Business Flashcards
Outline 3 reasons why an organisation would target specific customers
- Less time consuming to carry out market research
- Product can be designed to meet specific needs of target market
- Advertising and promotions can be designed for target market
- Price can be more accurately set to reflect the particular target market
- ensures a suitable place is chosen where target market will buy product
Define Field research
This Involves finding out information first hand (Primary Information) directly from the public/consumer
Outline the advantages of field research
- Information is gathered specific to your purpose
- Information is up-to-date
Outline the disadvantages of field research
It is more expensive to gather compared to desk research
- It is more time consuming to gather compared to desk research
- People may not always give truthful answers in response to questions
Define desk research
This uses secondary information which has already been gathered for another purpose, either from inside or outside the business
Outline the advantages of desk research
- It is cheaper to access existing information rather than having to collect information from scratch
- It is easier to obtain by looking in a newspaper or on a website as the research has already been carried
- Decisions can be made quickly as the information already exists
outline the disadvantages of desk research
- Information may be out of date as it may have been collected a long time ago and so may not be relevant
- Information is available to competitors making it harder to find a competitive edge
- The information may not be as useful as the research has been carried out for a different purpose
Describe a personal interview
A face-to-face discussion between a trained interviewer and a respondent which can take place in the street or at home
Describe a telephone survey
People are contacted by telephone and asked to answer a range of questions
Describe a postal survey
A list of questions is sent to people through the post. They will complete the survey and send it back to the business
Describe an online survey
People answer a number of questions that are displayed on a website. Respondents may have to click an appropriate answer and/or type in comments
Describe a focus group
A selected group of people is gathered to take part in a discussion about a product. their opinions are obtained on the design, colour, shape etc and what they like and dislike about the product
Describe the social networking sites
Businesses can set up social media accounts (eg Facebook, twitter) in order to interact with customers around the world to find out their reactions and opinions on different issues
Outline 1 advantage and disadvantage of a Personal Interview
+ Allows two-way communication so any points can be clarified
+ The researcher can encourage the respondent to answer certain questions
+ Body language and facial expression can be observed
- It is a costly method of research as interviewers need to be trained
- It’s very time consuming as only one respondent can be interviewed at any one time
Outline 1 advantage and disadvantage of a telephone survey
+ Information is obtained immediately
+ Any points can be clarified by the researcher
- Many people will not want to speak to a researcher over the phone and so many calls will need to get a large number of responses
Outline 1 advantage and disadvantage of a postal survey
+ Cost effective way of sending a survey to a large number of people over a large geographic area
+ people can complete their survey at their own pace when it suits them
- The response rate may be very low
- There is no opportunity for the respondent to clarify anything they don’t understand
Outline 1 advantage and disadvantage of an online survey
+ A link to website can be sent to a large number of people all over the world
+ Computer software can automatically collate and display results in real time
- Relies on respondents having access to the internet
- No personal contact with business to clarify any misunderstandings
Outline 1 advantage and disadvantage of a focus group
+ Opinions, feeling and attitudes can be gained
+ follow up questions can be asked ad points can be clarified
- The sample of people used may not represent the views of the whole population
- Financial incentives may be needed to encourage people to take part.
Outline 1 advantage and disadvantage of a Social networking website
+ two-way communication can occur between the business and the customer
+ Large number of people can be reached
+ Questions can be answered very quickly
- Customers may not want to join social networking websites
- Information is not usually private so can be viewed by anyone
Outline the first 3 stages of product development
Generate the idea - Coming up with ideas following market research
Analyse the idea - considering the different options and picking the best one
Produce a prototype - making the model/early version of your product
Outline the last 3 stages of product development
Test the product - Carry out safety tests and also carry out marketing research with customers for feedback
Alter the product - make necessary changes following testing
Produce the product - start production of the product
Describe a brand
A Brand is a logo, name or symbol that is given to a product that makes it instantly recognisable
Outline the advantages of branding
- Higher prices can be charged for branded products
- Brand generate “Brand loyalty” and mean greater sales
- Brand are perceived to be higher of quality
- Brands are instantly recognisable
Brands reduce the need for advertising - Brands make it easier for a business to launch a new product under the same brand name as they are perceived to be of a high standard and reliable
Outline the disadvantages of branding
- If a product within the brand develops a poor reputation it can damage the whole brand name
- Establishing a brand is time consuming, lengthy and expensive process
Identify the 4 stages of product life cycle
Introduction
Growth
Maturity
Decline
Describe the Introduction stage of the product lifestyle
- The product is launched onto the market
- The product is heavily advertised to inform customers
- Sales will be low at this stage with little to no profit
Describe the Growth stage of the product lifestyle
- The product is becoming more well-known and popular
- Advertising continues but at a lower rate than before
- Sales are rapidly increasing. profit is beginning to be made
Describe the Maturity stage of the product lifestyle
- Sales and profits have reached their peak.
- The product is well establishes on the market
- Advertising is used only as a reminder
- New models/variations may be introduced to encourage long term sales
Describe the Decline stage of the product lifestyle
