Define the term ‘market research'.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2017). The mark or mark type is shown in brackets.

1. [2] Market research is defined as process of collecting, recording and analysis of data about customers, competitors and the market/product/service.
2. [1] Partial definition – limited understanding.
3. [3] Sound explanation of the limitations of using secondary market research. Secondary market research is the analysis of information that already exists – there are various sources of such information, e.g. internet, commercial information organisations. Main purpose of desk research is to gain information and market intelligence on competitors. Considered to be a low-cost approach to getting market information. However, there may be serious limitations in using secondary research information: The information may be historical/out of date and thus give a misleading picture. The general nature of the information may mean it is not suitable for purpose; it was not collected for the specific needs of a business. The data collection methods may be unknown and may also lead to inaccurate information. There may be significant gaps in the information leading to limitations on suitability.
4. [2] Limited explanation of the limitations of using secondary research.
5. [1] Understanding of secondary market research/list of limitations.