Marketing Methods Q&A

Part A

1.    Explain marketing research process.

·         The Marketing research process is a set of steps defines the tasks to be accomplished in conducting a marketing research study. 

-       Define the problem                                                             -    Data collection

-     Development of an approach to the problem -    Data analysis

-       Research design formula                                   -    Report preparation

       

2.    List 3 secondary data sources for both internal & external.

Internal                                         External        

-          Sales figures                                                      -      Competitor information

-          Customer Reports                                 -     Government publications

-          Company Reports                                 -     Trade association data



3.    List 3 primary field data sources.

·         Experiments

·         Observation

·         Surveys

4.    Choose one of the primary field data sources.



a.    Explain it in more details (3 points)

Observation:

·         When researchers use their senses to examine things, and collect information without questions being asked.

·         Useful to find what products interests people, what products they might buy, how they buy, and where they buy them from.

·         Carried out in laboratories or real life situations.



b.    Explain the advantages & disadvantages (3 points each)

Advantages                                                      Disadvantages

-          What people do rather than say                          -    Time consuming and costly

-          Not relying on memory                                       -    Partial information is given

-          Carried out without customers’ knowledge          -    “Why question” is not answered

PART B



1.    What is a micro-environment and list 5 elements

·         Small forces within a company that affect its ability to serve customers.

-          Customers                            -       Local government

-          Employees                           -       Competitors

-          Suppliers



2.    List and describe the four categories of competitor environment.

Direct Competitors:   A situation in which two or more businesses offer products or services that are              

                                    essentially the same.

Close Competitors:    A term that describes a company that produces a identical good or service that is            

                                     offered for sale within the same market as other companies.

Substitutes:                  Products that are different but might be bought instead.

Indirect Competition: Conflict between vendors whose products or services are not the same but that     

                                      could satisfy the same consumer need.

3.    Define and provide an example from YOUR experiences

·         Perfect competition

·         Selling the same kind of goods to a customer who buy on price alone.

-          Example: I have seen many agricultural markets selling the same fruits and vegetables.

·         Monopolistic competition

·         When producers sell products that are differentiated from one another.

-          Example: Restaurant businesses.

·         Oligopoly

·         A state of limited competition, in which a market is shared by a small number of producers or sellers.

-          Example: Cable TV services.

·         Monopoly

·   A single supplier

-          Example: United States Postal Service (USPS).


4.    List and describe Porter’s five forces.

·         Intensity of existing competition

o    Firms within an industry put pressure on one another and limit each other's profit potential.

·         Barrier to the entry

o   How simple it is for newcomers to enter the market

·         Threat of substitute

o   Occurs when companies within one industry are forced to compete with industries producing substitute products or services.

·         Bargaining power of customers

o    Strong customers will bring down prices.

·         Bargaining power of suppliers

o   Strong suppliers will bring up prices.



5.    List the 5 main market environment types.

·         Consumer or B2C markets

·         Business or B2B markets

·         Export markets

·         Government markets

·         Reseller Markets

6.    What is a macro-environment and list 5 elements

·          Is the condition that exists in the economy as a whole, rather than in a particular sector or region

-          Macro-economic environment       -    Demographic environment

-          Political environment                    -    Technical environment

-          Social and cultural environment

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