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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
Q

4 what is market mapping

A

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

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26
Q

4 what is the most common quadrant used

A

traditional, modern
low price, high price

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27
Q

4 what was Gartner’s magic quadrant

A

completeness of visions
technical solution

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28
Q

4 what is interpreting data

A

gather data
analyse it
interpret it
correlation
extrapolation
confidence intervals

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29
Q

4 what is correlation

A

an apparent relationship of one factor to another
increased price reduced scales
negative- one up own down
positive- both up

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30
Q

4 what is the use of correlation

A

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

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31
Q

4 what should you be cautious about with correlations

A

only show an apparent relationship
doesn’t prove one leads to another
doesn’t show direction
could be a coincidence

32
Q

4 what is extrapolation

A

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
Q

4 what is confidence levels

A

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
Q

4 what is confidence interval

A

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
Q

4 how is technology valuable to decision makers

A

gather more data to analyse more effectively
detailed insight
link data quicker
build a relationship with customers

36
Q

4 how is technology useful

A

variety of sources combined -big data
doesn’t guarantee success
better, faster, cheaper information to improve choice

37
Q

4 how is data used

A

helps business to make decisions regarding marketing issues. provide sales forecast

38
Q

4 why is market research useful

A

provides information on what’s happening outside business
reduces risk

39
Q

4 how does market research reduce risk

A

changes in market
information gathered
lack of information

40
Q

4 how is changes in market helpful?

A

info may be out of data or irrelevant

41
Q

4 how is the way information is gathered helpful?

A

secondary data might not be in the right format, extra information or show incorrectly

42
Q

4 how is lack of information helpful?

A

may not want to spend money on research
lack finance for detailed research

43
Q

4 how is market research linked to ethics

A

ethical implementations of data
consumer consent when storing data
GDPR

44
Q

5 what is elasticity of demand

A

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
Q

5 what is elastictiy

A

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
Q

5 what is elasticity affected

A

price
income
advertising
cross competition

47
Q

5 how is the price elasticity of demand represented in numbers

A

always positive, however the relationship is actually a negative one

48
Q

5 how is price elasticity of demand worked out

A

(change in quantity demanded / change in price) x100

49
Q

5 what are the two types of price elasticity of demand

A

elastic
inelastic

50
Q

5 how do you know if its price elasticity of demand

A

it is greater 1
percentage change in price will be less than percentage change in quantity demanded

51
Q

5 figure out what the price elasticity in demand is if:
10% rise in price of tomatoes
20% in quantity demanded

A

20/10 = 2, so demand is elastic

52
Q

5 how do you know if its price inelasticity of demand

A

if its less than 1
percentage change in price will be more than percentage change in quantity demanded

53
Q

5 figure out what the price inelasticity of demand if if:
10% rise in price of tomatoes
1% fall in quantity demanded

A

1/10 = 0.1, so demand is inelastic

54
Q

5 what is the range for price elasticity

A

1 to infinity

55
Q

5 what is the price range for price inelasticity

A

0 and 1

56
Q

5 how does price elasticity change total revenue as price rises?

A

decreases it

57
Q

5 how does price inelasticity change total revenue as price rises?

A

increases it

58
Q

5 how does price increase impact price elasticity

A

bigger percentage decrease in quantity demanded
revenue falls

59
Q

5 how does price increase impact price inelasticity

A

smaller percentage increase in quantity demanded
revenue rises

60
Q

5 how does price decrease impact price elasticity

A

bigger percentage increase in quantity demanded
revenue rises

61
Q

5 how does price decrease impact price inelasticity

A

smaller percentage increase in quantity demanded
revenue falls

62
Q

5 what are 3 determinants of price elasticity of demand

A

availability of substitutes
time
necessary or luxuries

63
Q

5 how does availability of substitutes impact price elasticity of demand

A

more subs = high elasticity
less subs = low elasticity

64
Q

5 how does time impact price elasticity of demand

A

longer time = higher elasticity
shorter time = lower elasticity

65
Q

5 how does necessities or luxuries impact price elasticity of demand

A

necessities = low elasticity
luxuries = high elasticity

66
Q

5 what is income elasticity of demand

A

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
Q

5 how do you work out income elasticity of demand?

A

percentage change in quantity demanded / percentage change in income

68
Q

5 what is income elasticity of demand for normal goods

A

income elasticity of demand is positive, means income increases as quantity demanded increases
opposite is true

69
Q

5 what is income elasticity of demand for inferior goods

A

income elasticity of demand is negative, means income increases as quantity demanded decreases
opposite is true

70
Q

5 what is income elasticity of demand

A

percentage change in quantity demanded is more than percentage change in income

71
Q

5 what is income inelasticity of demand

A

percentage change in quantity demanded is less than percentage change in income

72
Q

5 why does income elasticity of demand matter

A

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
Q

5 what is positive income elasticity

A

for normal goods, increased income means increased quantity demanded

74
Q

5 what is positive income elasticity

A

for inferior goods, increased income means decreased quantity demanded

75
Q

5 what is less than one income elasticity

A

inelastic, percentage change in quantity demanded is less than the percentage change in income

76
Q

5 what is more than one income elasticity

A

elastic, percentage change in quantity demanded is more than percentage change in income

Business A Level (15 decks)

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