Part A Short Questions

Briefly answer the questions below in the spaces provided.
Question 1
In order to understand your market you will need to build a company profile by finding and analysing answers to questions like those below. Explain how you would find answers to the following
questions. Please also answer any 5 of the questions.
• How many staff does your company employ?
• What is the age range of the staff?
• Are they mainly full-time, or do some work casual or part-time?
• Do employees in your organisation work a lot of overtime or, is this discouraged?
• Are there many company supported social activities for employees?
• Are your employees generally extroverted or quiet-natured?
• What are the work ethics/ values promoted within your organisation?
• Is there a leaning towards technology or a more old-fashioned approach to doing business?
• How long has your company been established?
• What sets you apart from your competitors – what is your point of difference?
• How are you perceived by the marketplace: youthful, prestigious and respected, ethical, environmentally supportive etc?
• Is your company physically separated over a number of sites?
• How do you communicate internally; face-to-face or through e -mail and an intranet system?
• How is your company structured; is there an abundance of managers and a strong hierarchical structure or is the company relaxed and non-hierarchical?
• How are important decisions made; are they made by committees or individuals and are employees involved in decision making?
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Question 2
Before you can effectively forecast a market what information on current and past market performance do you need to collect and evaluate?

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Question 3
What is the meaning of the acronym SWOT? How can it assist with business planning?
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Question 4
What other internal planning and performance measurement documents should be accessed in order to develop an accurate SWOT analysis and to contribute toward a marketing plan?
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Question 5
Explain how market segmentation can be applied to market research.
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Question 6
How does segmentation assist with market research?
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Question 7
When collecting research data you should use both qualitative and quantitative data. Explain what the 2 types of data are.
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Question 8
What processes can be used to collect market research data?
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Question 9
What market research information should be recorded?
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Question 10
Why is it necessary to incorporate examination of changes in population, economic activity and the labour force into a market research program?
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Question 11
What sustainable practices can be put in place to address environmental concerns?
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Question 12
What areas of concern should be included in environmental scanning procedures?
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Question 13
How can you present the information about markets, market trends and new marketing opportunities in an organisation? Explain the data that might be included in a report, plus any charts or graphs
that could be used to analyse, interpret and present data.
To whom would you submit these reports? (Position/ title of personnel)
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Question 14
Research and give a brief definition and understanding of the following:
A. Privacy Laws
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B. Trade Practices Act
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C. Direct Marketing Codes of Practice
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D. National Industry Standards for Marketing
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E. Copyright
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F. What is the Australian E-commerce Best Practice Model?
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Question 15
Describe how you would respond to the following ethical issues
Use of Images
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Protection of children
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Targeting specific community groups
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Part B: Project

Read the following scenario, answer the questions in a typed format and reference
Consider the following scenario:
An English couple came on a holiday to the Gold Coast and fell in love with Burleigh Beach. They were tired of the dreary English weather, and the drudgery of 9 – 5 jobs. For a long time they had
wanted to start a restaurant that represented their German/ English heritage; a place that served up rich and hearty food, reminiscent of a Bavarian Beer House.
One day, while walking along the beach, they saw a beachfront property for lease. It was modern, open-plan and bright. This wasn’t the style they wanted, but the location was perfect. They
discussed that they could always add a lot of dark wood to the interior to give it a more traditional beer house feel. They decided to make some enquiries.
The next day the property owner showed them around and, on seeing the ocean view, they got very excited. They could already picture live music acts playing on the deck while they served up
Bratwurst sausages, sauerkraut and large pints of stout beer. Their dream was fast becoming a reality.
They left for England the next day and immediately started doing some market research. They spoke to friends and family about their ideas and were overwhelmed with support. They had chosen a name
for the restaurant- Pig To Plate- and everyone they spoke to thought it was memorable and witty. When they showed photos of the location, everyone agreed that the view was world class. They started
doing taste tests in their hometown of Edinburgh. They selected a focus group of ten people, and were careful to choose a cross-section of ages, genders and occupations. Again, the support for
their food was overwhelming.
Based on the focus group results, the couple determined the following:
• More than three quarters of the male taste-tasters of German decent liked the food’s authenticity.
• The men of British decent were surprised by the Weisswurst sausage*. They had initially been sceptical of its ‘rubbery appearance’ but, after trying it, they had commented that the taste
was ‘not too bad’ and that it had ‘a bit of spice to it’.
• The women tested liked both the crisp and sweet pastry pretzels. The men preferred the crisp pretzels.
* Weisswurst sausage is a white sausage that has a thick, inedible skin. It is eaten by sucking the chewy meat out of the skin, and then discarding the skin.
Based on these findings, the couple decided to concentrate on traditional German food, to base their breakfast and lunch menu around Weisswurst sausages, and to offer a selection of crisp and sweet
pastry pretzels as an accompaniment to each meal.
With the name and the menu decided, the couple still had a few concerns. The lease for the restaurant was very high, and the terms of the contract were very strict, so they decided to ring the
owner to ask a few more questions. He reminded them that this was the only commercial restaurant premises on the entire Gold Coast strip that was absolute beachfront and, with a little more
independent research; the couple affirmed that this was true. This justified the high lease costs. And they were certain that with such an enviable location as a drawcard, they would not fall
behind in the lease and break the terms of their contract.
Now all that was left was surveying their target market: the local Burleigh residents. The couple wanted to know what their target market wanted, so that they could meet those wants. They created
an online survey and posted it on the Burleigh Tourism website ( www.goldcoastburleightourism.com.au ). They survey is attached (See Appendix 1).
Once they had 100 responses, the couple decided to collate the online survey results. To do this, the couple used a variety of formats to analyse the information provided by respondents. Some
examples are attached (See Appendix 2).
Satisfied that they had thoroughly researched the market, the couple started the restaurant. Their target market was the 20 – 35 year old beachgoer/ surfer looking for a place to socialize with
friends, drink beer and listen to live music. To cover their high lease costs, the food and drink was priced in the high-end range, but the couple were sure the location and live entertainment
would justify the higher prices. Within three months, the business failed. After weeks of struggling to meet the expenses, they fell behind in their lease, broke the terms of their contract and had
to close down.

YOUR TASK is to analyse the market research techniques used by this business.
1. Consider the following statement: “For market research to be useful, the information collected must be relevant, accurate and timely.”
a. Do you agree with this statement? Yes or No. Explain your answer.
b. Recreate the table below.
i. List four (4) collection methods the couple in this scenario used to gather market information.
ii. Explain what they did wrong in the collection process.
iii. Explain how this collection process could have been improved.

Market Research Collection Method What did the couple do wrong? How could this be improved?

2. For market research to be useful, it must be thorough. The table on the following page shows some background market information that the English couple in this scenario overlooked.
a. Recreate the table and, for each piece of market information, explain:
i. What research technique could have been used to gather this information
(ie. Primary or secondary (desk) research)
ii. What sources could have been used to gather this information
iii. How this information would have affected the initial research findings
Background Market Information What research technique could have been used to gather this information? What source/ sources could have been used to gather this information? How would
this have affected the initial research findings?
The median age of Burleigh Heads residents is 43 and the median household weekly income is $903 ie. Primary or secondary (desk) research
Burleigh Heads has strict commercial noise restrictions limiting the decibels of live music, and prohibiting it beyond 7pm
The last 2 restaurants at this beachfront premises went broke. In both cases, they fell behind in their high weekly lease payments and had to close down
Burleigh Heads is known for its outdoors, laid-back surf and beach culture.

b. What other information might have been relevant and useful when conducting market research for this restaurant?
i. List at least three (3) sources of information that could have been used
ii. Explain how this information could have been collected
iii. Explain why this information may have been useful and who would you give this information too
3. Consider the online survey tool the couple created to gather information about their target market (See Appendix 1).
a. List and explain the problems with this survey tool.
b. List at least five (5) questions you would have included if you created the survey. Include the response choices under each question.
c. Answer this survey yourself and collate the information from the classes response
4. Consider the example display tools the couple used to collate and analyse some of the data they collected (See Appendix 2)
a. List and explain the problems with each display tool.
b. Explain what display tool you would have chosen, and your reasons for choosing this format.
c. Create a display tool based on the answers you received from the class
5. When promoting the opening of the restaurant, the couple in this scenario sent an email merge to the respondents from the online survey, using email addresses they obtained from the survey.
List two types of legislation this could be in breach of.
6. What budgeting and time management decisions would you be able to make in relation to the types of data, sources, gathering and processing methods, combinations and quantities?

7. Identify one key external influence that they would have to adapt to and answer the following questions:
a) How could this have positively affected the level of customer service?
b) How did it influence customer priorities, needs and preferences?

8. What difficulties might you encounter in the process and how would you overcome them? Include budgeting, costing and resources (e.g. additional staff, distribution costs, equipment,
production costs, promotional costs, research and development, staff training etc).

Part C: Case Study

Task 1
Hyundai Santa Fe

Land Rover Discovery

Apple iPhone

Nokia lumia mobile phone

1. Using the 4P, s (Price, Product, Promotion and Placement) of the Marketing Mix compare each of the groups below and show their Marketing Mixes.
Hyundai Santa Fe
Price –
Product –
Promotion –
Placement –

Land Rover Discovery
Price –
Product –
Promotion –
Placement –

Apple Iphone
Price –
Product –
Promotion –
Placement –

Nokia lumia mobile phone
Price –
Product –
Promotion –
Placement –

2. What are the consumer priorities for each of these products?
Hyundai –
Land Rover –
Iphone –
Nokia –
Task 2

McDonalds meet market trends to suit international markets
McDonald’s features several products on their menu that are permanent and do not change. Examples of this include their basic hamburger and cheeseburger, the Big Mac and the Quarter Pounder. After
the initial development, these items remain on the menu for extended periods of time without undergoing significant changes. This strategy ensures that there is always something familiar for
consumers on the menu.
In addition to its permanent product offerings, McDonald’s regularly develops temporary products. The McRib, for example, is a product that is offered only seasonally. The Big Ocean burger is an
example of a burger that was developed as a temporary product, offered only for a few months in 2007. The purpose of this product development strategy is to give customers something new to
experience on each visit and to experiment with new items that may become permanent.
As McDonald’s has expanded internationally, it has created several products to meet consumer demand in the local markets. In the Netherlands, for example, they have developed the McKroket, a burger
featuring a typically Dutch kroket, a deep-fried, ragout-filled patty. In the Canadian province of Quebec, McDonald’s offers poutine, a traditional dish of french fries, gravy and curd cheese. Even
in parts of New England and Atlantic Canada, they have developed the McLobster, their version of the local lobster roll sandwich. This strategy ensures that local customers have foods to fit their
tastes.
In addition to developing new products for local markets, McDonald’s will also use an adaptation strategy whereby they take a product and modify it to fit local tastes. In India, for instance, the
Big Mac has been modified into the Maharaja Mac which contains no beef, in keeping with local diets. In Greece, the Big Mac has been adapted to use a pita bread instead of a bun. Even the McLobster
has been adapted to the McCrab in some U.S. markets where crab is a common food.

Questions:
1. What statistical analysis would McDonalds have used when studying these market trends?

2. What comparative market information would have been used during the research?

3. What performance could have instigated the changes?

4. What has McDonalds achieved in keeping up with market trends?

5. List 2 other examples of how ‘Fast Food’ outlets have adapted to current market trends.