Market research and Market segmentation Flashcards
What are the four purposes of market research?
To understand customer needs, to identify gaps in the market, to reduce risk, to inform business decisions
Give at least two advantages of primary research
Specific to the business, up to date
Give at least two advantages of secondary research
Can be collected quickly, cheaper
What is the main purpose of a market map?
To identify gaps in the market
Give at least two advantages of quantitative data
Faster to analyse, easy to present the data visually on graphs
Name three secondary research sources
Internet, market reports, government, reports
Give at least two disadvantages of primary research
Time consuming, expensive to collect
Give one advantage of segmentation
Make products for a specific group of customers
What are the two main methods of market research?
Primary and secondary
Give at least two disadvantages of secondary research
Not as specific to the business, may be out of date, competitors may have access to the data
Why is it important that market research is reliable?
Products may not meet customer needs –> sales fall –> business failure?
What is quantitative data?
Data collected that is numeric and easy to analyse
Give one disadvantage of quantitative data
It doesn’t allow detailed opinions
What is qualitative data?
Data collected that is based around opinions and cannot be measured numerically
Give one disadvantage of qualitative data
Expensive and time consuming to gather and analyse