Market Research Methods

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Questions and Answers

What is a major limitation of secondary research?

It is expensive

The data may be outdated or incorrect (correct)

It provides specific results for a certain product or service

It is only used for primary research

What is a key factor in ensuring the accuracy of research data?

The age of the data

The type of research method used

How carefully the sample was drawn up (correct)

The size of the sample

What is a benefit of using secondary research?

It provides specific results for a certain product or service

It is cheaper than primary research (correct)

It is only used for market research

It is more expensive than primary research

What is the marketing mix comprised of?

4 Ps: Product, Price, Place, Promotion Signup and view all the answers

What is a key consideration when collecting primary research data?

Ensuring the sample is representative of the population Signup and view all the answers

What is a potential issue with using secondary research?

The data may be biased Signup and view all the answers

What is the primary benefit of market segmentation in terms of marketing costs?

More efficient marketing efforts, resulting in cost savings Signup and view all the answers

What type of business is most likely to conduct market research before developing a product?

Market-oriented business Signup and view all the answers

Which of the following is an example of primary research?

Conducting a survey to gather original data Signup and view all the answers

What is a limitation of primary research?

It is biased towards the opinions of a small group of people Signup and view all the answers

What is the primary purpose of market research?

To understand the needs and preferences of customers Signup and view all the answers

What is a benefit of conducting market research?

It increases the likelihood of a product being successful Signup and view all the answers

What type of research methodology involves gathering original data from people representing the target market?

Focus Groups Signup and view all the answers

What is a potential limitation of using questionnaires in market research?

The interviewer may influence the respondent's answer Signup and view all the answers

What is an internal source of secondary research data?

Customer records Signup and view all the answers

What is a benefit of conducting observations in market research?

It allows for data to be collected without customer awareness Signup and view all the answers

What is a limitation of using quota sampling in market research?

The sample may not be representative of the target market Signup and view all the answers

What is an external source of secondary research data?

Government statistics Signup and view all the answers

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.