Marketing Research Methods & Environments

Part A:

1.     Define the marketing research process:

o   Identify the problem.

o   Determine the different research objectives.

o   Select data sources.

o   Select research methods.

o   Make a sample.

o   Set budgets and deadlines.

o   Begin your research.

o   Analysis and evaluation.

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

o   Internal: Sales figures, customer reports, Trend data.

o   External: Competitor information, government publications, Retail audits.

3.      List 3 primary field data sources:

o   Experiments.

o   Observations

o   Surveys.

4.     Choose one of the primary field data sources. (Observation)

a.      Explain it in more details (3 points)

-         Method of collecting data/ information done by watching people’s behaviours+ identifying their responses (no questions are asked.) Useful approach when determining where people shop, what they buy and what interests them.

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

-         STRENGTHS: You get information through people’s actions instead of their words, smaller chance of people being biased, method is done without the customer being aware (high chance of getting “truthful” responses).

-         WEAKNESS: It’s very expensive and it takes a lot of time, you aren’t able to find out the reason behind someone’s decision, it is easy to misunderstand a person’s response.

Part B:

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

-         Group that’s linked closest to the company and affects the direct decisions made.  5 elements: customers, intermediaries, suppliers, competitors, employees.

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

-         Direct Competitors: Direct rival of a company; makes somewhat identical product

-         Close Competitors: Companies that make similar products. 

-         Substitutes: Different products that might be purchased instead of the other.

-         Indirect Competition: All other companies; compete for customer’s money.

3.     Define and provide an example from YOUR experiences

a.      Perfect competition: Type of market where companies sell the same/similar kind of product; lots of buyers and sellers (ex. Agricultural market)

b.     Monopolistic competition: Lots of companies selling different goods that they have monopoly over. (ex. Colgate vs. Crest)

c.      Oligopoly: Market/industry that’s controlled by a small number of sellers. (ex. The automobile industry)

d.     Monopoly: A single seller selling one product; faces no competition. (ex. ICBC)

4.     List and describe Porter’s five forces:

-         “Intensity of competition in the industry”: Bigger # of competitors in industry= bigger threat to the company.

-         “Barrier/ lack of entry to new competitors”: How easy it is for new companies to enter the industry; easier+ cheaper it is, more the company is weakened.

-         “Threat of substitute products”: Competitor company substitutions can replace a company’s products+ services.

-         “Bargaining power of customers”: Customers ability to lower prices.

-         “Bargaining power of suppliers”: How easy it is for suppliers to increase the prices of goods+ services.

5.     List the 5 main market environment types:

-         Consumer (B2C) markets.

-         Business (B2B) markets.

-         Export markets.

-         Government markets- government is large buyer.

-         Reseller markets- buyer is intermediary and sells to someone else.

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

v Macro-Environment: general area surrounding the organization; affects business activity in the market + influences organization.

1)    Macro economic environment.

2)    Political environment.

3)    Social and cultural environment.

4)    Demographic environment.

5)    Technical environment.