Market Research Flashcards
What is the Market Size?
The number of individuals within the market which are potential buyers or sellers of products. Can also mean the total value of products in the market.
What is the Market Share?
The proportion of total sales within the market that is controlled by the business.
What is segmentation?
When people within a market are divided into different groups.
What does knowing the different market segments allow a business to do?
Allows business to identify their target market.
What is a target market?
The specific group of people that a product is aimed at.
What can a business do after they’ve identified their target market?
Create a marketing strategy aimed at their target market to make sure that their marketing is as effective as possible.
What are the 4 key ways a market may be segmented?
Age
Income
Location
Gender
Why is market research really important?
It helps a business to understand its customers and competitors.
What does Market research result to?
Businesses will be better able to identify their customers’ needs and therefore be more likely to provide products that satisfy those needs and that customers will buy.
Knowing the demand for a product can help the business to…
Increase sales by adjusting their pricing. Can also help them to avoid costly mistakes, such as making too much of a product.
How can gathering information on the products and prices of competitors help?
Can help show how they are different.
This can help a business to improve its strategies to be more competitive.
By understanding their target market the business will be better able to…
produce promotional material that will be effective and products that the target market will buy.
What is a market opportunity?
When a group of customers have a need that isn’t being met.
The type of market research used by a business is likely to depend on things such as…
how big it is
how much money it can afford to spend
how quickly it needs data and how much it needs.
What is Quantitative information?
Anything you can measure or reduce to a number.
What is Qualitative information?
People’s feelings and opinions.
How is Qualitative information different to Quantitative information?
It is more tricky to analyse but allowing customers to voice their opinions gives it a greater depth of information.
What is Primary Research?
Doing your own research.
What is Secondary Research?
Looking at other people’s work.
What are Questionnaires?
Documents with questions that are sent to people.
What are Phone surveys?
Collecting information from people over the phone.
What are Interviews?
Asking questions face to face.
What are Focus Groups?
Where a small group of people discuss their opinions of a product.
What are the advantages of Primary Research?
Provides data that is up to date, relevant and specific to the needs of your business.
What is the disadvantages of Primary Research?
It is expensive and can be time consuming.
What are the advantages of Secondary Research?
Cheaper than primary, data is easily found and instantly available.
What are the disadvantages of Secondary Research?
It’s not always relevant to your needs, it’s not specifically about your products, and it’s often out of date.
