chapter 16 market analysis

Question 1

market research

Answer 1

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

Question 2

reasons for market research summarised

Answer 2

1 collect data about target market
2 collect data about competitors
3 improve product before launching
4 improve marketing mix
5 predict future sales

Question 3

reasons for market research in full

Answer 3

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)

Question 4

field research

Answer 4

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

Question 5

surveys

Answer 5

interviews/questionnaires of a sample of the target market. get feedback, habits, attitudes, preferences, data can be qualitative(opinions), or quantitative(statistics)

Survey Monkey

Question 6

observation

Answer 6

watch consumers interact/behave while shopping or using product (unbiased)

Question 7

focus group

Answer 7

invite potential customers, ask questions and let them chat about their likes and dislikes

Question 8

customer feedback

Answer 8

use comments given to salespeople or machines (lidl rate your experience exiting)

Question 9

personal interviews

Answer 9

invite customers to talk about products face to face

Question 10

field research evaluation

Answer 10

expensive
time consuming
can be biased
provides specific information on the behaviour of the target market
up to date info

Question 11

desk research

Answer 11

involves accessing information that has already been gathered
secondary research
can be both internal and external

Question 12

internet

Answer 12

websites, forums, and social media trends provide free data/ information

Question 13

CSO

Answer 13

central statistics office

provides info on market sizes, gender, age, and income levels

Question 14

reports

Answer 14

trade associations and interest groups publish research and annual reports (bord bia report on consumer lifestyles)

Question 15

evaluation of desk research

Answer 15

quick
easy
out of date
not relevant/specific to you
sponsored by a company- biased

Question 16

market segmentation

Answer 16

involves dividing up the market into clearly identifiable sections which have common characteristics
it allows a firm to identify who their target market is

Question 17

demographic

Answer 17

breaks market into groups based on age, gender, family size, income, occupation
Freddo bars younger children

Question 18

behavioural

Answer 18

targets people’s reaction to events, times of year, situations (eg st patrick’s day)
chocolate bars cheaper in multipacks

Question 19

geographic

Answer 19

breaks groups based on location

coca cola more high fructose corn syrup in the USA

Question 20

psychological

Answer 20

targets people’s reaction to products based on social demographic, lifestyle, personality type
Insomnia - 100% fair-trade coffee- environmentally friendly customers

Question 21

benefits of market segmentation

Answer 21

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

Question 22

niche market

Answer 22

small specialised section of a larger market
only a few suppliers
consumers willing to pay higher prices
wedding dresses

Question 23

niche lower sales

Answer 23

lower volumes, lower potential profits/ growth eg general shoe manufacturer compared to wedding shoes

Question 24

niche, foothold in new markets

Answer 24

used to establish a brand before expanding a full product range
eg Amazon sold electronics only

Question 25

niche higher costs

Answer 25

no economies of scale, will need higher quality/ USP for a higher price
eg cost of tailored shit- ready made M&S

Question 26

niche less start up capital

Answer 26

scale of production is smaller: option to expand later eg starting a small jam business and mass production equipment

Question 27

niche less competition

Answer 27

can sell to a small subset of a market with no direct competition

Question 28

marketing plan

Answer 28

a strategy to identify customers’ needs

bringing together the resources required to satisfy those needs in such a way that a profit is made

Question 29

marketing concept

Answer 29

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

Question 30

role of marketing plan

Answer 30

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