Market Research
What is the main difference between primary and secondary research?
Primary research involves collecting new data directly from sources, while secondary research uses existing data that has already been collected by others.
What is a niche market?
A smaller, specific segment of a larger market with particular needs and preferences.
What does it mean if a business is product-oriented?
The business focuses on developing the product first and assumes there will be demand for it.
Name two methods of primary market research and two methods of secondary research.
Primary: surveys, focus groups. Secondary: internet reports, government statistics.
What is a mass market and what is an advantage?
Products tend to be more generic so that the needs of many different types of customers can be met. Large number of potential customers.
What is the focus of a market-oriented business? Give an example of how IKEA is market orientated.
Meeting the needs and wants of customers through market research.
Explain the difference between quantitative and qualitative research, and give one example of each.
Quantitative research involves numerical data (e.g., surveys with rating scales). Qualitative research explores opinions or feelings (e.g., interviews or focus groups).
State two advantages of operating in a niche market.
Less competition, highly targeted marketing.
Give one advantage of a product-oriented approach.
Can lead to innovation and high-quality products.
Give one advantage and one disadvantage of using surveys, and one advantage and one disadvantage of using focus groups for market research.
Surveys: Advantage – methodical and thorough process; Disadvantage – can be time consuming. Focus groups: Advantage – detailed insights; Disadvantage – small sample size, potential bias.
Explain, in context, why Colgate Total toothpaste is a mass market product.
Designed for general oral health and suitable for all adults.
Explain one disadvantage of being market-oriented in a competitive industry.
Can be costly and time-consuming to continually gather and respond to customer data.
Explain how social media can be used for both quantitative and qualitative market research. Include one benefit and one limitation.
Businesses can use polls for quantitative data and monitor comments or discussions for qualitative insights. Benefit – real-time feedback; Limitation – data may not represent target audience.
Compare and contrast the marketing strategies of niche and mass market businesses.
Niche markets use focused, personalised marketing, while mass markets use broad, general marketing strategies to reach a wide audience.
Explain why a business may need to change from a product orientation strategy to a market orientation strategy.
A business may need to change if sales are declining because products no longer meet customer needs or if competitors are gaining market share by offering more tailored solutions. Adopting a market orientation helps the business stay relevant by focusing on consumer preferences, increasing customer satisfaction, and improving long-term profitability.