3.3.2 Understanding markets and customers Flashcards
1
Q
The Importance of Marketing allows a business to…
A
- Understand the market it is operating in
- Understand what customers want
- Understand the relative strengths and weaknesses in comparison to competitors
- Understand the nature of pricing for its products
- Build a strong brand
- Build relationships with customers
2
Q
Marketing Objectives
A
- Market and sales growth:
- measured in volume (units) or value (pounds) - Market share:
- the amount a business sells as a % of the whole market
- higher means more influence and power - Brand image:
- building brand characteristics
- good reputation attract and reassures customers - Brand loyalty:
- businesses need regular customers to succeed
- building relationships with customers
3
Q
The Market Research Process
A
- Define the problem
- Develop the research problem
- Collect relevant information
- Develop findings
- Take marketing actions
4
Q
Types of Primary Market Research
A
- Focus groups
- Interview
- Survey
- Mystery shoppers
- Product trial testing
5
Q
Type of Secondary Market Research
A
- Market reports
- Trade & industry associations
- Sales transactions
- Big data
- Analytics
6
Q
Primary Market Research Benefits
A
- Specific to the needs of the business
- More up to date and reliable
- Gives more opportunity for 2 way communication and follow up questions
- Better if collecting qualitative data
7
Q
Primary Market Research Drawbacks
A
- Can be more time-consuming and expensive
- Difficult to conduct a large sample size
8
Q
Secondary Market Research Benefits
A
- Easier accessible and a good starting point
- Fast and less time-consuming
- Better if collecting quantitative data
9
Q
Secondary Market Research Drawbacks
A
- Some data can be free but detailed reports can be expensive
- Not always up to data or specific to business needs
10
Q
Market Mapping
A
- Used to understand how products/businesses are viewed relative to competitors
- 2 relevant characteristics
- Helps businesses to know whether there is a ‘gap’ in the market
11
Q
Sampling
A
Selecting a representative group of people from the target population
- Quicker and easier than trying to collect research
- The bigger the sample the more representative it will
12
Q
Confidence Level
A
An indication of how accurate the research finding are
13
Q
Confidence Interval
A
The possible range of outcomes for given confidence
14
Q
Extrapolation
A
- Predicting future trends
- Reliable when conditions remain the same
15
Q
Price Elasticity of Demand
A
The effect of the change in price on the quantity demanded
