Intro 5 Flashcards
What is test marketing ?
Selling a new product in a small section of the market in order to assess customer reaction
Test marketing allows ?
To test there product and to make changes before they launch it on a large scale
Observations
Highly trained researchers watch how people or consumer interact and behave under natural conditions
What is observation’s useful for ?
Certain businesses like super markets
What is qualatative data vs quantitative?
Qualatatative- choosing or adapting a method that brings rules in discussion / word from depth of response
Quantative- choosing or adapting a method that brings in satisitics ( quadratics form )
2 reasons why market research may be bias ?
Business may own pre existing opinions
Chosen participants may not give there true opinions
Identify 5 ways a business can differentiate
High quality - superior performance
Exceptional customer service
Unique design
Ethical
Strong brand image
Definition of market mapping
A virtual representation of how current businesses are perceived in the market from customers point of view
Examples of market mapping
Low price vs high price
Basic high quality vs high quality
Necessity v luxury
Advantage of market mapping
Helps to spot a gap in the market which can lead to differentiation
Disadvantage
There might be a gap in the market because customers don’t have needs / wants in that’s areas eg
Low quality high price
What are the 3 main characteristics of entrepreneur
Setting up business
Expanding
Inovate
