Market research and Market segmentation Flashcards

1
Q

What are the four purposes of market research?


A

To understand customer needs, to identify gaps in the market, to reduce risk, to inform business decisions

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2
Q

Give at least two advantages of primary research

A

Specific to the business, up to date

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3
Q

Give at least two advantages of secondary research

A

Can be collected quickly, cheaper

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4
Q

What is the main purpose of a market map?

A

To identify gaps in the market

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5
Q

Give at least two advantages of quantitative data

A

Faster to analyse, easy to present the data visually on graphs

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6
Q

Name three secondary research sources

A

Internet, market reports, government, reports

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7
Q

Give at least two disadvantages of primary research

A

Time consuming, expensive to collect

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8
Q

Give one advantage of segmentation


A

Make products for a specific group of customers

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9
Q

What are the two main methods of market research?

A

Primary and secondary

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10
Q

Give at least two disadvantages of secondary research

A

Not as specific to the business, may be out of date, competitors may have access to the data

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11
Q

Why is it important that market research is reliable?

A

Products may not meet customer needs –> sales fall –> business failure?

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12
Q

What is quantitative data?

A

Data collected that is numeric and easy to analyse

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13
Q

Give one disadvantage of quantitative data

A

It doesn’t allow detailed opinions

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14
Q

What is qualitative data?


A

Data collected that is based around opinions and cannot be measured numerically

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15
Q

Give one disadvantage of qualitative data

A

Expensive and time consuming to gather and analyse

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16
Q

Name the four customer needs

A

Price, quality, choice, convenience

17
Q

How can social media be used in market research?

A

Quick way of sending out questionnaires, the business can see how many clicks they get

18
Q

What’s the difference between primary and secondary research?

A

Primary is data collected first-hand, secondary is data that is already collected

19
Q

What are the five methods of segmentation?


A

Location, demographics, lifestyle, income and age

20
Q

Why is it important to meet customer needs? (Two reasons)

A

Generate sales, business survival

21
Q

Name the two types of data that can be collected

A

Qualitative and quantitative

22
Q

Give one advantage of qualitative data

A

Allows more detailed opinions to be given

23
Q

Give one advantage of qualitative data

A

Get detailed customer opinions

24
Q

What is market segmentation?

A

Dividing a market into groups

25
Q

Give one disadvantage of segmentation


A

Isolates groups that are not targeted

26
Q

Name the four primary research methods

A

Survey, questionnaire, focus group, observation