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Business A Level > 3.3.2 Markets and customers > Flashcards

3.3.2 Markets and customers Flashcards

1
Q

2 what is market research

A

gathering and analysing detail relevant to the marketing process

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2
Q

2 what is marketing research

A

decide what realistic objectives can be set
how to achieve them
reduce risk
primary and secondary
understand the market and customers

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3
Q

2 what is the purpose of marketing research

A

analyse existing position of business
decide on possible targets
identify possible actions
decide actions
assess how effective marketing decisions have been

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4
Q

2 what is the process of market research

A

1 define problem
2 develop research plan
3 implement, collect and analyse data
4 interpret data and report on it

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5
Q

2 what is analysis: planning

A

consider what activity to do

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6
Q

2 what is analysis: implementation

A

decide how best to do activity

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7
Q

2 what is analysis: control

A

reviewing the success of marketing activities

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8
Q

2 how does market research relate to the customer

A

who buys where?
why and what influences buying?
when, what and how do they buy?

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9
Q

2 what influences a customers decision to buy?

A

personal
economic
social
technical

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10
Q

2 how do personal factors affect a purchase

A

self image
emotional links
ethics

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11
Q

2 how do economic factors affect a purchase

A

price
value for money
running costs

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12
Q

2 how do social factors affect a purchase

A

status
social norms
fashion

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13
Q

2 how do technical factors affect a purchase

A

reliability
features and spec
life span
performance

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14
Q

2 what is competiveness

A

measures the extent to which a business offers good value for money compared to competitors

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15
Q

2 how can market research be competitive

A

managers get info on how to make good choices
how to provide for customers the best
better value for money

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16
Q

2 what are the types of market research

A

primary and secondary

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17
Q

2 what is primary research

A

first hand, use data that doesn’t currently exist
observe shop behaviours
interview customers
sample audiences

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18
Q

2 what is secondary research

A

data that already exists
newspapers, annual reports
useful as data is already there, cheaper
might not be in exact format though

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19
Q

2 what is qualitative data

A

emotions, opinions, measured descriptively
not statistically valuable, or easily measurable
good starting point for primary research

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20
Q

2 what is quantitative data

A

numbers, statistics, measurable format, numerical
no explanation to why it occurs, surveys

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21
Q

3 what is sampling

A

target population in a small scale
a representation of a group of people and items
interviewed by a manager or about a product

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22
Q

3 advantages of sampling?

A

gives market insight
saves money as not all
quicker than testing all

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23
Q

3 disadvantages of sampling

A

risk of reliance on sample
badly chosen might not be representative of target population

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24
Q

3 what is the risk of sampling

A

how people are selected to avoid bias
how the sample is conducted to be fair
sample size decision

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25
4 what is market mapping
analyses market conditions to identify the position of the product or brand relative to others managers can challenge perceptions highlight USP helps a business position itself in a market
26
4 what is the most common quadrant used
traditional, modern low price, high price
27
4 what was Gartner's magic quadrant
completeness of visions technical solution
28
4 what is interpreting data
gather data analyse it interpret it correlation extrapolation confidence intervals
29
4 what is correlation
an apparent relationship of one factor to another increased price reduced scales negative- one up own down positive- both up
30
4 what is the use of correlation
show key influences on demand forecast future sales given between -1 and 1 +-0.8 is strong +-0.2 is weak 0 is no correlation
31
4 what should you be cautious about with correlations
only show an apparent relationship doesn't prove one leads to another doesn't show direction could be a coincidence
32
4 what is extrapolation
forecasting sales by looking at past data and determining the extent the trend will continue at assumes conditions don't change past performance doesn't guarantee future success
33
4 what is confidence levels
sample gives an insight but not 100% accurate shows probability of being right 95% means 95% accuracy bigger sample size is more likely to be accurate margin of error is know as confidence interval
34
4 what is confidence interval
possible range out outcomes 95% confident between 200k and 300k has a large margin of error narrow range = small confidence interval. opposite is true
35
4 how is technology valuable to decision makers
gather more data to analyse more effectively detailed insight link data quicker build a relationship with customers
36
4 how is technology useful
variety of sources combined -big data doesn't guarantee success better, faster, cheaper information to improve choice
37
4 how is data used
helps business to make decisions regarding marketing issues. provide sales forecast
38
4 why is market research useful
provides information on what's happening outside business reduces risk
39
4 how does market research reduce risk
changes in market information gathered lack of information
40
4 how is changes in market helpful?
info may be out of data or irrelevant
41
4 how is the way information is gathered helpful?
secondary data might not be in the right format, extra information or show incorrectly
42
4 how is lack of information helpful?
may not want to spend money on research lack finance for detailed research
43
4 how is market research linked to ethics
ethical implementations of data consumer consent when storing data GDPR
44
5 what is elasticity of demand
the quantity demanded of any good is affected by the changes in price of goods, changes in income, changes in price of others goods and other factors
45
5 what is elastictiy
a measure of how much quantity demanded with be affected by changes in factors, life income price elasticity of demand income elasticity of demand
46
5 what is elasticity affected
price income advertising cross competition
47
5 how is the price elasticity of demand represented in numbers
always positive, however the relationship is actually a negative one
48
5 how is price elasticity of demand worked out
(change in quantity demanded / change in price) x100
49
5 what are the two types of price elasticity of demand
elastic inelastic
50
5 how do you know if its price elasticity of demand
it is greater 1 percentage change in price will be less than percentage change in quantity demanded
51
5 figure out what the price elasticity in demand is if: 10% rise in price of tomatoes 20% in quantity demanded
20/10 = 2, so demand is elastic
52
5 how do you know if its price inelasticity of demand
if its less than 1 percentage change in price will be more than percentage change in quantity demanded
53
5 figure out what the price inelasticity of demand if if: 10% rise in price of tomatoes 1% fall in quantity demanded
1/10 = 0.1, so demand is inelastic
54
5 what is the range for price elasticity
1 to infinity
55
5 what is the price range for price inelasticity
0 and 1
56
5 how does price elasticity change total revenue as price rises?
decreases it
57
5 how does price inelasticity change total revenue as price rises?
increases it
58
5 how does price increase impact price elasticity
bigger percentage decrease in quantity demanded revenue falls
59
5 how does price increase impact price inelasticity
smaller percentage increase in quantity demanded revenue rises
60
5 how does price decrease impact price elasticity
bigger percentage increase in quantity demanded revenue rises
61
5 how does price decrease impact price inelasticity
smaller percentage increase in quantity demanded revenue falls
62
5 what are 3 determinants of price elasticity of demand
availability of substitutes time necessary or luxuries
63
5 how does availability of substitutes impact price elasticity of demand
more subs = high elasticity less subs = low elasticity
64
5 how does time impact price elasticity of demand
longer time = higher elasticity shorter time = lower elasticity
65
5 how does necessities or luxuries impact price elasticity of demand
necessities = low elasticity luxuries = high elasticity
66
5 what is income elasticity of demand
measures the responsiveness of quantity demanded to changes in income house increase at 20% and income at 5% means house demand is high elasticity
67
5 how do you work out income elasticity of demand?
percentage change in quantity demanded / percentage change in income
68
5 what is income elasticity of demand for normal goods
income elasticity of demand is positive, means income increases as quantity demanded increases opposite is true
69
5 what is income elasticity of demand for inferior goods
income elasticity of demand is negative, means income increases as quantity demanded decreases opposite is true
70
5 what is income elasticity of demand
percentage change in quantity demanded is more than percentage change in income
71
5 what is income inelasticity of demand
percentage change in quantity demanded is less than percentage change in income
72
5 why does income elasticity of demand matter
managers can plan for changes in income of customers if the economy is doing well, there will be positive income elasticity of demand. opposite is true too. helps with production, staffing and finance
73
5 what is positive income elasticity
for normal goods, increased income means increased quantity demanded
74
5 what is positive income elasticity
for inferior goods, increased income means decreased quantity demanded
75
5 what is less than one income elasticity
inelastic, percentage change in quantity demanded is less than the percentage change in income
76
5 what is more than one income elasticity
elastic, percentage change in quantity demanded is more than percentage change in income

Business A Level (23 decks)

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