1.2 Flashcards
Reasons for businesses to identify customer needs?
Identify gaps in market
Identify and understand competitors
Improve marketing mix based on consumer opinions
Why do businesses identify customer needs?
If not, then they won’t generate enough sales
What is primary research?
Collecting information that did not exist before
What is secondary research?
Collecting information that already exists
What is qualitative data?
Information about peoples opinions and attitude
What is quantitative data?
Data that can be expressed as numbers
What are methods of primary research?
Survey and focus group
All the benefits of primary research
Meet specific needs
What is a negative of primary research?
Time consuming
What are the methods of secondary research?
Internet
Company accounts
Benefits of secondary research?
Cheap, free to obtain
Draw backs of secondary research
Not specific to business needs
Why is it important that market research data is reliable?
They should be reliable in order to make good business decisions, so that products are improved
What are the benefits of using social media to collect market research?
-cheaper
-saves time
- identifies popular trends
What is market segmentation?
Dividing the market into groups of buyers with similar characteristics and habits
What is a market map?
A diagram that can be used to position and compare products in the market
What are five ways of segmenting the market?
Age,location,gender,lifestyle,incomr
What are the customer needs
Price,quality,choice,convenience
What are the customer needs
Price,quality,choice,convenience
short term sources of finance
-overdrafts
-trade credit
what is an overdraft
An agreement with the bank to overspend on an account.
what is trade credit
The ability to buy stock now and pay for it at a later date.
long term sources of finance
-venture capitalist
-personal savings
-share capital
-bank loan
-retained profit
advantages and disadvantages of share capital
-Share capital is a source of
permanent capital
-The business is vulnerable to takeover
advantages and disadvantages of crowdfunding
-It acts as a form of market research.
-It can be difficult to reach the funding target.
