3.3.2- Understanding markets and customers Flashcards
3.3 Marketing management
What are the main reasons for market research?
- It helps businesses spot opportunities: businesses research customers buying patterns to predict what customers will buy in the future. Can spot declining and growing markets
- Helps decide what to do next: can do research before launching a product or an advertising campaign
- It helps see if their plan is working: can have a keen eye on sales figure
What is quantitative data?
Data that produces numerical statistics
What is qualitative data?
Data that looks into feelings and motivations of consumers
What is primary research?
Where a business gathers new data by themselves
Whats an advantage of primary researcj?
- Up to date
- More specific to purpose
What is a disadvanatage or primary research?
- Can be labour intensive
- Time consuming
- Expensive
What is secondary research?
Research done by analysing already available data
What is an advantage of secondary research?
- Easy
- Quick
- Cheap
What is a disadvantage of seconday research?
- Can contain errors
- Can be out of date
- May not be the data the business is looking for
What is a representative sample?
A sample representing the market, which can help keep costs down and save time and resources
What are the three types of sample? Explain them.
- Random sample: Names picked randomly from a list
- Stratified sample: The population is separated into groups and people are selected randomly from each group
- Quota sample: People are picked who fit into a category
What is extrapolation?
A statistical technique that predicts future trends based on existing data
What are the advantages of extrapolation?
Useful in stable environments. E.g. size of the market stays the same
What are the disadvantages of extrapolation?
Sudden unexpected events can make extrapolation from past data useless.
What is correlation?
Is a measure of how closely two variables are related
