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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 7 - 2016
Question 7
Read the information supplied and answer the questions which follow. **Stitch Express** Stitch Express is a business set up by Alex Dunne originally offering clot... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 7 - 2016
Step 1
Outline the advantages and disadvantages of using secondary (desk) research techniques for collecting information on a market.
Answer
Using secondary (desk) research techniques can provide both advantages and disadvantages:
Advantages:
- Cost-Effectiveness: Secondary research is usually less expensive than primary research, as it often utilizes existing data found in reports or online sources.
- Time Efficiency: It is generally quicker to gather information from existing sources than to conduct primary research, allowing for faster decision-making.
- Wide Range of Data: More sources of data are available online, which can improve the breadth and accuracy of the information gathered.
- Benchmarking: Secondary research can be a starting point for further primary research by identifying gaps or areas of interest in a specific market.
Disadvantages:
- Availability of Data: Secondary data may not be completely reliable as it is accessible to competitors as well.
- Source Accuracy: The accuracy of information can be difficult to verify, leading to potential misinformation.
- Timeliness: The information may be outdated, affecting its relevance in a fast-changing market.
- Bias: Secondary research might be biased based on the perspective of the original author or researcher.
Step 2
Illustrate one source of desk research and one source of field research that Stitch Express might use, giving a reason for your answer in each case.
Answer
Desk Research Source:
Government Publications/CSO Reports: These documents provide data on consumer spending patterns and market trends. Stitch Express could use these reports to understand demand for dry cleaning services and to identify target demographics.
Field Research Source:
Surveys: Conducting surveys among existing and potential customers could provide valuable insights into their preferences and behaviors. This firsthand data would allow Stitch Express to tailor its offerings to meet customer needs.
Step 3
Evaluate the effectiveness of sales promotion techniques Alex could consider to boost sales.
Answer
Several sales promotion techniques can be effective for Stitch Express:
- Customer Loyalty Programs: Offering incentives such as discounts or points can encourage repeat business. Customers may feel valued, leading to increased loyalty and higher spending.
- Special Offers: Initiating 'Buy One Get One Free' promotions or introducing a loyalty card system that rewards repeat customers could attract new clientele and boost sales figures.
- Social Media Promotions: Running competitions on platforms like Instagram can increase brand visibility and engagement. Offering prizes linked to the dry cleaning service could engage customers and create buzz around the business.
Step 4
Discuss the benefits of branding as a marketing tool for business, providing examples to support your answer.
Answer
Branding serves as a critical marketing tool for businesses in several ways:
Differentiation
A strong brand enables a company to distinguish itself from competitors. For instance, Kellogg's brand recognition helps it stand apart in the cereal market.
Premium Pricing
Branding can allow businesses to command premium prices. Established brands like Apple leverage their reputation for high quality to charge higher prices for their products.
Repeat Purchases
Strong branding can lead to customer loyalty and repeat purchases. Brands like Coca-Cola benefit from customers returning for their familiar products.
Market Segmentation
Well-developed brands can effectively target specific market segments, ensuring that product offerings align with consumer preferences. For example, luxury brands target affluent customers willing to pay for exclusivity.
Trust and Credibility
Effective branding builds trust and credibility among consumers. Strong brands often enjoy a positive reputation, making consumers more likely to choose them over unfamiliar competitors.