Market Research Flashcards
Benefits of market research
Helps a business to make informed decisions so that the product launches are a success
Reduces the risk of an unsuccessful product launch or development which can be very costly
Customers feel valued as their opinions are taken into consideration
Market segments
Age
Gender
Location
Income
Benefits of target marketing
Prices are set to reflect the target market
Product is sold in the most appropriate place
Products can be tailored to the requirements of the customer
Product development
Market research is carried out to find out what the consumer wants
Ideas for the product are generated based on market research information
A model for the product can be created which is called prototype, prototype just lets people see what the product would look like and how it would work
Introduction stage
The product is launched onto the market but normally sales are low due to competition and lack of awareness from the public
Growth stage
Sales rose sharply as awareness increases
This is the first stage where the company starts making profit
Maturity stage
Sales reach their peak then begin to slow
Competitors increased and so prices drop
Product is at its most profitable
Decline stage
Sales begin to fall and the product begins a slow death as trend change and technology develops
Eventually the product is withdrawn from the market
Branding
A brand is a product or service which is identified by a specific name or logo
The name or logo makes the product instantly recognisable
Product life cycle
Introduction , growth, maturity and decline
Place- business location
Businesses have to decided where to locate, this just means location of shop, selling online only etc
A number of things must be considered when making this decision
Desk research methods
Oral
Graphical
Written
Field research methods
Personal interview
Questionnaires-surveys
Hall tests
Place- distribution methods
Road Train Aircraft Boat Promotion
Factors affecting price
How much the customer is willing to pay
The quality of the product
Costs of producing the product- profit only happens when costs are covered
Competitors prices
Stage of the product life cycle
Government restrictions
