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Questions and Answers
What is a major limitation of secondary research?
What is a key factor in ensuring the accuracy of research data?
What is a benefit of using secondary research?
What is the marketing mix comprised of?
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What is a key consideration when collecting primary research data?
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What is a potential issue with using secondary research?
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What is the primary benefit of market segmentation in terms of marketing costs?
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What type of business is most likely to conduct market research before developing a product?
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Which of the following is an example of primary research?
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What is a limitation of primary research?
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What is the primary purpose of market research?
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What is a benefit of conducting market research?
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What type of research methodology involves gathering original data from people representing the target market?
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What is a potential limitation of using questionnaires in market research?
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What is an internal source of secondary research data?
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What is a benefit of conducting observations in market research?
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What is a limitation of using quota sampling in market research?
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What is an external source of secondary research data?
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Study Notes
Market Research Methods
- Quota Sampling selects participants based on specific characteristics like age and income.
- Focus Groups consist of target market representatives evaluating products/services, sharing likes and dislikes.
- Observations involve analyzing consumer habits, including which television channels are watched and product sales in stores.
Benefits and Limitations
- Questionnaires provide detailed customer opinions but may lead to biased responses or irrelevant data.
- While customer feedback can be useful, gathering it through questionnaires can be time-consuming and costly.
- Secondary Research refers to previously collected data, accessible via internal (firm records) or external sources (government stats, newspapers, internet).
- Secondary Research is usually cheaper but may yield broad or outdated information not specific to the business's needs.
Accuracy of Research Data
- Research accuracy relies on sample selection, questionnaire construction, sample size, and potential biases present in secondary data.
- Age of data can affect its reliability; older data may be less accurate.
Marketing Mix
- The Marketing Mix encompasses all activities related to marketing a product/service, summarized by the 4 Ps: Product, Price, Place, Promotion.
- Always consider these four elements in marketing discussions and strategies.
Product Considerations
- Choosing the right product for the market is critical; niche markets might have limited sales but can offer advantages over mass-market products.
- Failure in specialized markets is common if product demand is low.
Market Segmentation
- Market segments consist of consumers with similar traits, allowing businesses to target specific groups effectively.
- Segmentation criteria include age, socio-economic status, location, gender, and lifestyle factors.
- Benefits of market segmentation include efficient marketing efforts, cost savings, and the opportunity to fulfill unmet consumer needs.
Types of Businesses
- Product-oriented businesses focus primarily on product development.
- Market-oriented businesses prioritize market research to understand consumer needs before creating products.
Market Research Importance
- Essential for assessing potential sales volume and profitability of products.
- Two main types of Market Research: Primary (field research) and Secondary (desk research).
Primary Research Methods
- Encompasses original data collection through direct customer engagement, including questionnaires/surveys and interviews.
- Sampling involves selecting a group of people to participate in the research, usually chosen randomly.
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Description
Test your knowledge of market research methods, including quota sampling, focus groups, and observations. Learn about the benefits and limitations of each method and how they are used to gather detailed information about target markets.
