1.2 Flashcards
What are the four main customer needs?
Choice: When buying products, customers like to have a choice because different customers have different tastes and needs.
Quality: Customers assess quality as a product’s suitability and their opinion will depend on expectations.
Price: Customers will be influenced by price, especially by low prices.
Convenience: Convenience refers to how easy it is for customers to purchase desired products.
Why is it crucial for businesses to meet customer needs?
Generate sales:
Customers will continue to buy products
Repeat custom ensures that the business generates
cash flow.
Business survival:
As the reputation of the business grows, more and
more consumers are likely to buy its products.
This should lead to increased profits making it likely
that the business will continue to operate
What are the reasons for market research?
To identify and understand customer needs
To identify gaps in the market
To reduce risk
To inform business decisions.
What is primary research and how may businesses do this?
Market research carried out for the first time:
Survey/ Questionnaire
Observation
Interviews
Focus Group (small gorup of people discussing a product)
What is secondary research and how may businesses carry this out?
Market research which is information that has already been gathered:
Internet
Government Statistics
Company Reports
Newspapers
Trade Associations
Books
What is the difference between quantitative and qualitative data?
Qualitative - Data is non-measurable opinions and judgements
Quantitative - Data is measurable numbers and statistics
Why is social media crucial to market research?
Social media is a cheap way of understanding customers. It allows a business to:
Deepen their understanding of the market
Identify popular trends
Improve their products and marketing
Save time conducting market research
Why is validity and reliability of research data important?
Part of a market that groups buyers with similar buying habits, such as:
Location
Demographic
Age
Income
Lifestyle
What is a market map and what is it used for?
A market map is a four quadrant map based on two features of a product (e.g. high/low price and high/low quality) to allow a business to identify a gap in the market
What features of competitors products may businesses monitor?\
Price (Are their prices in a similar competitive range)
Product range
Quality (Are they delivering quality similar/ better)
Customer service
Location (Are they closer to their target market)
What may a business conduct to analyse its competitors and how they should effect their desicions?
A SWOT analysis (Strengths, Weaknessess, Opportunites, Threats)
