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AQA A LEVEL BUSINESS STUDIES > 3 Market Research & Interpreting Market Data > Flashcards

3 Market Research & Interpreting Market Data Flashcards

1
Q

Definition of Marketing

A

the management process of identifying, anticipating and satisfying customer requirements profitably

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2
Q

Role of Marketing

A

analysing customer needs
advertisements to target market
pricing strategies
brand awareness
increasing market share

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3
Q

Customer-Centric Company

A

focuses on the key interests of the customers
providing a wide range of goods/availability/high quality/low costs

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4
Q

What is a Market?

A

a place where buyers and sellers come together and exchange goods/services/money

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5
Q

High Market Share

A

high sales - high profits (depending on costs)
high outputs - giving the business power over suppliers to negotiate better deals (lower prices higher quality)
high prominence in the market raising profile and strengthening brand (makes launching new goods easier)

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6
Q

What is Market Research used for?

A

analyse exisiting position of the business
set marketing objectives
asses how effective marketing decisions are
identify possible actions and how to implement

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7
Q

Marketing Analysis Process

A

Planning (define objectives/develop research plan) → Implementation (implement and collect data) → Control & Review Success (interpret data and report analysis)

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8
Q

Market Research Factors

A

what/where/when/who/what factors influence their decision/who do they ask

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9
Q

Factors that Influence Customers

A

POLITICAL self-image, ethics, personal links (emotional)
ECONOMIC price, value for money, running costs
SOCIAL status, social norms, fashion trends
TECHNOLOGICAL reliability, duration, performance, features and specification

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10
Q

Competitiveness Definition

A

measures the extent to which a business offers good value for money relative to competitors - better customer service, availability of goods, quality, lower price.

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11
Q

Secondary Research Definition & Examples

A

research conducted by external sources
existing data, census, newspaper, annual reports, government data

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12
Q

Benefits of Secondary Research

A

less time consuming & costly to conduct
large amounts of data globally (international markets)
time efficient

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13
Q

Drawbacks of Secondary Research

A

may contain bias
may not be any for new industries
unfocused and not specific to your business
not necessarily legitimate
competitors have access to the same information

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14
Q

Primary Research Definition & Examples

A

research a data collection conducted first-hand by the business

interviews
surveys
questionnaires

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15
Q

Primary Research Benefits

A

competitive advantage
specific and focused to your industry/business
useful to analyse customer needs
builds brand loyalty
up to date

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16
Q

Primary Research Drawbacks

A

time-consuming and costly to conduct
only as good as the person conducting the research
bias potential
low response rates

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17
Q

Target Population

A

people relevant to the market research being undertaken

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18
Q

Sample

A

a group that is selected to represent the target population

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19
Q

Sampling Benefits

A

practical vs asking every member of a populationvalid if carried out correctly

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20
Q

Drawbacks of Sampling

A

difficult to properly represent a population
invalid if done incorrectly

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21
Q

Random Sampling

A

every single member of the population has an equal chance of being selected, limits bias potential

22
Q

Stratified Sampling

A

researcher divides the population into smaller groups of certain characteristics that don’t overlap (mutually exclusive) to represent the population

23
Q

Quota Sampling

A

member selected on a pre-set standard/specific attributes

24
Q

Quantitative Data (numerical form) Benefits

A

precise and accurate
often more straightforward to collect/analyse
easily comparable
anonymity

25
Q

Quantitative Data (numerical form) Drawbacks

A

does not reveal underlying reasons
may not be accurate
limited by set answers

26
Q

Qualitative Data (descriptive) Benefits

A

provides sense/feeling
explanation of numbers
captures changing attributes
encourages discussion

27
Q

Qualitative Data (descriptive) Drawbacks

A

subjective (opinions)
harder to analyse
lack of responses
sample bias

28
Q

Marketing Objectives

A

Sales Volume - quantity of items sold
Sales Value - value of items sold (revenue)
Sales Growth - rate of growth of the value of items sold
Market Share - share of the market for the items
Brand Loyalty - customers likelihood to buy the items

29
Q

As value of sales of a product rise, but the volume of sales fall - what happens to the price?

A

The price of each unit increases - depending on PED.

30
Q

Sales Growth Targets

A

Managers will want to measure how much the sales volume/value are increasing. The rate of growth will depend on factors such as overall growth of the market (contracting/shrinking/growing).

31
Q

% Growth in Sales

A

( change / original ) x 100

32
Q

Market Share

A

( sales of the product / total market sales ) x 100
the amount the business sells as a percentage of the total market

33
Q

Brand Loyalty Importance

A

repeat custom
costly to retain customers
creates a valuable competitive advantage
creates barrier to entry for new competitors
brands are valuable as they can be sold later

34
Q

When will you gain more Market Share?

A

if the market is contracting
competitor leaves the market
sales increases organically

35
Q

Market Mapping

A

used to understand how a brand is perceived in relation to competitors

analyses market conditions (two factors) to identify the position of a product relative

36
Q

Benefits of Market Mapping

A

used to help spot a gap in the market

37
Q

Drawbacks of Market Mapping

A

entirely subjective
gap in the market may not be appropriate (expensive, low quality)

38
Q

Examples of market Mapping Axis

A

low vs high price/quality/volume
necessity vs luxury
light vs heavy
healthy vs unhealthy
simple vs complex

39
Q

What is Correlation (Interpreting Market data)

A

correlation occurs when there is an apparent relationship between two factors

40
Q

Why do sales increase as customer income increases?

A

Positive correlation as when income increases, disposable income increases and sales will increase.

41
Q

Example of Negative Correlation

A

sales vs price

42
Q

Strength of Correlation
0

A

no correlation

43
Q

Strength of Correlation
-0.3

A

weak negative correlation

44
Q

Strength of Correlation
+0.8

A

strong positive correlation

45
Q

Strength of Correlation
-1

A

strongest weak correlation

46
Q

Strength of Correlation
+1

A

strongest positive correlation

47
Q

Benefits of Correlation

A

predict future sales
competitive advantage
considers investment of resources (increase capacity, employ more)

48
Q

Drawbacks of Correlation

A

subjective
overconfidence with results
may contain bias
based on past data
doesn’t consider external factors

49
Q

Extrapolation

A

Forecasting data by looking at what has happened in the past and that they will continue in the future. ASSUMES that conditions and external factors do not change.

50
Q

Confidence Level

A

the probability that the research findings are correct - the % possibility that an estimated range of possible values includes the actual value being estimated (how confident the primary research is representative of customers)

51
Q

Confidence Interval

A

the possible range of outcomes for a given confidence level

95% confidence level that sales will be ebtween £500,000 and £700,000

AQA A LEVEL BUSINESS STUDIES (6 decks)

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