Market Research & Product Development Key Terms

What is the primary purpose of competitive analysis in business?

• To determine the price of a product

• To identify and examine the characteristics of a competing firm

• To create a marketing plan

• To develop a new product

Which of the following best describes a customer profile?

• A list of competitors in the market

• A description of the person or company likely to buy your product or service

• A financial report of a company

• A marketing strategy document

What type of data describes a group of people based on characteristics such as age, gender, and income?

• Psychographics

• Geographic Data

• Demographics

• Market Segments

What is direct competition?

• Competitors offering different products in the same industry

• Competitors in the same line of business offering the same product or service

• Competitors with different marketing strategies

• Competitors from different industries

What is the purpose of a focus group in market research?

• To analyze sales data

• To interview a group of potential customers for feedback

• To develop a new product

• To create a financial plan

Which type of data helps a business determine where its potential customers live?

• Psychographics

• Geographic Data

• Demographics

• Market Segments

What is indirect competition?

• Competitors offering the same product with different business strategies

• Competitors in a different industry

• Competitors with the same marketing goals

• Competitors offering different products in the same industry

What is the main goal of market research?

• To increase product prices

• To collect, record, and analyze information about customers, products, and services

• To create a new marketing strategy

• To develop a financial report

What is the process of dividing a broad market into sub-groups based on shared characteristics called?

• Market Research

• Market Segments

• Competitive Analysis

• Customer Profiling

What is primary data?

• Data collected from secondary sources

• Information collected for the first time to fit a specific purpose

• Data from previous research studies

• Information from competitors