Market Research Lecture 1: Decision Problems (3)and Research Questions

Flashcards covering the key concepts discussed in the Market Research Lecture 1, including decision problems, market research triggers, SWOT analysis, and data collection.

What is a decision problem?

A situation where management has to decide on a course of action, such as changing prices or adding a new product.

What triggers market research (MR)?

It's triggered by a decision problem and involves gathering information to inform a decision (e.g., on pricing).

What is a research question/problem?

The question or problem that the research intends to answer, such as whether to raise or lower prices.

What is 'market'?

What's happening in the marketplace for a product.

What is 'marketing'?

The act of taking action based on market information.

What is meant by the term 'timeliness' in the context of market research?

Waiting too long to conduct market research after seeing warning signs (e.g., 6-12 months before potential insolvency).

What should be considered even if a company does do market research?

Even with good market research, external factors (e.g., competitors) can lead to failure.

What does 'SWOT' stand for in marketing?

Strengths, Weaknesses, Opportunities, and Threats; used to analyze a company's position in the market.

What can occur if there is not good market research performed?

A good product that fails due to being targeted at the wrong audience/market.

Give an example of an opportunity.

Michelle's Patisserie going out of business creating the chance to pickup their previous customers.

Give an example of a potential threat.

Increasing consumer demand for vegan and vegetarian options.

What is an important factor to consider before conducting market research?

The benefit of conducting market research should exceed the cost.

What type of data should you collect when conducting market research?

Only collect data that is necessary to solve the decision problem.

What is the aim of market research?

Identifying the key motivator, which may be emotional, behind consumer purchases.

When is market research considered?

New product development or addressing a sudden drop in sales.

What does good market research allow an organization to do?

Allows organizations to estimate and anticipate changes before they happen, like the impact of first-time homebuyer schemes.

Give an example of a question that a sanctioned agency may have

How does a government home buyer incentive affect sales of homes?

Give an example of how a decision problem can be affected

How the stamp duty waiver (first time home buyer incentive) affects negotiations with real estate agents.

What should marketing materials be consistent with?

Marketing materials should be consistent with the target audience identified through market research.

How is step 5 of the marketing research process presented?

Graphs, bar graphs, and pie charts help visualize data.

Who is the long and short of market research written for?

For management or decision-makers, in such a way that it informs their decision.

What is secondary data?

Data gathered by someone else used to inform a decision problem.

What are the advantages of secondary data?

It's cheap and readily available.

What are the disadvantages of secondary data?

Uncertainty about the data's veracity and differences between markets (e.g., Victoria vs. New South Wales).

What does good market research account for?

Accounts for all reasons, like interest rates, that cause sales uptakes, backing out other factors to isolate the impact of the specific element being studied (e.g., stamp duty waivers).