Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Management of Business > 3.3 Market Intelligence > Flashcards

3.3 Market Intelligence Flashcards

1
Q

What is market intelligence commonly known as?

A

Market intelligence is commonly known as market research.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Besides understanding customer needs, what other information is important for businesses in making marketing-related decisions?

A

Besides understanding customer needs, other important information for businesses in making marketing-related decisions includes market conditions and information about competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why is understanding the needs and wants of customers important for businesses?

A

Understanding the needs and wants of customers is important for businesses as it enables them to satisfy customer needs better than competitors, thereby achieving a competitive advantage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the purpose of market intelligence for businesses?

A

The purpose of market intelligence for businesses is to assess the viability of new goods or services and to discover the target market/audience through opinions or input from customers regarding their interest in the product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does market intelligence refer to?

A

Market intelligence refers to the process of collecting, recording, and analyzing information about customers, competitors, and the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the initial step for marketers to create value for customers and build meaningful relationships with them?

A

The initial step for marketers is to gain fresh, deep insights into what customers need and want.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why are customer and market insights difficult to obtain?

A

Customer and market insights are difficult to obtain because customer needs and buying motives are not always obvious, and customers often struggle to explain their needs and purchasing decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How can marketers effectively gain good customer insights?

A

Marketers can effectively gain good customer insights by managing marketing information from a wide range of sources.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How does market intelligence help businesses?

A

Market intelligence helps businesses satisfy the needs and wants of customers and provides accurate information to reduce risk and make good decisions, especially in a globalized market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What role does market intelligence serve in sales forecasting?

A

Market intelligence serves as the basis for businesses to forecast sales.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the initial step for a business to satisfy the needs and wants of customers?

A

The initial step is for a business to understand the customer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What aspects of customers does understanding involve?

A

Understanding involves aspects such as the tastes and preferences of customers, their reactions to price changes, and assessing the effectiveness of advertising and promotional campaigns.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Can you provide an example of a company that undertook research to understand customer needs and preferences?

A

Yes, after experiencing a decline in sales and profits, Blackberry researched what customers wanted from smartphones in terms of function, user interface, and applications. They then redesigned their smartphones accordingly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What was the consequence of Blackberry’s previous approach to understanding customer needs?

A

Blackberry’s previous approach led to the failure of their smartphones, as the company had guessed what consumers wanted and missed the mark badly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the benefits for understanding the customer? [3]

A
  1. Risks associated with new product launches are reduced
  2. Future demand changes are accurately predicted
  3. Most favoured aspect of a product is determined
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Why is it crucial for businesses to accurately understand customer preferences and expectations?

A

It is crucial because accurately understanding customer preferences and expectations allows businesses to tailor their products and services effectively, increasing the likelihood of success in the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How does understanding the customer help determine the most favored aspect of a product?

A

Understanding the customer allows businesses to use different versions of a product in consumer tests to determine the aspects of design and performance rated most highly by consumers, which can then be incorporated into the final product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How does understanding the customer facilitate accurate prediction of future demand changes?

A

Understanding the customer enables businesses to predict future demand changes by considering external factors affecting customers, which allows for accurate sales forecasting.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How does understanding the customer help in reducing risks associated with new product launches?

A

Understanding the customer allows a business to conduct research to investigate potential demand for a new product or service, accurately assessing the likelihood of achieving satisfactory sales.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Can you provide an example of how understanding the customer can optimize promotional methods?

A

Yes, understanding the customer enables businesses to show consumers different versions of proposed advertisements to determine the most effective promotion method.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is one example of how external factors affecting customers can influence demand for a product?

A

An example is the increased consumer awareness of the near extinction of sharks, leading to a drop in demand for shark’s fins in wedding banquets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How does market intelligence contribute to accurate sales forecasting?

A

Market intelligence enables businesses to predict sales forecasts accurately by providing insights into market trends, customer behavior, and competitor activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does sales forecasting involve?

A

Sales forecasting involves predicting future sales levels and sales trends through the use of statistical methods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are some sources that sales forecasts can be based on?

A

Sales forecasts can be based on past sales data, industry-wide comparisons, and economic trends.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What benefits can an accurate sales forecast provide for a business?

A

An accurate sales forecast can help a business in planning inventory levels, allocating resources efficiently, and making informed strategic decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 3 benefits of sales forecasting?

A
  1. Benefits the whole business
  2. Allows for advance planning
  3. Avoids impact caused by demand change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How does an accurate sales forecast benefit the marketing department?

A

An accurate sales forecast enables the marketing department to determine the quantity of products to sell and distribute, aiding in the development of effective marketing strategies and resource allocation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What advantage does sales forecasting offer to the operations department?

A

Sales forecasting provides the operations department with insights into the quantity of products to produce and the quantity of raw materials to purchase, facilitating efficient production planning and inventory management.

17
Q

How does sales forecasting support the human resources department?

A

Sales forecasting allows the human resources department to predict future employee needs accurately, assisting in workforce planning, recruitment, and training strategies.

17
Q

What role does sales forecasting play in the finance department?

A

Sales forecasting enables the finance department to project costs and profits accurately, aiding in financial planning, budgeting, and resource allocation decisions to support the overall operations of the business.

17
Q

What does sales forecasting ensure for a business? [2]

A
  • Sales forecasting ensures that a business thinks ahead about how it plans to montor and track sales beyond the current period.
  • Through this, the management of the business could make decisions on
    business strategies.
18
Q

What can sales forecasting benefit the impact of shift of business decisions? [2]

A
  • Sales forecasting based on prior sales
    results and management experience reduce the chances of the company being
    blindsided by a surge or drop in demand.
  • For example, if management notices
    a seasonal pattern in sales, it can hire or reduce staff accordingly.
19
Q

What are the limitations of sales forecast? [3]

A
  1. Dependence on historical data
  2. Difficulty in predicting consumer preference
  3. Impact of external influences
20
Q

Why is having limited data terrible? [3]

A
  • Sales forecasting depends on historical data or past results to predict future sales.
  • However, if there is limited data available
    because the company is new, this reduces the effectiveness of generating a
    sales forecast.
  • Moreover, past sales results are not always indicative of future
    sales results.
21
Q

Why sales forecasting is difficult in predicting consumer preference? [2]

A
  • Sales forecasting may use some form of projection about future demand analysed through consumer
    preferences, opinions and attitudes.
  • This may be hard to gauge, since consumer
    tastes and preferences constantly vary.
21
Q

Why is sales forecasting limited from the impact of external influences? [2]

A
  • Precise sales forecasting is impossible to achieve,
    due to external factors that can influence the sales performance of businesses.
  • For example, technological advancements such as online video streaming
    caused the sales of blu-ray discs and DVDs to plummet severely.
21
Q

What are the two sources of data? [2]

A
  1. Primary research
  2. Secondary research
21
Q

What is primary research?

A

Primary research is the collection of first-hand data that is directly related to the needs of the business.

21
Q

What is secondary data?

A

Secondary data is the use and analysis of second-hand data that already exist.

21
Q

How can primary research be classified? [2]

A
  1. Qualitative research
  2. Quantitative research
21
Q

What is included in qualitative research?

A

Focus groups

22
Q

What includes in quantitative research? [3]

A
  1. Use of observation and recording
  2. Test marketing
  3. Consumer surveys
23
Q

What is focus group?

A

Focus group is a discussion group where people are asked about their attitude
towards a product, advertisement or new style of packaging.

24
Q

What happens in a focus group? [2]

A
  • In focus group
    discussions, participants are asked questions and encouraged to actively discuss
    their responses.
  • These discussions might also be filmed to be used as a source of
    data by market researchers.
24
Q

When are focus groups commonly used and why? [3]

A
  • Focus groups are commonly used to obtain feedback about new products, new
    brand names, new advertisements etc, before these are launched on to the market.
  • The information obtained from focus groups is deemed to be more realistic and
    accurate than responses from interview and surveys, due to the lack of discussion
    opportunity in the latter.
  • The information collected from focus groups usually have
    a strong influence on the final product or advertising decisions of the business.
24
Q

What are the limitations of focus group? [2]

A
  • Usually, a small sample is employed
    to keep costs down and it may be difficult to generalise from the results.
  • Moreover,
    participants are not always open and honest in front of other people. Peer pressure
    may also exist which hinders finding the truth about real behaviour and intentions.
25
Q

What are observation and recording?

A
  • Observation and recording involves gathering primary data by observing relevant
    people, actions and situations.
  • For example, a bank might evaluate possible new
    branch locations by checking traffic patterns, neighbourhood conditions and the
    location of competitor bank branches.
26
Q

What happens during observation and recording? [2]

A
  • Researchers often observe customer behaviour to gather insights that cannot be
    obtained from questionaires or surveys.
  • For example, Fisher-Price set up an
    observational lab to observe the reactions of small children to new toys. The Fisher Price Play Lab is bright area with toys everywhere, and children get to test FisherPrice prototypes, with toy designers observing to learn about new toys that little
    children are hyped about.
27
Q

What are the limitations of observation and recording? [3]

A
  • There are aspects that
    cannot be observed, such as feelings, attitudes and intentions.
  • Long-term behaviour
    is also diffcult to observe.
  • Hence, market researchers often use observation and
    recording together with other data collection methods.
28
Q

What is test marketing?

A

Test marketing involves promoting and selling a limited quantity of a new product
to a limited geographical area before a full-scale launch is made, with consumer
reactions and sales figures recorded.

29
Q

What happens during test marketing? [2]

A
  • The area selected must represent the social and customer profile of the rest of the country for test marketing results to be
    reasonably accurate.
  • Test marketing reduces the risks of a new product launch
    failing completely, but the evidence is not always completely accurate if the total
    population does not share the same characteristics and preferences as the region selected.
30
Q

What is consumer surveys?

A

Consumer surveys involve directly asking (potential) consumers for their opinions
and preferences.

31
Q

When is consumer surveys widely used? [3]

A
  • It is widely used and is best suited for gathering descriptive
    information.
  • A business that wants to know about people’s knowledge, attitudes, preferences, or buying behaviour can find out by asking them directly. - One advantage of consumer surveys is its flexibility, whereby it can be used to obtain
    many different kinds of information in various situations.
32
Q

What are the limitations of consumer survey? [4]

A
  • At times, people are not able to answer survey questions because they cannot remember or have not thought about what they do and why.
  • Also, people may not be willing to respond to
    unknown interviewers or about things they consider private.
  • Respondents may also
    answer survey questions even when they do not know the answer to appear smarter or more informed, or they may try to help the interviewer by providing agreeable
    answers.
  • Lastly, busy people may not take the time, or they may dislike the intrusion
    into their privacy.
33
Q

What are the advantages of primary research? [3]

A

 It is recent and updated, and thus more useful than most secondary data.
 It is collected for a specific purpose, and hence relevant and directly addresses
the questions the business wants answers to.
 It is confidential and no other business has access to the information.

34
Q

What are the disadvantages of primary research?

A

 It is expensive. Market research agencies can potentally charge thousands of
dollars for detailed consumer surveys and market research reports.
 It is time-consuming. Time and effort is required to collect and analyse the data.
 There could be doubts over its accuracy and validity, mainly due to the need to
use sampling. There is a risk that samples used may not be fully representative
of the population.

34
Q

What is secondary data?

A

Secondary data consists of information that already exist somewhere, having been collected for another purpose.

35
Q

How are government publications a secondary data? [2]

A
  • In many countries, government publications on population census, social trends,
    economic trends, family expenditure surveys are made available to the public.
  • In Singapore, businesses could refer to Singapore Department of Statistics for statistical information and trends about the
    country.
36
Q

What are some sources of secondary data? [7]

A
  1. Government publications
  2. Libraries
  3. Trade organisations
  4. Market Intelligence Reports
  5. Newspapers and specialist publications
  6. Internal business records
  7. Internet
37
Q

Why are libraries secondary data? [2]

A
  • In a large country such as the United States or England, the local state library would
    provide state information such as number of households, proportion of cultural and ethnic groups etc. In Singapore, such information would already be available on
    Singstat.
  • Libraries in Singapore, however, provide access to databases, journals, newspaper archives and Singapore publications.
38
Q

Why are trade organisations a secondary data? [2]

A
  • Trade organisations produce regular reports on the state of markets their members
    operate in.
  • Examples of such organisations in Singapore are Singapore
    Manufacturing Federation, Singapore Retailers Association and Real Estate
    Developers’ Association of Singapore.
39
Q

Why are market intelligence reports a secondary data? [3]

A
  • Market intelligence reports are very detailed reports on individual markets and
    industries produced by specialist market research agencies.
  • They are expensive to
    purchase, hence used mainly by large companies.
  • One well-known market research
    agency is the Nielson Company, which provides consumer reports and insights of
    more than 100 countries.
40
Q

Why are newspapers and specialist publications a secondary data?

A

Newspapers (and its archives) contain a wealth of information on current affairs.
Specialist publications such as the Economist and Time Magazine also feature regular articles on key industries, as well as the latest trends and developments.

41
Q

Why are internal business records a secondary data? [2]

A
  • If a business is an established one, it could potentially search within itself for a large
    quantity of secondary data for further analysis.
  • This data could come from sales records, feedback from customers, warranty claims etc.
42
Q

Why are the internet a secondary data? [2]

A
  • The internet has transformed how businesses collect secondary data, but it contains information that has already been gathered from the sources listed earlier.
  • Businesses should always check against the accuracy and relevance of the source
    whenever research is conducted just from the internet.
43
Q

What are the advantages of secondary research? [4]

A

 It can be obtained very cheaply, other than from the purchase of market intelligence reports.
 It identifies the nature of the market and helps with the planning of primary research.
 It can be obtained quickly without the need to use complicated data collection methods
 It allows for comparison of data from different sources

44
Q

What are the disadvantages of secondary research? [4]

A

 It may not be updated frequently and hence likely to be out-of-date.
 It might be originally collected for another purpose, and hence not entirely
suitable for the business using it.
 The data collection methods and the accuracy of the data may be unknown.
 The information may not exist for completely new products

45
Q

Why is secondary research preferred over primary research?

A

There is a wide range of secondary data available for businesses, and businesses
should always undertake secondary research as its starting point.

46
Q

Why is primary research important over secondary data? [2]

A
  • However, it is
    rarely sufficient on its own.
  • Hence, primary research is also undertaken to provide
    detailed and updated information on the market.

Management of Business (29 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions