1.1 & 1.2 Flashcards
Market
The word market can mean three different things: A place where goods are traded between customers and suppliers.Trade in a particular type of product. The potential customers for a product.
Competitors are the different businesses that sell the same products in the same market. They compete with each other with the sales of customers.
Market Research
All businesses need their customers to buy their products, otherwise they won’t survive. One purpose of market research is to see who the business’s customers are. They can use market segmentation to do this. Market research can be used to have an understanding of their customers – e.g. what their needs are and how to satisfy them. Customers’ needs may include things like : the price of the product, the quality of the product, where it is sold and the range of that product. By understanding customers’ needs, businesses will be able to make products that meet these needs.
Primary Research
Research you do to know what your customers want e.g. a survey, a poll.
Secondary Research
Research that is already set up for anyone to look at. Usually found on the internet.
Market Segmentation
Segmentation is when people within a market are divided into different groups. Knowing the the different market segments will allow a business to identify their target market. They can create a marketing strategy aimed at their target market to make sure that their marketing is as effective as possible. A market can be segmented by its demographics. These are identifiable characteristics that people in one population might have. For example : Age (a teenage market) and income (how much different people will earn). But demographics isn’t the only way to segment a market. Other ways include : Location (where to sell your product) and lifestyle (whether or not people enjoy certain activities).
