Identify and explain two methods of primary research PP could use to research the market in country Z.
- (a)Identify and explain two methods of primary research PP could use to research the market in country Z.[8]
- (b)Consider the advantages and disadvantages of the following three ways PP could start selling its products in country Z. Recommend which way PP should choose. Justify your answer.[12]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] Method: Questionnaire identified
- [1] Explanation of Questionnaire: lower response rate / relatively cheap method to gather consumer opinions / easy to collate responses
- [2] Application mark for Questionnaire (contextual reference to designs of pottery/dining sets)
- [1] Method: Survey identified
- [1] Explanation of Survey: cheap method / easy to collate responses / may not reach target audience
- [2] Application mark for Survey (contextual reference to designs of pottery/dining sets)
- [1] Method: Interview identified
- [1] Explanation of Interview: face-to-face completion of questions / qualitative data / interviewer bias
- [2] Application mark for Interview (contextual reference to designs of pottery/dining sets)
- [1] Method: Focus group identified
- [1] Explanation of Focus group: group of people familiar with the product
- [2] Application mark for Focus group (contextual reference to designs of pottery/dining sets)
- [1] Method: Consumer panel identified
- [1] Explanation of Consumer panel: randomly selected group of people – opinions gathered / relatively expensive to carry out
- [2] Application mark for Consumer panel (contextual reference to designs of pottery/dining sets)
- [1] Method: Observation identified
- [1] Explanation of Observation: trained researchers watch how consumers behave and interact in the market
- [2] Application mark for Observation (contextual reference to designs of pottery/dining sets)
- [1] Form a joint venture with a retailer in country Z (Advantage): Can benefit from local knowledge/more ideas
- [1] Form a joint venture with a retailer in country Z (Advantage): Increase sales and likelihood of success
- [1] Form a joint venture with a retailer in country Z (Advantage): Have more control
- [1] Form a joint venture with a retailer in country Z (Disadvantage): Have to share profit
- [1] Form a joint venture with a retailer in country Z (Disadvantage): May have disagreements and may not work well together
- [1] Sell to retailers in country Z (Advantage): Knowledge of the market in country Z
- [1] Sell to retailers in country Z (Advantage): Has retail outlets across country Z - no need for PP to set up outlets
- [1] Sell to retailers in country Z (Advantage): Local retailer may cover some distribution costs such as warehousing costs
- [1] Sell to retailers in country Z (Advantage): Saves set up costs of a PP store
- [1] Sell to retailers in country Z (Disadvantage): PP has reduced profit as retailer expects a profit margin
- [1] Sell to retailers in country Z (Disadvantage): Less control over how the pottery is displayed
- [1] Sell online to customers in country Z (Advantage): PP keeps profit margin of the retailer
- [1] Sell online to customers in country Z (Advantage): Sells directly to customers so gets to know customers' wants and needs better
- [1] Sell online to customers in country Z (Advantage): Wider market so higher sales likely
- [1] Sell online to customers in country Z (Advantage): Can sell at a cheaper price as lower costs
- [1] Sell online to customers in country Z (Disadvantage): Increased costs of packaging and delivery
- [1] Sell online to customers in country Z (Disadvantage): Possibility of pottery being broken in transit
- [1] Sell online to customers in country Z (Disadvantage): Some customers may not have access to the internet/may not see website
- [1] Sell online to customers in country Z (Disadvantage): Danger of fraud/hacking
- [1] Sell online to customers in country Z (Disadvantage): Refunds/exchanges may be more difficult
- [1] Sell online to customers in country Z (Disadvantage): Increase in storage costs
- [1] Sell online to customers in country Z (Disadvantage): Cannot touch the product
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