1.1 meeting customer needs Flashcards
what are the two main types of market research ?
-primary research
-secondary research
what is primary research ? what is it used for?
-primary research involves the collection of first hand data that did not exist before
-its original data
-the data is used for making specific decisions about the business e.g a new market product
name 5 types of primary research
-questionnaires
-interviews
-observations
-loyalty cards
-focus groups
what is secondary research ?
-secondary research is research that has already been undertaken by another organisation
-it already exists
name 5 types of secondary research
-national and local government
-market research organisations
-academic organisations
-internal data
-annual reports
name 3 benefits and drawbacks of primary research
+ kept private-not publicly available
+ more detailed insights
+ directly focused research objects
- time consuming
- risk of survey bias
- sampling may not be representative (typical)
name 3 benefits and drawbacks of secondary research
+ often free and easy to obtain
+ good source of market insights
+ quick and easy to access
- can quickly become out of date
- not tailored to business needs
- specialist reports often quite expensive
marketing mix definition
the plan for getting the right blend of product, place, price and promotion
what is marketing strategy ?
the medium to long term plan for meeting the marketing objectives through the marketing mix
marketing segmentation definition
Dividing potential customers into different groups. For example, age, gender or income to find areas that are underserved e.g bikes for older people
Marketing objectives definition
The targets the marketing department must achieve e.g increase sales by 15% in 12 months
What is a target market ?
The audience/ group of consumers that a business aims to sell is product/ service to
what is the market ?
The market is where buyers meet sellers, either face to face or online
What is mass marketing ?
Targeting the product/service to everyone instead of to one specific customer.
What is niche marketing ?
Identifying a customers specific wants and needs and selling it to that specific consumer.
+ and - of mass market
+more customers
+can build a strong market presence
-higher levels of competition
-lower profit margins
+ and - of niche markets
+ less competition
+customer loyalty
-no economies of scale
-vulnerable because they have a less diverse product portfolio
What is a brand ?
A brand is a good or service that has something that is unique and recognisable, this could be the way the product is designed or different features it has.
e.g adidas
What is marketing ?
Marketing can be defined as the department tasked with targeting the right product at the right target market.
What is a target market ?
A particular group of customers at which a product or service is aimed.
What is a dynamic market ?
Dynamic markets are markets that experience rapid and continuous change.
What are the 3 main risks of businesses ?
-Risk of failure
-Financial loss
-Lack of security
What is uncertainty?
Uncertainty is where a business is unable to foresee problems.
What is risk ?
Risk is where there is a chance something could go wrong and not end up as expected.
What often causes uncertainty within a business ?
Lack of information
What is market research ?
The process of collecting and processing information about the market that a business operates in.
how do you calculate market share
total sales of business/total sales of market (x100)
product orientation meaning
= when the business focuses on the innovation of the product, the product is the most important factor
+ of product orientation
-cheaper production costs
-less expenditure on market research
- of product orientation
-may not meet customer needs successfully
market orientation meaning
= when the business focuses on the market , catering to customers specific wants and needs
+ of market orientation
- greater customer trust and loyalty
-improved brand image (meeting customer needs)
- of market orientation
- consumer needs change constantly (higher costs to keep up with dynamic market)
qualitative data meaning
= data based on opinions and preferences
+ of qualitative data
- personal to consumers, more guidance to improve product/service
- of qualitative data
opinions can be biased
quantitative data meaning
= data based on numerical facts
+ quantitative data
- strongly reliable, based on “cold hard fact”
+ of market research
- allows business to stay more on top of trends
-reduces risks by testing conceptions
- of market research
- time consuming
- expensive
-may only focus on a small population of the businesses target market
what is added value
when a business adds to a product or service to make it more appealing to the consumer
ways to add value to a product (2)
-add new features (change in design)
-improve product packaging and design
