Lower Sixth BS

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Lower Sixth BS

• Assessment return

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Q 1a Explain what is meant by primary market
research qualitative market research

• Primary research is gathering market research for
  the 1st time to meet a specific objective. It can
  involve questionnaires, telephone surveys or
  personal interviews
• Qualitative market research is in-depth research
  into motivations behind consumer behaviour or
  attitudes. It is usually conducted among small
  groups of people within the target market for
  products e.g. focus groups.

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Your good examples.1a..

• Richard PR is new data found by the company.
  This could consist of interviews, samples,
  questionnaires etc It is done by the company to
  find out what their customers would like in their
  product. It is a good way to monitor reactions
  and gain valuable feedback.
• Sam PR is where the customers are in immediate
  contact this could be done by interview. The
  advantage is that they will get immediate
  reaction from the person but this is time
  consuming and expensive

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Your good examples.1a..

• Alex Qualitative research is a question that has
  a wide variety of answers and wont get
  statistics back. It is more opinion based e.g.
  what do you think Hovis should make next?
• Luke Qualitative research is where a consumer
  of a particular product is asked reasons why they
  spend their money on a product and the reasons
  why they purchase it. This is effective for the
  manufacturer for them to see why the customer
  enjoys the product and for the consumer to tell
  them exactly and descriptively why they buy it.
  It also helps them see where they could improve
  the product.

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Qb) Best of Both is in the Introductory stage of
its product life cycle. Outline 2 possible
financial implications of this for British
Bakeries.

• The company has had to invest heavily in
  researching this new product which will have
  taken money away from marketing its other
  products.
• The launch has required heavy investment in
  marketing on market research and a new
  advertising campaign so they have spent more
  than the product has earnt from sales

• The launch of a rival product by Kingsmill might
  require thus British Bakeries might have to cut
  prices or do more advertisingmore money may have
  to be invested!
• The launch will result in a negative cash flow
  for the company (more money being spent than
  being earned).

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The Mark scheme
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Some of your good answers1b

• Luke one implication is the advertisingas it
  is in the introductory stage it will not be well
  known product, this means that not many people
  will be familiar with it and so the co will have
  to spend a substantial amount to make sure that
  people get to know about their product.
• Nathalie it would be the cost of conducting all
  the research and marketing. They used PR which is
  expensive targeting customers.. They will need
  a lot of money to fund the advertising e.g th TV
  advert.

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1 c) Best of Both has a USP. Examine two benefits
British Bakeries might receive from this USP.

• Allows BB to charge premium prices to cover the
  cost of developing introducing the new product.
• Offers opp to appeal to a mass market where
  there is a lot of competition form other bread
  companies
• A valuable basis for new advertising
  promotional campaigns
• BB can adopt a new image for all its products
  get lots of publicity from new product for the
  whole company.
• New product meets the needs of more customers
  attracts male females
• Free publicity surrounding the launch from
  newspaper TV articles
• Attracts more shareholder/stock market interest
  from publicity and growth in sales. (Share value
  increases)
• Extends the Product Life cycle for the product
  in the growth maturity lots of sales before
  extension strategies or decline.

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The mark scheme
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Your good answers .. 1c

• Will a benefit is that they have 100 of th
  market because there is no direct competition.
  Supermarkets will stock this brand as new so
  becoming established with supermarkets before
  rival products are introduced
• Luke a benefit is great advertising for its
  products, newspapers and magazines might write
  about the product, which people may read and
  decide they like the product and go out and
  purchase and so the papers have advertised the
  products for free

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1d) BB carried out extensive research before
introducing Best of Both onto the market. To what
extent might this make sure that this new product
succeeds?

• To what extent questions require you to offer a
  BALANCED answer looking at both FOR AGAINST the
  Question.

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The mark scheme
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Your good answers

• Will MR will help them decide on a target
  customer and then they can promote this product
  to that customer which will save money on
  promotion because they will promote it
  specificallyso less variety of promotion is
  required.
• Amber MR assures themselves that not only do
  they want the product but from doing tests that
  children actually like the product and its a
  means of advertising because if they like it they
  will be customers when the product is launched..
  Also they can decide on whether to launch or not
  before spending too much money on the launch and
  find out that its not successful later on