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Discuss the reasons why businesses carry out market research. - Leaving Cert Business - Question A - 2010
Question A
Discuss the reasons why businesses carry out market research.
Worked Solution & Example Answer:Discuss the reasons why businesses carry out market research. - Leaving Cert Business - Question A - 2010
Step 1
Market
Answer
Understanding the market is crucial for businesses. Market research provides insights into the size and growth potential of the market. It also includes demographic information such as the age of consumers, their income levels, and other characteristics, enabling businesses to tailor their offerings effectively. Additionally, it measures brand recognition and recall, which are vital metrics for assessing brand health.
Step 2
Competitors
Answer
Market research reveals essential information about competitors including their products, market share, and strengths and weaknesses. This competitive analysis helps businesses understand where they stand relative to others and identify opportunities for differentiation.
Step 3
Marketing Mix
Answer
Research aids in deciding the marketing mix for a product. It informs businesses about the product features, pricing strategies, promotional methods, and distribution channels. By understanding these elements, businesses can effectively strategize to market their products.
Step 4
Step 5
Reduces Risk
Answer
Conducting market research significantly reduces the risks associated with launching new products. By understanding market dynamics and consumer preferences, businesses can make informed decisions that enhance the likelihood of success. It minimizes the risks related to resource investments in production and development.
Step 6