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Market and Marketing Research Answers

Read about Market and Marketing Research here

Having just talked to the management team about why marketing is important, you now what to conduct some secondary research into the computer industry and primary research into consumers needs, views and wants.

Exercise:

Using the internet find some secondary information on the computer industry within your country or a country of your choice. See if you can find two pieces of information:

1. Market share of computer manufacturers within your country.
2. The value of the computer industry within your country.

A) Having found this information, list why you think it is important for LM Ltd to have both sets of data?

Primary Research

Your company needs to find out more about the potential of computer users.

B) What primary research methods are appropriate to find out about the needs of computer users. What are the advantages and disadvantages of each?

C ) Why is it important for LM Ltd to conduct both primary & secondary research?

Answers Here

Computer Industry

Market Share of Computer Manufacturers

You should have found market share information on computer manufacturers within your country, with the value of the industry also. The value of the industry is the total turnover of PC sales amongst all maunufacturers.

List why is it important for LM LTD to have both sets of data?

• The data will help management in decision making.
• The data will give management an idea of the competitiveness of the industry.
• Market share information will help the organisation to set realistic objectives for themselves.
• Industry sales will tell management overall if the PC industry is in decline, stagnating or growing

 

Primary research methods

The company can use any or all of the following methods to assist them in understanding consumer needs:

Questionnaires

Advantages

• Relatively cheap compared to other forms of research methods.
• Respondents can be guided through with ease.

Disadvantage

• There is always threat of bias from interviewer.

Personal Interviews

Advantages

• More qualitative and quantitative information can be otained from these.
• Respondents can be guided and questions can be explained clearly if they are not understood.

Disadvantages

• Cost of interviewers are expensive.
• There is a threat of a bias response.

Focus groups

Advantages

• Indepth qualitative data can be collected from a group of resondents.
• Discussion amongsts groups leads to greater understanding of consumer needs.

Disadvantages

• Can be difficult to organise.
• Costs of hiring a moderator i.e the person who will referee the focus group.
• Always dangers of bias from the moderator.

Why is it important for LM Ltd to conduct both primary and secondary research?

Both are crucial, secondary research will give the company initial information on whether the industry is in decline or not and will assist them in deciding whether to enter the industry. Primary information will give LM Ltd a greater insight into the needs of particular users, what the main reason they purchase a PC, from where and so on.