Exploring Market Research Basics

What is the primary purpose of market research in business planning?

• To determine the company's internal strengths

• To understand customer needs and market trends

• To calculate the company's profit margins

• To develop new products without feedback

Which of the following is a common method used in market research?

• SWOT analysis

• Surveys and questionnaires

• Financial auditing

• Product development

What is a target market?

• A list of competitors in the industry

• A specific group of consumers a business aims to reach

• A type of market research tool

• A financial goal for the company

Which of the following is NOT a benefit of conducting market research?

• Identifying potential customers

• Reducing business risks

• Increasing production costs

• Understanding market trends

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

• A group of employees discussing company policies

• A small group of people discussing their opinions on a product

• A team of managers planning business strategies

• A collection of financial data

Which of the following is an example of secondary market research?

• Conducting interviews with potential customers

• Analyzing existing industry reports

• Creating a new survey

• Hosting a product launch event

What does the term "demographics" refer to in market research?

• The study of economic trends

• Statistical data about a population's characteristics

• The analysis of competitors' strategies

• The measurement of product quality

Why is it important to identify competitors in market research?

• To copy their business strategies

• To understand the competitive landscape and differentiate your product

• To avoid entering the market

• To increase production costs

Which of the following is a qualitative research method?

• Online surveys

• Focus groups

• Sales data analysis

• Market share reports

What is the role of a market research analyst?

• To design company logos

• To analyze data and provide insights on market conditions

• To manage the company's finances

• To oversee product manufacturing