Market Research Flashcards
What is the Target Market?
The target market is who the product / service is aimed at
How does Target Market help business segmentation ?
It helps to group the information in one e.g. people of one age into one and etc.
What is Market Research?
Its how a business collects info on weather they product/service is bought or not
How are the 4P’s involved in marketing ?
The 4P’s help a business to choose their marketing strategy.
Why is Market Research important ?
Tells a business weather there is demand for their product and avoids unnecessary investment.
What are the 2 methods of research ?
- Primary research
- Secondary research
What is Primary research ?
Collecting information that is new
What is Primary research know as ?
‘field’ research
What is Secondary research ?
looking at information collected by another organisation
What is secondary research known as ?
‘Desk’ research
Which methods are used for primary research?
- Questionnaires
- Interviews
- Focus group
- Trials
What are the advantages of using questionnaires ?
- cheaper than interviews
- can easily target particular audience
What are the disadvantages of questionnaires?
- Difficult to predict how many people
completed - people filling the form may not understand the questions being asked
What are the advantages of Interviews ?
- questions can be explained if there was a
misunderstanding - easy to target customers
What are the disadvantages of Interviews ?
- expensive because interview is paid
- Not everyone like interviews
What are the advantages of Trials ?
- a good way to see if the product is what
people want - saves money as they are trying it out and
not producing it straight away which could
be more costly - reduces risks of producing large quantities
What are the disadvantages of Trials ?
Costly to set up since the area chosen should represent the total target market
What are the advantages of Focus groups ?
- The data from the focus group is usually
accurate since the people are representing
the target market
What are the disadvantages of Focus groups ?
- it will only be a small group
- it is usually costly to carry out
What is focus group ?
They are a group representing the target market that test out the product and give opinion on it or given information on product and asked questions about it.
What are the secondary methods of research ?
- Census data
- data from newspaper and magazines
- Data from websites
- Internal data
What is a UK Census data?
A record of everyone in the UK that questions the number of people in the family, income and etc. It is done every 10 year.
What is Internal data ?
It is past sales figures, profits and comments from customers that is kept as data on computers
What are the advantages of Census data ?
- Information comes from a lot of people
- the data is already collected and analysed
so it reduces the cost of the business
