Identifying What Customers Want

Question 1

What does market research involve?

Answer 1

It involves gathering information about target markets, competitors and market trends, so that the business can make the right decisions.

Question 2

Target market

Answer 2

Market research helps a business find out about its target markets, including
Gender
Income
Ethnic, cultural & religious background
Age
Education
Consumer behaviour
Occupation

Question 3

How do businesses find out about what their competitors are doing or might do?

Answer 3

Through market research, like

Market research on competitors includes:

1.Competitor Identification: Finding direct and indirect competitors.
2.Market Positioning: Analyzing competitors’ unique selling propositions (USPs) and branding.
3.Product Analysis: Evaluating product quality, features, pricing, and customer satisfaction.
4.Marketing Strategies: Investigating advertising channels, promotions, and social media presence.
5.Customer Base: Analyzing target audiences, demographics, and preferences.
6.Sales Performance: Assessing sales volumes, market share, and growth trends.
7.Strengths and Weaknesses: Identifying competitors’ strengths and weaknesses for differentiation.
8.Customer Feedback: Reviewing customer reviews to gauge public perception.
9.Pricing Strategies: Understanding competitors’ pricing and promotional strategies.

This information helps businesses compete effectively and meet customer needs.

Example: Large supermarket chains such as Tesco and Asda regularly monitor their competitors® prices, and then offer customers money off their groceries if the price is cheaper elsewhere.

Competitor research feeds into a business’s strategy.

Question 4

Identifying what customers want - market trends

Answer 4

Identifying market trends and how they are going to change over time is an important aspect of marketing strategy which enables businesses to plan for the future.

Question 5

Identifying what customers want - market structure

Answer 5

Market structure considers the organisation and characteristics of a market. These affect the amount of competition and the potential pricing options.

Question 6

Identifying what customers want - market size

Answer 6

Market size refers to the value of the market in terms of sales and the number of competitors active in that market.