Marketing involves understanding customer needs and coordinating a suitable offer and marketing mix. Research provides evidence about customers, competitors and demand, but a decision still needs interpretation and an assessment of uncertainty.
Segmentation groups relevant needs or characteristics; targeting selects groups to serve; product, price, place and promotion are then shaped for the offer. These connected decisions are not the same as only advertising.
Market research
Primary research collects new data for the current purpose, directly or through a commissioned collector. Surveys, interviews, focus groups, observation and limited market trials can be used. Existing published statistics, reports or reused data are secondary for the business.
A method’s suitability depends on the question, cost, time, access and evidence quality. Primary is not automatically better, and secondary is not always free or current. Check original definitions, date, population and possible bias.
Source and type are separate choices
Types of data
Quantitative data measure numerical quantities, such as purchase counts or rating-scale scores. Qualitative data describe meanings, experiences or reasons in non-numerical form. A survey or interview can collect both types.
An opinion expressed as a 1–5 rating is a numerical measure, while the person’s written explanation is qualitative. Analysis may code themes numerically later; do not assume every number is a meaningful quantity or every opinion is automatically qualitative.
Sampling
A sample is a subset of a defined population and is not necessarily representative merely because it is called a sample. Simple random sampling gives each member of the stated frame equal selection chance. Frame gaps and non-response can still bias results.
Quota sampling fills stated group totals, often with non-random choices within groups; stratified random sampling selects randomly within defined strata. Size can improve precision under a suitable design but does not repair poor coverage, self-selection or leading questions.
Sampling methods differ
Market segmentation
Segmentation can use relevant demographic, geographic, lifestyle or behavioural features. Age, income or location can be useful where evidence connects them to customer needs; individuals can belong to several groups and differ within a group.
A customer profile is a working summary, not a stereotype. For example, investigate people needing evening deliveries, then test suitable hours, price and communication. Segmentation may reduce wasted effort but collecting data and tailoring offers can also add costs.
Segments need a reason to matter
Market size and share
Define market size by the relevant sales value or volume and period. Market share (%) = firm sales ÷ total defined-market sales × 100 using the same basis. Market growth (%) = (new market sales − original market sales) ÷ original market sales × 100, where the original value is nonzero.
Fictional comparison: firm sales £20m to £25m rise 25%; market sales £100m to £150m rise 50%. Firm value share moves from 20% to about 16.67%, despite its sales growth. This does not measure profit.
Firm growth can lag behind its market
Niche and mass markets
A niche focuses on a specialised, relatively narrow segment. Specialisation can help meet particular needs, but competition, limited demand or high costs may remain. Premium prices and profit are not guaranteed.
Mass-market activity addresses a broad customer base, potentially supporting volume and scale benefits while facing competition and resource needs. It does not automatically mean one price level or uniform customer behaviour. Compare the actual offer, demand and costs.
Compare market approaches
Use of data
Use research to test assumptions and interpret patterns, not guarantee sales. In the fictional opt-in survey of existing followers, 80 of 100 respondents express interest: 80% of respondents, not proven 80% of the whole market. Volunteers may differ from those not reached or not responding.
Use clear, neutral questions with relevant response options and a defined timeframe. Stated intention may not become a purchase. Compare different evidence where definitions match, and explain limits such as date, sample design, wording or test-market differences.
Do not overclaim from an opt-in survey
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Acollecting information about customers and the market
Ba type of advertising
Ca loan
Da tax
2.What is primary research?
Easy
Aexisting data
Ba tax return
Ca bank statement
Dnew data collected for the specific research purpose
3.What is secondary research?
Easy
Atesting a product
Binterviewing
Cusing data that already exists
Dcollecting new data
4.What is quantitative data?
Easy
Afeelings
Bnumerical data
Copinions
Dstories
5.What is qualitative data?
Easy
Anon-numerical descriptions, experiences or explanations
Bnumbers
Cpercentages
Dstatistics
6.What is a focus group?
Easy
Aa large survey
Ba shop
Ca bank
Da small group discussing a product
7.What is test marketing?
Easy
Aadvertising only
Bdelivering free
Ctrialling an offer in a limited market or channel before wider rollout
Dselling worldwide
8.What is a sample?
Easy
Aa supplier
Ba subset of the population being studied
Cthe whole market
Da competitor
もっと問題
9.What defines simple random sampling from a stated frame?
Easy
Aeach member of that frame has an equal chance of selection
Bselecting friends only
Cselecting by quota
Dselecting by choice
10.What is quota sampling?
Easy
Arandom selection
Bselecting everyone
Cselecting no one
Dselecting set numbers from groups
11.Which approach generally strengthens the quality of research evidence?
Easy
AOnly asking the owner’s friends
BAssuming every response guarantees a purchase
CSuitable sampling, relevant coverage and neutral questions
DOnly increasing the size of a biased sample
12.Which segment variable is age?
Easy
Aeconomic only
Bdemographic
Cgeographic only
Dbehavioural only
13.Which segmentation uses location?
Easy
Ageographic
Bage only
Cincome only
Dgender only
14.What is a niche market?
Easy
Aa huge market
Bno market
Ca global market
Da small, specialised segment
15.What is a mass market?
Easy
Aa specialised market
Bno customers
Ca large market with many customers
Da tiny market
16.What is market share?
Medium
Aits customers
Ba firm's percentage of total market sales
Cits profit
Dits costs
17.What is market growth?
Medium
Athe rate at which the market is expanding
Ba firm's profit
Ca firm's wages
Da tax
18.Which is a potential advantage of serving a niche?
Medium
AGuaranteed absence of competitors
BGuaranteed premium prices
CGuaranteed high profit
DSpecialising in the needs of a particular customer group
19.What is an advantage of a mass market?
Medium
Ano competition
Bno customers
Cpotential access to high sales volume
Dvery high prices
20.What is a disadvantage of surveys?
Medium
Athey remove customers
Bpeople may not answer honestly
Cthey give no data
Dthey are free
21.What is an advantage of secondary research?
Medium
Aexisting information may save collection time or cost
Bit is always perfectly relevant
Cit is firsthand
Dit never ages
22.What is a disadvantage of secondary research?
Medium
Ait is firsthand
Bit is exact
Cit is free of bias always
Dit may be out of date or not specific
23.What is customer profile?
Medium
Aa price list
Ba wage list
Ca description of typical customers
Da bank account
24.Why segment a market?
Medium
Ato reduce sales
Bto target customers with suitable products and promotion
Cto avoid customers
Dto raise costs
25.Why might a business use both primary and secondary research?
Medium
Ato combine specific and background information
Bto avoid data
Cto double costs only
Dto avoid customers
26.Why is a representative sample important?
Medium
Ait shortens the survey
Bit removes data
Cit removes bias entirely
Dit provides a better basis for estimating the target population, with uncertainty
27.Why does market research reduce risk?
Medium
Ait guarantees sales
Bit raises costs
Cit tests assumptions before committing substantial resources
Dit removes competitors
28.In the same defined market and year, a firm has £5 million sales revenue and total market revenue is £50 million. What is its share by value?
Easy
A1%
B10%
C5%
D50%
29.Primary research is collected firsthand.
Easy
True or false?
30.A numerical 1–5 customer-satisfaction score is qualitative data simply because it records an opinion.
Easy
True or false?
31.Market segmentation divides customers into groups.
Easy
True or false?
32.A niche is a specialised, relatively narrow segment of a wider market.
Easy
True or false?
33.A small biased sample is the most reliable.
Medium
True or false?
34.Which are primary methods when newly conducted for the business’s current study? Select all that apply.
Medium
Asurveys
Binterviews
Cfocus groups
Dobservation
Egovernment statistics
35.Which are ways to segment a market?
Medium
Aage
Bincome
Clocation
Dlifestyle
Erandom guesses
36.Explain how segmentation helps a business.
Medium
37.A fictional business posts an opt-in survey to its own social-media followers. Of 100 respondents, 80 say they are interested in a proposed product. What is justified?
Easy
A80% of these respondents expressed interest, but the whole market and actual purchases remain uncertain
BExactly 80% of the whole market will buy
CThe sample is representative because it has 100 responses
