1.3 Flashcards
Name types of information
Internal data External data Qualitative and quantitative data Historic and forecasted data Primary and secondary data
What is internal data
Internal data is data that is inside the business
What is external data
Data that is outside of the business
Examples of internal data
Sales data
Stock level
Examples of external data
Government statistics
Market research data
Using information that is outside a business means that…
There may be lots of information available
Can help a business understand their customers and market
potential problems of using external data
can be costly
time consuming
too much data
what is quantitive data
data expressed in quantities eg; statistical information
What is qualatitive data
data related to opinions
eg; views about the quality of a product
advantages of quantitive data
Larger amounts of data can be analysed
trends and patterns can be identified
Disadvantages of quantitve data
Provide facts but not reasoning behind the facts
statistical data can be misunderstood or misrepresenting
advantages of qualitative data
More detailed info can be obtained
detail can provide market insight
can give better understanding of consumer behaviour
disadvantages of qualitative data
Data collected is subjective and may not represent the whole market
can be more difficult to analyse the data
what is primary data
new data collected by the business itself
eg; questionnaire on customer preference
what is secondary data
existing information that has been collected by another party and is widely available
eg; newspapers or government statistics or MINTEL
Advantages of primary data
data tailored to the needs of the business
unique and not made available to competitors
disadvantages of primary data
costly
time consuming
advantages of secondary data
easier and cheaper to collect
widely available and large amounts of data to collect
disadvantages of secondary data
time consuming to find and analyse data
not spefically tailored to the needs of the business
what is historic data
data that has actually happened in the past and is factual and specific
Examples of historic data
Internal sales data eg cash flow statements
what is forecasted data
data that is predicted that will happen in the future
examples of forecasted data
Predicted sales figure
eg, cash flow forecast
