1.2 Flashcards
What are the 5 different ways businesses will change because of competitors:?
- Price
- Customer service
- Quality
- Product range
- Location
Define market size?
The number of individuals (including companies) within the market which are potential buyers or sellers of products. It can also mean the total value of products in the market
Define market share?
Is the proportion of total sales within the market that is controlled by the business
Define market segment?
An identifiable group of individuals, families, sharing one or more characteristics
What does Primary Research involve?
Getting information from potential customers yourself
Define focus group?
A small group of people discuss their attitude towards a product
Is observation an example of primary research?
Yes
What is a pro of large sample of primary research?
It is more accurate
What is a con of large sample of primary research?
More expensive
What is a con of primary research ?
It’s expensive and time consuming
What is a pro of primary research ?
It’s up-to-date,relevant and specific
What is secondary research?
Looking at work already published
What are examples of secondary research?
- Market research reports
- Government reports
- Newspapers
- Magazines
What are advantages of secondary research?
- Cheap
- Easily found
- Instantly available
What are disadvantages of secondary research?
- Not always relevant
- Not specific
- Could be out of date
Define Quantitative data?
Data to do with numbers
Define qualitative data?
Data to do with opinions and words
What is a reason for market segmentation?
It can help a business to find out who their customers are
Define segmentation?
When people within a market are divided into different groups
A market can be segmented by its…
Demographics
What are examples of demographics?
- Age
- Income
What are example of ways to segment the market
- Location
- Lifestyle
- Income
- Age
Define demographics?
Statistical data relating to the population and particular groups within
What are 2 purposes of market mapping?
- Competitors selling similar products- and how customers perceive them
- Any gaps in the market
What two variables do market maps normally have?
Price and quality
What are advantages of using social media to collect market research
They can see what sorts of things are popular or are increasing in popularity
What is a market map
When you plot different businesses in terms of how expensive it is and how expensive it is and how good the quality is
What are advantages of using s market map
You can spot competition and gaps in the market
What’s a disadvantage of a market map
They’re opinion based
What is a market segment
Putting people into different groups
What is product differentiation
Changing your products
What are ways you can segment a market
- Age
- Income
- Location
- Lifestyle
- Race
- Gender
What are benefits of market segmentation
- You know how a market is segmented
- Know market size and shares
- You can create a marketing strategy at their target market
What are limitations of market segmentation
- Generalising
- Not very specific
What is a SWOT analysis and what does it stand for
A way of analysing the company internally Strength Weaknesses Opportunity Threat
What is a focus group
A bunch of people that get together and discuss a new product
What is an observation
Noticing something
What is an interview
When an employer asks questions to see if they want to give the person the job
What is field research
Going and doing your own research (primary research)
What is validity
How valid something is
What is desk research
Using research that has already been done (secondary research)
What is qualitative data
Data to do with words and opinions
What is quantitative data
Data to do with numbers
What is a customer
The person who BUYS the product/service
What is market research
The action or activity of gathering information about consumers’ needs and preferences
What is a purpose of doing market research
- To understand customer needs
- To spot a gap in the market
What is an advantage of doing primary research
- Specific
- Recent
What is primary research
Research you conduct yourself
Disadvantages of primary research
Takes up time and money
What is secondary research
Using research that has already been conducted
What are advantages of secondary research
- May be less reliable
- May be out of date
