NSL is a business based in country $$\(X\)$$ .It manufactures food products including bread and breakfast cereals.NSL uses lean production in its factory.Maintaining quality is important.NSL imports $$\(15 \%\)$$ of its raw materials.Changes in country X's exchange rate can affect businesses which import raw materials.NSL's Marketing Manager knows the business should respond to changes in consumer spending patterns.She is aware that market research can be used to help make business decisions. Explain two methods of market research a business could use to help make business decisions. Which is likely to be the best method for a manufacturing business to use? Justify your answer. .......................................................................................................................................
Exam No:0450_s25_qp_11 Year:2025 Question No:2(e)
Answer:
Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the best method of market research for a manufacturing business to use to make business decisions.
Points might include:
- Government sources/statistics [k] provide information from a wide number of people [an]
- Using internet/online sources [k] which is free / low cost / immediately available [an]
- Information from trade associations/journals [k] as specifically about the industry [an]
- Market research agency reports [k] can often be expensive/provide detailed information [an]
- Questionnaire [k] as provides up-to-date information / specific to the business [an]
- Interviews [k] to obtain in depth details/opinions [an]
- Survey [k] can reach out to more/large number of people [an]
- Focus group [k] as it provides detailed information / allows for follow-up questions [an]
- Test marketing [k] so the cost of any problem is limited to a smaller number of products [an]
- Observation [k] low cost [an]
- Newspapers/magazines [k]
Other appropriate responses should be credited.
Justification might include:
Government statistics [k] provide information from a wide number of people [an]. A focus group [k] can provide detailed information about consumer tastes [an].
Government statistics are better because they are based on wide samples whereas a focus group is based on a few existing customers so it may not identify what is happening in the market overall so the business may not produce the right product. [eval] [eval]
Points might include:
- Government sources/statistics [k] provide information from a wide number of people [an]
- Using internet/online sources [k] which is free / low cost / immediately available [an]
- Information from trade associations/journals [k] as specifically about the industry [an]
- Market research agency reports [k] can often be expensive/provide detailed information [an]
- Questionnaire [k] as provides up-to-date information / specific to the business [an]
- Interviews [k] to obtain in depth details/opinions [an]
- Survey [k] can reach out to more/large number of people [an]
- Focus group [k] as it provides detailed information / allows for follow-up questions [an]
- Test marketing [k] so the cost of any problem is limited to a smaller number of products [an]
- Observation [k] low cost [an]
- Newspapers/magazines [k]
Other appropriate responses should be credited.
Justification might include:
Government statistics [k] provide information from a wide number of people [an]. A focus group [k] can provide detailed information about consumer tastes [an].
Government statistics are better because they are based on wide samples whereas a focus group is based on a few existing customers so it may not identify what is happening in the market overall so the business may not produce the right product. [eval] [eval]
Knowledge points:
3.2.1.1. Market-orientated businesses (uses of market research information to a business)
3.2.1.2. Primary research and secondary research (benefits and limitations of each)
3.2.1.3. Methods of primary research, e.g. postal questionnaire, online survey, interviews, focus groups
3.2.1.4. The need for sampling
3.2.1.5. Methods of secondary research, e.g. online, accessing government sources, paying for commercial market research reports
3.2.1.6. Factors influencing the accuracy of market research data
3.2.2.1. Analyse market research data shown in the form of graphs, charts and diagrams; draw simple conclusions from such data
Solution:
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