questions are difficult to ask.
• What is a problem with postal surveys?

  The response rate is low as people do not return questionnaires.
• What is a problem associated with internet surveys?

  The response rate is low.
• What is a benefit of internet surveys?

  They are cheap to carry out.
• What is a key characteristic of focus groups?

  They are small groups of people selected to give their views on a particular business issue.
• What is one benefit of focus groups?


  They give an opportunity to discuss a range of issues.
• What is a problem with the results from focus groups?

  Results tend to produce opinions, but the small number of people involved makes it difficult to extend their views to the market.
• What is a disadvantage of focus groups regarding cost?

  They may be expensive to set up in relation to the amount of data obtained.
• What is the main benefit of primary research for a business?

  Information specific to the business or the market is gathered.
• Why is primary research considered to provide up-to-date information?

  Because it is gathered directly from the market or business context.
• What makes data from primary research more reliable?

  It is gathered by specialist research businesses.
• What is a key benefit of secondary research?

  The data can be gathered quickly from readily available information.
• How is secondary research cost-effective for businesses?

  It is cheap to gather with employees carrying out the research as part of their daily jobs.
• What is a major problem associated with field research?

  Field research can be expensive to carry out particularly for large-scale surveys.
• Why can field research be time-consuming?

  Because it often involves collecting data from a large number of participants.
• What is a limitation of using a sample of consumers in research?

  The results may not reflect the full market as people do not have the time or inclination to complete surveys.
• What is a potential issue with secondary data for a business?

  The data may not be exactly what the business wants as it may be too general and not related to the business.
• How can outdated secondary information affect a business?

  It may not indicate current market demand and trends.
• How does the size of a business influence its market research approach?

  • Large businesses can afford extensive market research and specialist companies.
  • Small businesses may rely on in-shop surveys and local research.
• How do large businesses utilize secondary research?

  They can afford to employ workers to monitor secondary information about the market.
• What type of secondary research do small businesses typically rely on?

  They will use desk research gained from the media and the internet.
• Multidistribution channels allow customers a choice of ways to buy goods
• Multi-distribution channels allow customers a choice of ways to buy...?

  in store - view the products

  website - detailed description and images, can be delivered

  help with comparison websites - comparing prices and products

  telephone sales - order products they have seen online or in store

  printed catalogue - comparing products before ordering online