chapter 16 market analysis Flashcards
market research
systematic gathering recording and analysing of facts about some element of the marketing mix in order to identify and satisfy customers’ needs in an informed and effective manner
reasons for market research summarised
1 collect data about target market 2 collect data about competitors 3 improve product before launching 4 improve marketing mix 5 predict future sales
reasons for market research in full
1 collect data about target market size if market composition of market 2 collect data about competitors selling price range of products branding 3 improve product before launching feedback focus group changes before launching 4 improve marketing mix SP may be too high insight into promotion techniques to use 5 predict future sales (BE analysis)
field research
going into the marketplace to gather first hand or new business information
primary research is carried out by making direct contact with customers or potential customers
surveys
interviews/questionnaires of a sample of the target market. get feedback, habits, attitudes, preferences, data can be qualitative(opinions), or quantitative(statistics)
Survey Monkey
observation
watch consumers interact/behave while shopping or using product (unbiased)
focus group
invite potential customers, ask questions and let them chat about their likes and dislikes
customer feedback
use comments given to salespeople or machines (lidl rate your experience exiting)
personal interviews
invite customers to talk about products face to face
field research evaluation
expensive time consuming can be biased provides specific information on the behaviour of the target market up to date info
desk research
involves accessing information that has already been gathered
secondary research
can be both internal and external
internet
websites, forums, and social media trends provide free data/ information
CSO
central statistics office
provides info on market sizes, gender, age, and income levels
reports
trade associations and interest groups publish research and annual reports (bord bia report on consumer lifestyles)
evaluation of desk research
quick easy out of date not relevant/specific to you sponsored by a company- biased
market segmentation
involves dividing up the market into clearly identifiable sections which have common characteristics
it allows a firm to identify who their target market is
demographic
breaks market into groups based on age, gender, family size, income, occupation
Freddo bars younger children
behavioural
targets people’s reaction to events, times of year, situations (eg st patrick’s day)
chocolate bars cheaper in multipacks
geographic
breaks groups based on location
coca cola more high fructose corn syrup in the USA
psychological
targets people’s reaction to products based on social demographic, lifestyle, personality type
Insomnia - 100% fair-trade coffee- environmentally friendly customers
benefits of market segmentation
1 adapt the product’s design to fit diff customers
eg coke orange vanilla trial in Canada 2019
2 improve advertising decisions
consumers habits- social media and TV shows
3 adjust promotional techniques
helps with short term gimmicks
music festival tickets
4 increase profit levels
charge different prices to different segments eg tescos finest
5 create multiple markets
adjust the good to diff consumers
eg nike football boots get more expensive
niche market
small specialised section of a larger market
only a few suppliers
consumers willing to pay higher prices
wedding dresses
niche lower sales
lower volumes, lower potential profits/ growth eg general shoe manufacturer compared to wedding shoes
niche, foothold in new markets
used to establish a brand before expanding a full product range
eg Amazon sold electronics only
niche higher costs
no economies of scale, will need higher quality/ USP for a higher price
eg cost of tailored shit- ready made M&S
niche less start up capital
scale of production is smaller: option to expand later eg starting a small jam business and mass production equipment
niche less competition
can sell to a small subset of a market with no direct competition
marketing plan
a strategy to identify customers’ needs
bringing together the resources required to satisfy those needs in such a way that a profit is made
marketing concept
customer is the most important person
the idea is that a firm should look at the needs of their customers first and make marketing decisions based on those needs to better satisfy their requirements
role of marketing plan
1 analyse the market identify segments spot opportunities target its marketing 2 select and research target market make more informed decisions time isn’t wasted on wrong segment 3 choose a marketing mix
