2 - Market research Flashcards
What is market research?
Gathering data about the market
What is the use of market research?
product development
budgeting
sales forceasting ect
What is primary research?
Information collected internally
Give an example of primary research
questionnaires
focus groups
interviews
observations
What is secondary research?
Data that already exists, conducted by another organisation
Given an example of secondary research
Annual reports
Internet sites
Government publications
What are the benefits of Primary research?
specific to the business
up to date and reliable
What are the drawbacks of primary research?
time-consuming
costly
difficult to conduct large samples
What are the benefits of Secondary research?
easily acsessible
fast
What are the drawbacks of secondary research?
not always up to date or accurate
in-depth studies are costly, the free data is often not in depth
What is quantitative data?
stats and figures like sales and market reports
What is qualitative data?
attitudes and intentions like interviews
What are the limitations of market reserach?
Can often be biased
time consuming
Small samples limit reliability
what is market segmentation?
dividing customers in a speciifc market into groups based on their characteristics
what is the use of market segmentation?
identify and satisfy the needs of a specific group
focuses business activity
builds brand loyalty
What is product oreintatioin?
When a business is product orientated they are focused on the production process and the product itself - believing that that is what the customer will want
What is market orientation?
When a business is market orientated they follow trends in a market and follow closely the needs and wants of the consumer
What dictates if a business is market-orientated or product orientated?
the kind of product
policy decision s
opinions of business leaders
nature and size of the market number of competitors
What is market segmentation?
When markets are divided into segments, made up of consumers with similar needs.
What is georgraphical segmentation?
when a customer may have a different need based on where they live
What is demographic segmentation?
dividing consumers based on -
age
sex
income
social class
What is psycological segmentation?
segmenting people based on their lifestyle, opinions and attitude
What is an example of psycological segmentation?
when newspapers are tailored for labor voters over conservatives ext
What is behavioural segmentation?
where customers are grouped based on how they relate to products
How are people grouped under behavioural segmentation?
usage rate - the quantity and frequency f their purchase
loyalty - product loyalty, Tesco clubcard ect
time and date of consumption - cereal businesses know they may only be eaten in the morning so encourage people to eat at night also
