Question 1: Define the term 'market research' and explain why it is important for a business planning to launch a new product.

Answer: Market research is the process of collecting and analysing information about customers, competitors, and the market environment. It helps businesses understand customer needs, identify opportunities, and reduce risks when launching new products.

Question 2: List two different methods a business might use to gather primary market research data. Provide one advantage for each method.

Answer: Surveys: Advantage - They provide direct feedback from customers. Focus groups: Advantage - They allow in-depth discussions to understand customer opinions.

Question 3: Identify two types of secondary market research sources and explain how each can help a business.

Answer: Government reports: They offer industry data and market trends. Industry publications: They provide insights into competitors and market developments.

Question 4: Describe a situation where a business might prefer to use secondary research over primary research.

Answer: When a business needs quick, cost-effective information about market trends without conducting new surveys or focus groups.

Question 5: Explain the difference between qualitative and quantitative market research. Give an example of each.

Answer: Qualitative research gathers non-numerical insights, such as opinions—example: focus group discussions. Quantitative research collects numerical data, such as survey results measuring customer preferences.

Question 6: A bakery wants to understand the types of bread most popular among local customers. Describe a suitable primary research method they could use.

Answer: They could conduct a survey asking customers about their preferred types of bread.

Question 7: Sketch a simple diagram illustrating the steps involved in conducting primary market research. Label each step clearly.

Answer: The diagram should include steps such as 'Define objectives', 'Design research method', 'Collect data', 'Analyze data', and 'Make decisions'.

Question 8: Discuss one potential limitation of using online surveys for market research.

Answer: Online surveys may not reach all customer segments, especially those without internet access, leading to biased results.

Question 9: A clothing retailer wants to find out what styles are trending among teenagers. Suggest a method of market research they could use and justify your choice.

Answer: They could use social media analysis, as teenagers frequently post and share fashion trends online, providing real-time insights.

Question 10: Draw a flowchart to show how a business might analyse the data collected from market research. Include at least three steps in the process.

Answer: The flowchart should include steps like 'Organize data', 'Identify patterns or trends', 'Draw conclusions', and 'Make marketing decisions'.