cliff assignments

8/9/2019 Cliff Assignments

1/19

JD

USING MARKET RESEARCH TO SUPPORT DECISION MAKING

1. Describe the difference between ri!"r# "nd sec$nd"r# !"r%et rese"rch.

Ans. There "re tw$ t#es $f !"r%et rese"rch& sec$nd"r# !"r%et rese"rch "nd ri!"r# !"r%et

rese"rch. Here's " c($ser ($$% "t the difference between the tw$.

Secondary Market Research

Sec$nd"r# rese"rch is b"sed $n inf$r!"ti$n fr$! st)dies re*i$)s(# erf$r!ed b#

+$*ern!ent "+encies, ch"!bers $f c$!!erce, tr"de "ss$ci"ti$ns, "nd $ther $r+"ni-"ti$ns. $re/"!(e, U.S. Cens)s 0)re") inf$r!"ti$n "nd Nie(sen r"tin+s "re sec$nd"r# !"r%et rese"rch.

Sec$nd"r# !"r%et rese"rch is e"s# t$ find, "nd !)ch $f it is free $r ($wc$st. $r inst"nce, #$)c"n find sec$nd"r# !"r%et rese"rch $n(ine "t +$*ern!ent $r ind)str# websites, "t #$)r ($c"(

(ibr"r#, $n b)siness websites, "nd in !"+"-ines "nd news"ers.

The d$wnside $f sec$nd"r# !"r%et rese"rch is th"t it is n$t c)st$!i-ed t$ #$)r needs, s$ it !"#n$t be "s )sef)( "s ri!"r# !"r%et rese"rch. $r e/"!(e, sec$nd"r# rese"rch wi(( te(( #$) h$w

!)ch !$ne# U.S. teen"+ers sent ("st #e"r $n b"s%etb"(( sh$es, b)t n$t h$w !)ch the#'re

wi((in+ t$ "# f$r the "rtic)("r sh$e desi+n #$)r c$!"n# h"s in !ind.

Primary Market Research

Pri!"r# !"r%et rese"rch is t"i($red t$ " c$!"n#'s "rtic)("r needs "nd is c$nd)cted either b##$) $r b# " c$!"n# th"t #$) "# t$ c$nd)ct the rese"rch f$r #$). $c)s +r$)s, s)r*e#s, fie(d

tests, inter*iews, "nd $bser*"ti$n "re e/"!(es $f ri!"r# !"r%et rese"rch.

Pri!"r# !"r%et rese"rch (ets #$) in*esti+"te "n iss)e $f secific interest t$ #$)r b)siness, +et

feedb"c% "b$)t #$)r website, "ssess de!"nd f$r " r$$sed ser*ice, +")+e res$nse t$ *"ri$)s

"c%"+in+ $ti$ns, find $)t h$w !)ch c$ns)!ers wi(( "# f$r " new r$d)ct, "nd !$re.

Pri!"r# rese"rch de(i*ers !$re secific res)(ts th"n sec$nd"r# rese"rch, which is "n eseci"((#

i!$rt"nt c$nsider"ti$n when #$)'re (")nchin+ " new r$d)ct $r ser*ice. In "dditi$n, ri!"r#

rese"rch is )s)"((# b"sed $n st"tistic"( !eth$d$($+ies th"t in*$(*e s"!(in+ "s (itt(e "s 1 ercent

$f " t"r+et !"r%et. This tin# s"!(e c"n +i*e "n "cc)r"te reresent"ti$n $f " "rtic)("r !"r%et.

The d$wnside $f r$fessi$n"((# c$nd)cted ri!"r# !"r%et rese"rch is th"t it c"n be e/ensi*e

se*er"( th$)s"nd d$(("rs $r !$re. $rt)n"te(#, " +r$win+ n)!ber $f $n(ine t$$(s "(($w #$) t$c$nd)ct ri!"r# rese"rch s)ch "s s)r*e#s #$)rse(f "t *er# (itt(e c$st.


2/19

2. Use "n e/"!(e fr$! the c"se st)d# t$ e/("in the )r$se $f !"r%et rese"rch.

Ans. M"r%et rese"rch +"thers d"t" "b$)t " !"r%ets c$ns)!er in $rder t$ !eet "(( $f

their needs "nd w"nts. In the c"se st)d#, the# t"(%ed "b$)t h$w 3D is c$nst"nt(# e/"ndin+

int$ new ($c"ti$ns "r$)nd the w$r(d "nd "c4)irin+ new b)sinesses. M"r%et rese"rch isi!$rt"nt in this scen"ri$ bec")se 3D needs t$ be f)((# %n$w(ed+e"b(e in "(( $f the new

!"r%ets the# "re enterin+ "nd "(( $f their new c)st$!ers. 5ith these new "c4)isiti$ns, the#

"re +"inin+ new c$ns)!ers "nd wi(( need t$ c$!(ete s$!e !"r%et rese"rch in $rder t$ %n$w

wh"t these new c)st$!ers (i%e "nd w"nt fr$! " st$re (i%e 3D.

6. An"(#-e wh# !"r%et rese"rch sh$)(d be *iewed "s "n $n+$in+ r$cess.

Ans. M"r%etin+ is "n $n+$in+ b)siness r$cess th"t c$nsists $f f$)r distinct st"+es7 "n"(#sis,

("nnin+, i!(e!ent"ti$n "nd c$ntr$(. An )nderst"ndin+ $f the b"sic f)nd"!ent"(s $f

!"r%etin+ is i!$rt"nt if #$)r intern"ti$n"( !"r%etin+ "cti*ities "re t$ be s)ccessf)(.

The first st"+e $f the r$cess, "n"(#sis, in*$(*es c$((ectin+ 4)"(it"ti*e "nd 4)"ntit"ti*ed"t" "b$)t #$)r r$d)cts "nd $tenti"( !"r%ets. This inf$r!"ti$n is +ener"ted b# c$nd)ctin+

e/tensi*e !"r%et rese"rch )sin+ techni4)es s)ch "s s)r*e#s, ")dits, $bser*"ti$ns "nd c"n be

c$!"red with d"t" #$) h"*e c$((ected in the "st. This inf$r!"ti$n sh$)(d be c$!"red "ndc$ntr"sted "+"inst #$)r b)sinesses $b8ecti*es "nd res$)rces t$ deter!ine whether $r n$t there

"re "n# *i"b(e $$rt)nities t$ e/"nd int$ new !"r%ets.

If " c$!etiti*e "d*"nt"+e is f$)nd d)rin+ the "n"(#sis st"+e, the !"r%etin+ r$cess !$*es

$n t$ the ("nnin+ st"+e. P("nnin+ in*$(*es cre"tin+ str"te+ies th"t #$) c"n i!(e!ent t$"chie*e res)(ts in #$)r t"r+et !"r%et. 9$) sh$)(d c$nsider b$th #$)r sh$rt ter! str"te+ies "nd

($n+ ter! +$"(s in the ("nnin+ st"+e, "#in+ "rtic)("r "ttenti$n t$ c$!"rin+ the ris%s with

the $tenti"( rew"rds.

:. E*"()"te h$w !"r%et rese"rch, if )ndert"%en r$ert# "dds *"()e t$ the decisi$ns !"de b# "

("r+e c$!"n#. 5h# d$es it he(s t$ red)ce ris%;

Ans. M"r%et rese"rch +i*es #$) inf$r!"ti$n n$t $n(# wh"t #$)r c)st$!er w"nts t$ b)#, b)t

"(s$ wh$ #$)r c)st$!er is. As the "rtic(e st"ted, it is $ssib(e t$ find the "ddress, "st

)rch"se hist$r#, "nd b"sic de!$+r"hics $f c)st$!ers th$)+h !"r%et rese"rch. A(( $f

this inf$r!"ti$n wi(( "dd *"()e t$ " ("r+e c$!"n# "nd he( red)ce ris% bec")se it

inf$r!s the c$!"n# "b$)t where their c)st$!ers (i*e "nd h$w $ften the# wi(( b)#

r$d)ct. N$t $n(# th"t, b)t "(s$ h$w $ften the# wi(( +$ t$ " "rtic)("r st$re "nd h$w !)ch

the# +ener"((# send. A(( $f this inf$r!"ti$n wi(( red)ce the ris% $f " f"i(ed "c4)isiti$n $r

f"i(ed "tte!t "t $enin+ in " new ($c"ti$n.


3/19

INFINITI

1. Describe wh"t is !e"nt b# the ter!

Ans. The !"r%etin+ !i/ is r$b"b(# the !$st f"!$)s !"r%etin+ ter! )sed "cr$ss "((

ind)stries. Its >in+redients? "re the b"sic c$!$nents f$)nd in "(( !"r%etin+ ("ns.

The# h"*e been c"te+$ri-ed int$ the f$(($win+& r$d)ct, rice, ("ce "nd r$!$ti$n.

It=s " si!(e c$ncet th"t c"n be e"si(# re("ted t$ the f$$d ind)str#. Thin% "b$)t !"%in+ "

c"%e "nd "(( the in+redients th"t cre"te the >!i/,? which )(ti!"te(# r$d)ces s$!ethin+

de(ici$)s. M$st c"%es c$nt"in e++s, !i(%, "nd s)+"r "nd f($)[email protected])t "s in e*er# recie7 #$)

c"n "(ter the c"%e the fin"( r$d)ctB b# "(terin+ the "!$)nts $f e(e!ents c$nt"ined in #$)r

!i/. If #$) w"nt " sweeter c"%e, #$) "dd !$re s)+"r. 9$) w"nt " (itt(e he"t, "dd s$!e chi(is.It=s the s"!e with !"r%etin+. The $ffer #$) r$!$te t$ #$)r c)st$!ers c"n be "(tered b#

ch"n+in+ ) the in+redients in #$)r !i/. The %e# t$ r$d)cin+ " +$$d !"r%etin+ ("n is t$

!"%e decisi$ns th"t centre $n the f$)r Ps $f the c)st$!ers in #$)r t"r+et !"r%et in $rder t$

cre"te ercei*ed *"()e "nd +ener"te " $siti*e res$nse. 0# b(endin+ these f$)r !"r%etin+

!i/ in+redients #$)r end r$d)ct wi(( *"r# 8)st (i%e the recie f$r " c"%e.

2. E/("in the difference between "b$*e the (ine "nd be($w the (ine r$!$ti$n"( "cti*it#.

Ans. The w"# in which r$!$ti$n is t"r+eted is tr"diti$n"((# s(it int$ tw$ t#es

>"b$*e the (ine? "nd >be($w the (ine?.

Above the line promotion

This is "id f$r c$!!)nic"ti$n in the indeendent !edi" e.+. "d*ertisin+ $n T $r in the

news"ers. Th$)+h it c"n be t"r+eted, it c"n "(s$ be seen b# "n#$ne $)tside the t"r+et

")dience.

The !"in "i!s $f "b$*ethe(ine r$!$ti$n "re t$ inf$r! c)st$!ers, r"ise "w"reness "nd

b)i(d br"nd $siti$nin+. Ab$*ethe(ine tends t$ h"*e " hi+her c$st since the r$!$ti$n"(

!eth$ds )sed "re (ess recise.

Belo the line promotion

This c$ncerns r$!$ti$n"( "cti*ities where the b)siness h"s direct c$ntr$( $*er the t"r+et $r

intended ")dience. There "re !"n# !eth$ds $f be($wthe(ine, inc()din+ s"(es r$!$ti$ns,

direct !"r%etin+, ers$n"( se((in+ "nd s$ns$rshi.


4/19

6. An"(#-e h$w f$r!in+ the "rtnershi with red b)(( r"cin+ wi(( he( infiniti t$ "chie*e its

%e# !"r%etin+ $b8ecti*e $f intern"ti$n"( +r$wth.

Ans. In M"rch 211 Infiniti bec"!e the %e# "rtner t$ the Red 0)(( R"cin+ te"! "nd,in N$*e!ber 212, "nn$)nced th"t it w$)(d bec$!e the tit(e s$ns$r "nd e/c()si*e

technic"( "rtner t$ wh"t is n$w %n$wn "s Infiniti Red 0)(( R"cin+. Infiniti=s r$d)cts

"nd techn$($+# wi(( s)$rt the 1 te"! fr$! 216. i%e Infiniti, Red 0)(( R"cin+ is "

re("ti*e(# new $r+"ni-"ti$n b)t h"s !"de r"id r$+ress in $r!)(" One. There is " c(e"r(in% between wh"t Red 0)(( R"cin+ "nd Infiniti "re e"ch tr#in+ t$ "chie*e "s b$th h"*e "

sh"red "!biti$n f$r inc$!"r"b(e erf$r!"nce. This is %n$wn "s br"nd s#ner+#. S#ner+#

is where the c$!bin"ti$n $f tw$ br"nds (e"ds t$ res)(ts th"t "re $tenti"((# +re"ter th"nthe br"nds w$)(d "chie*e indi*id)"((#. Infiniti=s c)st$!ers st"nd $)t fr$! the cr$wd.

The# "re "ssi$n"te "b$)t desi+n "nd techn$($+# "nd the# w"nt the best $ssib(e

erf$r!"nce fr$! their c"rs F

"cti*it#. Infiniti=s


5/19

"rts e/ert Ce(in" 3"de, !)sic st"r Me("nie i$n" "nd Red 0)(( Air $rce M"n"+er 3$n

De*$)r.

%&''())S

1. Describe the )r$se $f !"r%et rese"rch.

Ans. A !"r%et rese"rch is " secific "nd *er# i!$rt"nt "rt $f !"r%etin+ str"te+#. It tries t$

%n$wn wh"t "re the thin+s th"t c$ns)!er need "nd h$w the c$!"n# h"s t$ desi+n "nd "d*ertise

the r$d)ct t$ the c$ns)!ers wi(( b)# it when it wi(( be (")nched. This t#e $f rese"rch is )sed

b# b)sinesses t$ incre"se the (i%e(ih$$d th"t the r$d)cts wi(( be we(( recei*ed b# c$ns)!ers

when the# "re (")nched. In c$nc()si$n, the )r$se $f !"r%et rese"rch is +et i!$rt"nt

inf$r!"ti$n "b$)t !"r%et need, !"r%et si-e "nd c$!etiti$n t$ +et " s)ccessf)( r$d)ct.

2. E/("in the difference between ri!"r# rese"rch "nd sec$nd"r# rese"rch.

Ans. There "re tw$ t#es $f !"r%et rese"rch& sec$nd"r# !"r%et rese"rch "nd ri!"r# !"r%et

rese"rch. Here's " c($ser ($$% "t the difference between the tw$.

Secondary Market Research

Sec$nd"r# rese"rch is b"sed $n inf$r!"ti$n fr$! st)dies re*i$)s(# erf$r!ed b#+$*ern!ent "+encies, ch"!bers $f c$!!erce, tr"de "ss$ci"ti$ns, "nd $ther $r+"ni-"ti$ns. $r

e/"!(e, U.S. Cens)s 0)re") inf$r!"ti$n "nd Nie(sen r"tin+s "re sec$nd"r# !"r%et rese"rch.

Sec$nd"r# !"r%et rese"rch is e"s# t$ find, "nd !)ch $f it is free $r ($wc$st. $r inst"nce, #$)

c"n find sec$nd"r# !"r%et rese"rch $n(ine "t +$*ern!ent $r ind)str# websites, "t #$)r ($c"((ibr"r#, $n b)siness websites, "nd in !"+"-ines "nd news"ers.

The d$wnside $f sec$nd"r# !"r%et rese"rch is th"t it is n$t c)st$!i-ed t$ #$)r needs, s$ it !"#n$t be "s )sef)( "s ri!"r# !"r%et rese"rch. $r e/"!(e, sec$nd"r# rese"rch wi(( te(( #$) h$w

!)ch !$ne# U.S. teen"+ers sent ("st #e"r $n b"s%etb"(( sh$es, b)t n$t h$w !)ch the#'rewi((in+ t$ "# f$r the "rtic)("r sh$e desi+n #$)r c$!"n# h"s in !ind.

Primary Market Research

Pri!"r# !"r%et rese"rch is t"i($red t$ " c$!"n#'s "rtic)("r needs "nd is c$nd)cted either b#

#$) $r b# " c$!"n# th"t #$) "# t$ c$nd)ct the rese"rch f$r #$). $c)s +r$)s, s)r*e#s, fie(d

tests, inter*iews, "nd $bser*"ti$n "re e/"!(es $f ri!"r# !"r%et rese"rch.

Pri!"r# !"r%et rese"rch (ets #$) in*esti+"te "n iss)e $f secific interest t$ #$)r b)siness, +etfeedb"c% "b$)t #$)r website, "ssess de!"nd f$r " r$$sed ser*ice, +")+e res$nse t$ *"ri$)s

"c%"+in+ $ti$ns, find $)t h$w !)ch c$ns)!ers wi(( "# f$r " new r$d)ct, "nd !$re.

Pri!"r# rese"rch de(i*ers !$re secific res)(ts th"n sec$nd"r# rese"rch, which is "n eseci"((#

i!$rt"nt c$nsider"ti$n when #$)'re (")nchin+ " new r$d)ct $r ser*ice. In "dditi$n, ri!"r#rese"rch is )s)"((# b"sed $n st"tistic"( !eth$d$($+ies th"t in*$(*e s"!(in+ "s (itt(e "s 1 ercent

$f " t"r+et !"r%et. This tin# s"!(e c"n +i*e "n "cc)r"te reresent"ti$n $f " "rtic)("r !"r%et.


6/19

The d$wnside $f r$fessi$n"((# c$nd)cted ri!"r# !"r%et rese"rch is th"t it c"n be e/ensi*e

se*er"( th$)s"nd d$(("rs $r !$re. $rt)n"te(#, " +r$win+ n)!ber $f $n(ine t$$(s "(($w #$) t$

c$nd)ct ri!"r# rese"rch s)ch "s s)r*e#s #$)rse(f "t *er# (itt(e c$st.

6. An"(#se wh# "n $r+"nis"ti$n (i%e Ke(($++=s w$)(d )se b$th 4)"(it"ti*e "nd 4)"ntit"ti*e d"t".

Ans. )"ntit"ti*e rese"rch is d"t" which is in n)!eric"( f$r! "nd is )s)"((# +"thered fr$! "

("r+e s"!(e $f res$ndents. )"ntit"ti*e rese"rch is secific"((# "ss$ci"ted with fi+)res $r

n)!bers th"t he( t$ !"%e the rese"rch !$re $b8ecti*e fr$! " ("r+e n)!ber $f c$ns)!ers.

Ke(($++=s )se )"ntit"ti*e rese"rch t$ de*e($ their !"r%etin+ ("ns bec")se this !eth$d $f

rese"rch is !$re re(i"b(e "s it is b"sed $n fi+)res "nd st"tistics which w$)(d +i*e Ke(($++=s "

"cc)r"te $ini$n $n the )b(ic res$nse t$ their ide"s. An e/"!(e $f 4)"ntit"ti*e rese"rch

which Ke(($++=s h"s )ndert$$% is s)r*e# in which the# find $)t the st"tistics "nd !"8$rit# $f

e$(e wh$ w$)(d h"*e " $siti*e res$nse $r ne+"ti*e res$nse t$ s)r*e# 4)esti$ns

)"(it"ti*e rese"rch is c$ncerned secific"((# "b$)t c$ns)!er res$nses, fee(in+s, "ttit)des "nd

descriti$ns. )"(it"ti*e rese"rch cre"tes " c$n*ers"ti$n with c$ns)!ers re+"rdin+ Ke(($++=s

new ide"s which enc$)r"+e the c$ns)!er=s re"cti$n "(s$. An e/"!(e w$)(d be th"t Ke(($++=s

intr$d)ces " new r$d)ct ide" "nd "(($ws rese"rchers t$ )nderst"nd wh"t the# thin% $f it "nd

h$w it !"%es the! fee(, whether the# find it interestin+ $r n$t. $c)s +r$)s "re " !eth$d )sed

f$r )"(it"ti*e rese"rch7 where s$!e$ne !$der"tes " +r$) $f si/ $r se*en c$ns)!ers t$ the

ide"s sh$wn t$ the!. An e/"!(e $f this w$)(d be new dr"win+s $r i!"+es, $r e*en different

t#es $f new f$$d r$t$t#es t$ t"ste. Ke(($++=s d$ this t$ +"in the best feedb"c% thr$)+h

c$ns)!ers which wi(( benefit the! i!!ense(# "s it wi(( "(($w the! t$ h"*e " !)ch better ide"

$n wh"t t$ +i*e their c$ns)!ers "s the# wi(( %n$w wh"t...

:. E*"()"te wh# !"r%et rese"rch c"n red)ce the ris%s $f " new r$d)ct (")nch.

Ans. C$!"nies stri*e t$ de*e($ "nd r$d)ce e/"ct(# wh"t c)st$!ers w"nt, when the# w"nt it

"nd t$ "cc$!(ish "(( $f th"t with n$ ris% $f $*erst$c%s. 0)t s)ch " !"n)f"ct)rin+ nir*"n" h"s

bec$!e incre"sin+(# diffic)(t t$ "tt"in, +i*en c)st$!ers= 4)ic%(# ch"n+in+ references, the

heter$+eneit# $f their de!"nds "nd the res)(tin+ !icr$ se+!ent"ti$n $f !"n# r$d)ct

c"te+$ries. T$d"#, !"n# c$ns)!er +$$ds c$!"nies h"*e been f$rced t$ "cc$!!$d"te s!"((er

!"r%ets, "s these niches $ften r$*ide the $n(# "th t$ +r$wth "nd esc"e fr$! he"*# rice

c$!etiti$n. At the s"!e ti!e, f$rec"stin+ the e/"ct secific"ti$ns "nd $tenti"( s"(es *$()!es

$f new r$d)cts is bec$!in+ !$re diffic)(t th"n e*er. Recent st)dies h"*e c$nfir!ed the

r$b(e!s $f new r$d)ct c$!!erci"(i-"ti$n,1 with new(# (")nched r$d)cts s)fferin+ fr$!

n$t$ri$)s(# hi+h f"i()re r"tes, $ften re"chin+ J $r +re"ter. The !"in c)(rit h"s been " f")(t#

)nderst"ndin+ $f c)st$!er needs. Th"t is, !"n# new r$d)cts f"i( n$t bec")se $f technic"(

sh$rtc$!in+s b)t bec")se the# si!(# h"*e n$ !"r%et. N$t s)rrisin+(#, then, st)dies h"*e

f$)nd th"t ti!e(# "nd re(i"b(e %n$w(ed+e "b$)t c)st$!er references "nd re4)ire!ents is the


7/19

sin+(e !$st i!$rt"nt "re" $f inf$r!"ti$n necess"r# f$r r$d)ct de*e($!ent. T$ $bt"in s)ch

d"t", !"n# fir!s h"*e !"de he"*# b)t $ften )ns)ccessf)( in*est!ents in tr"diti$n"(

!"r%et rese"rch.

P(RTA%ABIN

1B Describe h$w " b)siness s)ch "s P$rt"%"bin )ses !"r%etin+ t$ dri*e b)siness.

Ans. P$rt"%"bin $er"tes in " hi+h(# c$!etiti*e !"r%et. There "re n$w $ther b)sinesses

r$d)cin+ si!i("r b)i(din+s. P$rt"%"bin needs t$ r$*ide r$d)cts "nd ser*ices th"t s"tisf#

c)st$!ers= needs. P$rt"%"bin !)st "(s$ ens)re th"t c)st$!ers )nderst"nd the difference

between P$rt"%"bin r$d)cts "nd c$!etit$rs= r$d)cts in ter!s $f 4)"(it# "nd (e*e(s $f

ser*ice. T$ %ee its (e"din+ $siti$n "nd !"r%et sh"re, P$rt"%"bin f$c)ses $n tw$ "re"s& itsee%s new c)st$!ers "nd r$*ides e/ceti$n"( ser*ice t$ ret"in e/istn+ $nes.

M"r%etin+ is theref$re "b$)t findin+ "nd %eein+ c)st$!ers. 0)siness writer Peter

Dr)c%er $ints $)t h$w i!$rt"nt +$$d !"r%etin+ is t$ " b)siness

P$rt"%"bin s)(ies re!i)! w$r%in+ en*ir$n!ents t$ c(ients wh$ de!"nd e*er

hi+her st"nd"rds. It !"int"ins its (e"din+ $siti$n in " c$!etiti*e !"r%et with " b"("nced

!"r%etin+ !i/.This is desi+ned t$ r$*ide c(ients with 4)"(it# r$d)cts "nd hi+hest ser*ice

(e*e(s. It h"s de*e($ed "s " tr)sted br"nd.

2B E/("in h$w P$rt"%"bin )ses different t#es $f !"r%et rese"rch, b$th ri!"r# "nd

sec$nd"r#, "nd different !eth$ds within these.

Ans. P$rt"%"bin de!$nstr"tes inn$*"ti$n in its e/citin+ r"n+e $f r$d)cts "nd new ide"s.

P$rt"%"bin )ses b$th ri!"r# "nd sec$nd"r# !"r%et rese"rch t$ find $)t wh"t its c)st$!ers

need.

Pri!"r# rese"rch is firsth"nd rese"rch, s)ch "s inter*iews "nd f$c)s +r$)s. S)ch

rese"rch $ften +i*es better 4)"(it"ti*e d"t" in the f$r! $f $ini$ns, *iews "nd c$!!ents.

P$rt"%"bin he(d f$c)s +r$)s with c)st$!ers "nd f$)nd th"t the# w"nted !$re (i+ht in $ffice

b)i(din+s "s this incre"sed r$d)cti*it#. P$rt"%"bin w"s "b(e t$ res$nd with the U(ti!$

isi$n r"n+e, which (ets in !$re (i+ht thr$)+h its incre"sed wind$w s"ce. Sec$nd"r#

rese"rch )ses d"t" "nd inf$r!"ti$n th"t h"s "(re"d# been )b(ished. It !"# r$*ide !"r%et

"nd ind)str# 4)"ntit"ti*e d"t", $ften in the f$r! $f st"tistics. 0r"nd *isi$n 4)"ntit"ti*e

rese"rch sh$wed the i!$rt"nce $f '$n ti!e "nd $n b)d+et' de(i*er#. In 2L, P$rt"%"bin

de(i*ered LL.J $n ti!e "nd $n b)d+et. This c$!"res *er# we(( "+"inst " c$nstr)cti$n

ind)str# "*er"+e $f J $n ti!e "nd :J $n b)d+et.


8/19


9/19

P$rt"%"bin "(s$ )sed !#ster# sh$in+, where rese"rches $se "s n$r!"( c)st$!ers. The

res)(ts $f !#ster# sh$in+ sh$w th"t c(ients "re i!ressed with the 'h)!"n' s%i((s $f

P$rt"%"bin st"ff.Thse inc()de c$)rtes#, bein+ he(f)(, b)i(din+ r"$rt "nd r$fessi$n"(is!.

S)ch s%i((s "re " %e# f"ct$r in b)i(din+ c)st$!er s"tisf"cti$n, cre"tin+ ($#"( c)st$!ers "nd

+ener"tin+ ree"t b)siness.0)siness writer rederic% Reich he(d, wh$ de*ised the Net Pr$!$ter Sc$re t$$(, c("i!s th"t

the $n(# re"( 4)esti$n " b)siness needs t$ "s% its c)st$!ers is& 'H$w (i%e(# "re t$) t$

rec$!!end )s t$ " friend $r c$((e"+)es;' Then PS sc$re sh$ws h$w $)("r P$rt"%"bin is

with e/istin+ c)st$!ers. This is i!$rt"nt "s r$c)rin+ " b)i(din+ is " ("r+e "nd $ften ($n+

ter! c$!!it!ent. A hi+h sc$re sh$ws th"t c)st$!ers "re h"# with P$rt"%"bin "nd re"d# t$

rec$!!end the!. PS "(s$ redicts s"(es +r$wththe hi+her the sc$re, the f"ster the b)siness

+r$ws. P$rt"%"bin )ses NPS t$ !e"s)re the stren+th $f this c)st$!er ($#"(t#. The res)(ts "re

e/tre!e(# $siti*e. On "*er"+e, "cr$ss thw UK hire "nd s"(es b)siness. P$rt"%"bin "chie*es

"n NPS sc$re $f L. Th"t c$!"res *er# we(( with the sc$res $f $ther ind)str# (e"ders, s)ch

"s G$$+(e B, 5"itr$se 6B, N$%i" B, "nd St"rb)c%s B. C)st$!ers "re c(e"r(# h"#with the 4)"(it# $f P$rt"%"bin r$d)cts "nd the ser*ice the# recei*e. This is *it"( in the

c$!etiti*e ind)str# P$rt"%"bin $er"tes in "s ree"t b)siness is "n i!$rt"nt "nd c$st

effecti*e w"# $f +ener"tin+ s"(es.


10/19

J(*NS(N MATT*&+

," State to bene-its to a b.siness o- carryin$ o.t a P&ST analysis"

Ans. It he(s #$)r b)siness t$ "*$id f"i()re $n ) "nd c$!in+ r$8ects, bec")se it d$esn=t !eet

the PEST "n"(#sis e/ect"ti$ns. Pr$*ides " wider )nderst"ndin+ $n h$w the b)siness w$r%s.

&/plain hy ST&M s.b0ects are important to technolo$y1-oc.sed b.sinesses"

Ans. 0ec")se STEM ed)c"ti$n cre"tes inn$*"t$rs "nd critic"( thin%ersw$r%ers. A STEM

(iter"te ers$n is "b(e t$ !"%e !e"nin+f)( c$nnecti$ns between w$r%, c$!!)nities, sch$$( "nd

+($b"( iss)es

2" Analy3e ho a company like Johnson Matthey can .se a P&ST analysis o- -actors in its

e/ternal environment to create a competitive advanta$e"

Ans. The C$!"n# w$)(d $er"te in " st"b(e en*ir$n!ent"( w"#. A*$idin+ h"*in+ " *i$("tin+

ec$n$!ic b)siness, h"*in+ +$$d s$ci"( f"ct$rs, s)ch "s +$$d !"r%etin+, "nd h"*in+ the c$!"n#

$n " (e"din+ $siti$n.

4" &val.ate hich o- the chan$es in Johnson Matthey5s e/ternal environment has had

the bi$$est impact on the b.siness" )ive reasons -or yo.r anser" 67 marks8

Ans" The recessi$n in 2 c")sin+ " dr$ in de!"nd f$r 3M r$d)cts. The c$!"n# h"d t$

dr$ their c$sts "nd incre"se their efficienc#. This !"%es it h"rd f$r e$(e t$ in*est. "nd "(s$

findin+ s%i(f)( e$(e th"t c"n !"%e r$d)ct !$re efficient with$)t )sin+ !$re res$)rces


11/19

ADIDAS

, Ans.

The !"r%etin+ !i/ is $ften referred t$ "s the ': Ps', i.e. r$d)ct, rice, ("ce "nd r$!$ti$n. T$

!eet c)st$!ers' needs " b)siness !)st de*e($ r$d)cts t$ s"tisf# the!, ch"r+e the ri+ht rice,

+et the +$$ds t$ the ri+ht ("ce, "nd it !)st !"%e the e/istence $f the r$d)ct %n$wn thr$)+h

r$!$ti$n.

9 Ans.

A f$r! !"r%etin+ in which " c$r$r"ti$n "#s f$r "(( $f s$!e $f the c$sts "ss$ci"ted with

" r$8ect $r r$+r"! in e/ch"n+e f$r rec$+niti$n. C$r$r"ti$ns !"# h"*e their ($+$s "nd br"nd

n"!es dis("#ed "($n+side $f the $r+"ni-"ti$n )ndert"%in+ the r$8ect $r r$+r"!, with secific

!enti$n th"t the c$r$r"ti$n h"s r$*ided f)ndin+. C$r$r"te s$ns$rshis "re c$!!$n(#

"ss$ci"ted with n$nr$fit +r$)s, wh$ +ener"((# w$)(d n$t be "b(e t$ f)nd $er"ti$ns "nd"cti*ities with$)t $)tside fin"nci"( "ssist"nce. It is n$t the s"!e "s hi("nthr$#.

2 Ans.

M"r%etin+ c$!risin+ $f "cti*it# th"t, tr"diti$n"((#, is c$!!issi$n free $r ch"r+ed "t "

fi/ed fee b# "d*ertisin+ "+encies which, !"in(#, e/c()des !"ss !edi" "d*ertisin+.

0e($w the (ine !"r%etin+ +ener"((# refers t$ !"r%etin+ r"ctices !"%in+ )se $f f$r!s $f

r$!$ti$n th"t d$ n$t in*$(*e the )se $f !"ss !edi", where, in " fir!=s )se $f "n "d*ertisin+

"+enc#, there is )s)"((# n$ c$!!issi$n ch"r+ed b# the "d*ertisin+ "+enc#, "nd th)s the e/ense

t#ic"((# "e"rs


12/19

$f "n# f$r! $f n$n!"ss !edi" r$!$ti$n inc()din+ s"(es r$!$ti$ns e.+. re!i)!s, rice

red)cti$ns, dis("#s, "nd re("ted $int$fs"(e "cti*it#B, direct !"r%etin+, )b(ic re("ti$ns

"cti*it#, s$ns$rshi, etc.

4 Ans.

Pr$!$ti$n"( "cti*it# is *er# e/ensi*e. Or+"ni-"ti$n w"nt t$ see " ret)rn $n in*est!ent ROIB

f$r the !$ne# the# send $n " r$!$ti$n"( c"!"i+n. S$ns$rshi $f $nd$n 22 w"s n$

e/ceti$n. E*er# "sects $f its r$!$ti$n"( c"!"i+n, b$th $n(ine "nd $ff(ine, w"s c$ntin)$)s(#

!$nit$red "nd !e"s)red. This en"b(ed "did"s t$ de!$nstr"te th"t th"t bec$!in+ the $ffici"(

s$rtswe"r P"rtner $f the $nd$n G"!es "nd e/c()si*e (icensee $f "(( br"nded "nd e*ent br"nded

""re( w"s c$st effecti*e. Thr$)+h$)t the c"!"i+n "did"s !$nit$red "(( $f its !edi"

c$*er"+e .This d"t" w"s then then )sed t$ est"b(ish whether the !"r%etin+ $b8ecti*e h"d been

"chie*ed.


13/19

A'DI

," Describe hat is meant by the term marketin$"

Ans" The "cti*ities $f " c$!"n# "ss$ci"ted with b)#in+ "nd se((in+ " r$d)ct $r ser*ice. It

inc()des "d*ertisin+, se((in+ "nd de(i*erin+ r$d)cts t$ e$(e. Pe$(e wh$ w$r% in !"r%etin+

de"rt!ents $f c$!"nies tr# t$ +et the "ttenti$n $f t"r+et ")diences b# )sin+ s($+"ns, "c%"+in+

desi+n, ce(ebrit# end$rse!ents "nd +ener"( !edi" e/$s)re. The f$)r 'Ps' $f !"r%etin+ "re

r$d)ct, ("ce, rice "nd r$!$ti$n

9" &/plain hy it is important to balance the marketin$"

Ans" Or+"ni-"ti$ns need " b"("nced !"r%etin+ !i/ t$ !eet the needs $f its c)st$!ers. A(di=s

f$c)s is $n $fferin+ the best $ssib(e 4)"(it# r$d)cts "t the ($west $ssib(e rices. E*er# b)#er

f$r A(di, fr$! fresh fr)it "nd *e+et"b(es t$ !e"ts "nd e(ectr$nics, is "n e/ert in their fie(d. The#($$% f$r r$d)cts fr$! "r$)nd the w$r(d. This en"b(es the! t$ +et the finest 4)"(it# r$d)cts th"t

A(di then se((s )nder its $wn br"nd ("be(s.

Price

Se(ectin+ the rices is $ne $f the !$st diffic)(t c$nsider"ti$ns when de*e($in+ " !"r%etin+ !i/.

Different ricin+ str"te+ies th"t "re c$!!$n(# )sed inc()de&

M"r%et enetr"ti$n F ch"r+in+ ($wer rices f$r new r$d)cts t$ he( the! enter the

!"r%et "nd +"in !"r%et sh"re 4)ic%(#.

C$!etiti*e ricin+ F ricin+ "t " s(i+ht(# ($wer rices th"n c$!etit$rs.

Str"te+ic ricin+ F e!h"si-in+ the 4)"(it# $r br"nd $siti$nin+ $f " r$d)ct t$ "(($w "

hi+her rice t$ be ch"r+ed.

2" Analy3e the -actors that mi$ht a--ect the location o- a ne Aldi store"

Ans. The ("ce e(e!ent $f the !"r%etin+ !i/ in*$(*es identif#in+ where the r$d)ct $r ser*icewi(( be s$(d. A(di %ees its st$re ("#$)ts si!(e t$ (i!it w"ste "nd %ee c$sts d$wn. This !e"ns

A(di c"n f$c)s $n $fferin+ its c)st$!ers the ($west $ssib(e rices f$r its r$d)cts. 5hen

c$nsiderin+ new st$re ($c"ti$ns, A(di t"%es int$ "cc$)nt&


14/19

The n)!ber $f e$(e *isitin+ "n "re" "s we(( "s the de!$+r"hic $f the "re" f$r e/"!(e, the

$)("ti$n $f the "re" sh$)(d be !$re th"n 6, e$(e the $siti$n $f st$re A(di f$c)ses $n

ed+e $f the t$wn center ($c"ti$ns with +$$d *isibi(it# fr$! " !"in r$"d "nd n$t t$$ !)chc$!etiti$n The "ccessibi(it# $f the st$re "nd its )b(ic tr"ns$rt (in%sThe n)!ber $f "r%in+

s"ces "*"i("b(e.

4" &val.ate ho Aldi has identi-ied a .ni:.e position ithin a competitive marketplace"

Ans. A(di h"s " distinct "r$"ch t$ ret"i(in+ th"t h"s +i*en it " c$!etiti*e "d*"nt"+e in "

cr$wded !"r%et ("ce. A(di=s )ni4)e b"("nce $f the !"r%etin+ !i/ en"b(es it t$ r$*ide hi+h

4)"(it# $wn br"nded r$d)cts "t the ($west $ssib(e rice. A(di=s inn$*"ti*e "chie*e!ents $f A(di=s !"r%etin+ $b8ecti*es. The c"!"i+ns h"*e incre"sed A(di=s s"(es er

st$re b# Q1J $*er 6 #e"rs thr$)+h cre"tin+ !$re ($#"( c)st$!ers.


15/19

;NIS(N

1. Use "n e/"!(e, describe $ne $f the "cti*ities $f " tr"de )ni$n.

Ans. A tr"de )ni$n is "n $r+"ni-"ti$n !"de ) $f !e!bers " !e!bershib"sed

$r+"ni-"ti$nB "nd its !e!bershi !)st be !"de ) !"in(# $f w$r%ers. One $f " tr"de )ni$n's

!"in "i!s is t$ r$tect "nd "d*"nce the interests $f its !e!bers in the w$r%("ce.

M$st tr"de )ni$ns "re indeendent $f "n# e!($#er. H$we*er, tr"de )ni$ns tr# t$ de*e($ c($se

w$r%in+ re("ti$nshis with e!($#ers. This c"n s$!eti!es t"%e the f$r! $f " "rtnershi

"+ree!ent between the e!($#er "nd the tr"de )ni$n which identifies their c$!!$n interests "nd

$b8ecti*es.

2. E/("in the difference between "b$*ethe(ine "nd be($wthe(ine r$!$ti$n

Ans. Ab$*e the ine ATB "nd 0e($w the ine 0TB "d*ertisin+ "re tw$ ter!s th"t

"re b"ndied "r$)nd $ften these d"#s in the "d*ertisin+ w$r(d "nd $ften h"*e the ("# ers$n

c$nf)sed "s t$ wh"t the# st"nd f$r. It !i+ht be w$rth $)r whi(e t$ be+in this b# definin+ wh"t

c$nstit)tes the !et"h$ric


16/19

DRIE, >5hen b)d+et is iss)e "nd the br"nd w"nts t$ h"*e " c$ns)!er c$nnect 0T h"s better

ROI.?

6. An"(#-e the $tenti"( )ses f$r e(ectr$nic !edi" in c$!!)nic"tin+ with different ")diences $f

indi*id)"(s.

Ans. It h"s bec$!e "n incre"sin+(# i!$rt"nt "nd !e"s)r"b(e w"# $f re"chin+ different

t"r+et +r$)s $f e$(e. It "(s$ "(($ws f$r e(e!ents !e"s)r"b(e w"# $f re"chin+ different t"r+et

+r$) $f e$(e. It "(s$ "(($ws f$r e(e!ents inter"cti*it# b# r$*idin+ "n $$rt)nit# f$r )ser t$

e/ress their *iews "nd r$*idin+ "n $$rt)nit# f$r )sers t$ e/ress their *iews "nd s)$rt.

$r e/"!(e, Unis$n ("ced *ide$s $n 9$)T)be "nd set) "+es $n the s$ci"( netw$r%in+ sites

"ceb$$% t"r+eted "t ($c"( )sers "nd e$(e wh$ h"d "(re"d# sh$wn "n interest in )b(ic

ser*ices. The website fe"t)red "n inter"cti*e !" which "(($wed )sers t$ c(ic% $nt$ their$stc$de t$ see h$w c)ts c$)(d "ffect the! "nd de!$nstr"te the (e*e( $f s)$rt f$r the

c"!"i+n.

:. E*"()"te wh# " r$!$ti$n"( c"!"i+n w$)(d benefit fr$! )sin+ " r"n+e $f r$!$ti$n"(

techni4)es.

Ans. A r$!$ti$n"( c"!"i+n needs t$ !eet its $b8ecti*es. Unis$n d$es n$t se(( " r$d)ct $r

ser*ice. Inste"d it )ses r$!$ti$n"( c"!"i+n th"t "i! t$ inf()ence different "cti*ities t$

c$!!)nic"te with n$t 8)st th$se w$r%in+ in the )b(ic sect$r, b)t "(s$ the )b(ic


17/19

*&


18/19

ic%ed ) $n this the!e $f ne+"ti*e "ttit)de "nd s"id it w"s n$t d)e t$ "+ein+ "s !)ch "s h"*in+

been in the s"!e ("ce f$r " ($n+ ti!e. Indi*id)"(s h"d been thr$)+h " n)!ber $f restr)ct)rin+s

"nd d$wnsi-in+s, "nd h"d $ssib(# de*e($ed " c#nicis! "nd s)sici$n $f !"n"+e!ent, res)(tin+

in " fe"r $f ch"n+e.

2" Analy3e the di--erence beteen e/ternal and internal -actors> and hy this is important

hen developin$ strate$ies"

Ans. Once "n $b8ecti*e $f the b)siness $r r$8ect is deter!ined, the intern"( "nd e/tern"(

f"ct$rs th"t c"n i!"ct the $b8ecti*e "re identified )sin+ " tw$b#tw$ !"tri/. The tw$ c$()!ns

$f the ch"rt "re ("be(ed He(f)( "nd H"r!f)(. The tw$ r$ws $f the ch"rt "re ("be(ed Intern"(Ori+in "nd E/tern"( Ori+in.

The He(f)(Intern"( e(e!ent b$/ is desi+n"ted f$r the stren+ths $f the *ent)re, whi(e

H"r!f)(Intern"( is f$r we"%nesses. He(f)(E/tern"( is f$r $$rt)nities "nd H"r!f)(E/tern"(

is f$r thre"ts. Stren+th e(e!ents inc()de ch"r"cteristics $f the b)siness $r r$8ect th"t +i*e it "n

"d*"nt"+e $*er $thers, whi(e we"%nesses inc()de ch"r"cteristics th"t ("ce the b)siness $r r$8ect

"t " dis"d*"nt"+e c$!"red t$ $thers.

O$rt)nities inc()de e/tern"( e(e!ents the b)siness $r r$8ect c"n e/($it t$ its "d*"nt"+e,

whi(e thre"ts inc()de e/tern"( e(e!ents th"t c"n c")se r$b(e!s f$r the b)siness $r r$8ect. As

e/("ined b# 0)siness News D"i(#, e/tern"( f"ct$rs t#ic"((# reference thin+s the decisi$n

!"%ers "re )n"b(e t$ c$ntr$(. A c$!(ete S5OT "n"(#sis "(($ws decisi$n!"%ers t$ c$nsider

whether the $b8ecti*e is "tt"in"b(e. If n$t, the $b8ecti*e c"n be "!ended, $r " different $b8ecti*e

!"# be )t int$ ("ce. A new S5OT "n"(#sis !)st be erf$r!ed with "n# ch"n+e in $b8ecti*e.

4" &val.ate the relative importance o- di--erent elements o- its S


19/19

A %e# $)tc$!e $f its S5OT "n"(#sis w"s identif#in+ $tenti"( $$rt)nities "nd

thre"ts t$ re"re the b)siness f$r the f)t)re .H$we*er S5OT "n"(#sis $n its $wn is w$rth(ess

)n(ess it is )sed t$ ("n "nd dri*e ch"n+e. A(( $ther !)st inter"ct t$ f"ci(it"te ch"n+es.

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