Which of the following is not a reason businesses conduct marketing research?
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Customer segmentation studies aim to divide markets or customers into smaller groups or personas with similar characteristics to enable targeted marketing. By understanding how people in each category behave, you can understand how each influences revenue. Show
When to use itAs soon as you’re ready to start giving customers individualized experiences. Not every customer in your target market is the same. The more you understand each specific persona, the easier it is to focus on delivering personalized marketing, build loyal relations, price products effectively, and forecast how new products and services will perform in each segment. How it’s doneMarket researchers use four characteristics to segment customers. • Demographics. Demographic information such as age, gender, family status, education, household income, occupation and so on. • Geography. Where people live, from cities and countries to whether they are city dwellers or suburbanites. • Psychographics. Socioeconomic status, class, lifestyle, personality traits, generation, interests, hobbies, etc. • Behavior. Brand affinity, consumption and shopping habits, spending, etc. A researcher will identify your current customers and collect data about them through various market research methods, such as surveys, database research, website analytics, interviews, and focus groups. The aim is to gather as much information as possible. ��������� 2.�� Discussions among camera retailers to identify the major cause of poor sales of a recently introduced new-model digital camera is an example of a. secondary data collection. c. conclusive research. b. exploratory research. d. experimentation. ��������� 3.�� Information that has not been gathered for the immediate study at hand but for some other purpose is known as a. marketing intelligence data. c. secondary data. b. primary data. d. MIS data. ��������� 4.�� Which of the following are examples of internal secondary data? a. Surveys conducted specifically for the problem/opportunity at hand b. Company-based budgets and prior research reports c. Single source data conducted by Information Resources Inc. d. Survey of Current Business and Census of Population (published by governmental agencies) ��������� 5.�� Information that is gathered to address a specific issue or problem at hand is known as a. marketing intelligence data. c. secondary data. b. primary data. d. MIS data. ��������� 6.�� A firm needs to conduct primary data collection when a. secondary data sources are dated. b. the firm's research budget is limited. c. the firm must conduct the research project immediately. d. the firm lacks the ability to properly evaluate a research study. ��������� 7.�� According to the marketing vice-president of a regional soda manufacturer, "we need to better understand the reason(s) for the comparatively slow growth of our bottled water brand relative to our major competitors." This executive should focus on which stage of the marketing research process? a. Generation of primary data c. Issue (problem) definition b. Examination of secondary data d. Data analysis ��������� 8.�� Which of these is an example of a precise research issue (problem)? a. Why are sales rising at a greater rate than competitors'? b. Is the sales force effective? c. What percent of the target market can correctly associate the product as being marketed by Johnson & Johnson? d. Why have profits not met expectations? ��������� 9.�� Which form of information collection generally accompanies the undertaking of exploratory research? a. Secondary data analysis c. Observation b. Experimentation d. Personal interview ��������� 10. A retailer seeks to determine the percent of its credit card users that live within 10 miles of its main store. Which internal secondary source should it use? Whether you want to found a company or successfully lead an innovative project, market exploration is an essential step. The basic aim of this study is to quickly determine the information needed to identify your business opportunities to rapidly launch your product onto the market. Not carrying out a market research study is a little like:
There are many reasons to carry out an exploratory market research : Checking the existence of the marketI.e. discovering if there are people ready to pay for your product or service. This is the best way to reduce any doubts you may have. Identifying clientsChecking that your target clients really exist, exist in sufficient numbers, and are accessible and solvent. Use your study to collect expressions of interest, as this is an excellent opportunity to obtain qualified leads. Determining the fields of application or potential applicationsKnowing your field of application is good, but being able to identify others is even better. This solution can open many potential opportunities that you may never have thought of. Determining a priceThis approach consists of checking the prices used by your competitors, and looking at your own profitability targets. To do this, it can be helpful to carry out field surveys on the price, and to identify the value perceived by your end customers. Remember, the right price is the one that your customers are willing to pay. Limiting risksDid you know that the most common cause of failure of a company or project is a poorly evaluated marketing and sales strategy? This is why they are essential to the success of your project! A market research will enable you to easily determine the most suitable markets and those you should completely avoid. Remember: “A good study always costs less than a bad decision!” Which brings us to our final point… Making the right decisionIt’s good to make a decision, but always better to make the right one, which is the purpose of this market research. You may have imagined, or even designed, your innovation, and whilst you may see it clearly in your head, it might not be viable or suitable. Launch without a definite idea of your potential market and you may quickly end in failure, whether you’re a young startup or a large company. ConclusionThe tense economic conditions of recent times prove once again that uncertainty cannot have a place in our activities. If you think that these exploratory studies can be complex, difficult, and take time to conduct, something that only “marketing professionals” can take on, it’s time to shake off that notion! New marketing techniques are constantly being developed, such as the automated market exploration. These new techniques enable any type of project to be equipped with a powerful tool that adds to the speed and effectiveness of your decisions. What are the 4 reasons for market research?5 Reasons Why Market Research Is Key. Make Better Informed Business Decisions. Making difficult business decisions is inevitable, but having data to back up your decisions can make things easier. ... . Know Who You're Talking To. ... . Find Opportunities for Growth. ... . Stay Up to Date on the Latest Trends. ... . Know Where to Advertise.. Which of the following is a reason why businesses conduct market research?Market research helps you identify areas for possible business expansion. Given that it offers the opportunity to test markets to determine if there is room for a new product or service. You can also conduct market research to find the best location to open a new store.
Why would a business not use marketing research?"It's too costly." The argument here is businesses do not have the additional resources or budget to allocate to a marketing research project. Marketing dollars are difficult to come by and dollars for marketing research are even more difficult to come by.
When should you not conduct market research?Like the problem of having research being more costly than beneficial, if you do not have a marketing budget readily available for your team, then a new project might need to be held off. Starting a market research study when you cannot afford it will lead to either an uncompleted project or insufficient data.
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