Business 1.2 revision Flashcards
What are the four main customer needs?
Choice Quality Convenience Price
What are the four main purposes of market research?
Identify gaps in the market, reduce risk, identify and understand customer needs, inform business decisions
What is the definition of primary market research?
Obtaining data first hand to match the specific needs of a business
Methods:
Survey, questionnaire, interviews, focus groups, observations
What is the definition of Secondary market research?
Using data that already exists and has been produced by a different purpose
Methods:
Internet research, competitor websites, printing press, market reports, government reports, Cencus
What is the definition of Quantitative data?
The numerical data that can be statistically analysed and is collected through closed questions found within questionnaires or surveys
What is the definition of Qualitative data?
Opinions, feelings and attitudes from a small number of people through market research such as focus groups or interviews; the results can not be easily converted into numerical data
One advantage and disadvantage of primary research?
Advantages:
Bespoke to the needs of a business
up to date
competitive advantage
Disadvantages:
Time consuming
expensive to carry out
interview bias
One advantage and disadvantage of secondary research?
Advantages:
Available immediately
free or very cheap
Disadvantages:
Could be out of date
may not be accurate or reliable
No competitive advantage
What is the definition of Market segmentation?
Dividing customers within a market into smaller groups with common needs or wants, then finding a product or service that fulfils those needs or wants
What are a few factors that you could segment in a market?
Location, income, lifestyle, age, other demographic factors e.g gender, age religion
What are some benefits of effective marker segmentation?
Products Bespoke to customer needs and wants
Allows businesses to grow
helps make the marketing mix more effective
What is the definition of target market?
The group of people the product is aimed at
Advantages and disadvantages of selling to a niche market
Advantages:
Reduced competition
higher profit margins
strong customer loyalty
Disadvantages:
limited customer base
limited growth potential
larger companies might compete
Advantages and Disadvantages of selling to a mass market
Advantages:
More customers
more revenue
economies of scale (reduces unit cost of materials)
brand recognition
Disadvantages:
More competitors
lower customer loyalty
Customers more price Sensative
What is market mapping?
A grid that shows the range of possible positions for two features a product in a market such as low-high quality and price
(then placed on a grid and reveal gaps in the market
What is the definition of competitive advantage
An advantage gained over Competitors which enables the business to perform better than their competitors
(wider product range, better customer service, higher quality, stronger brand image, better product features)
What is a SWOT analysis
A SWOT analysis is used to identify an organisations strengths, weaknesses, opportunities and threats in relation to its competitors
What is the definition of competitive environment
the strength of competition between companies in the same market
