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Not as specific to the business, may be out of date, competitors may have access to the data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
Name the four customer needs
Price, quality, choice, convenience
How can social media be used in market research?
Quick way of sending out questionnaires, the business can see how many clicks they get
What’s the difference between primary and secondary research?
Primary is data collected first-hand, secondary is data that is already collected
What are the five methods of segmentation?
Location, demographics, lifestyle, income and age
Why is it important to meet customer needs? (Two reasons)
Generate sales, business survival
Name the two types of data that can be collected
Qualitative and quantitative
Give one advantage of qualitative data
Allows more detailed opinions to be given
Give one advantage of qualitative data
Get detailed customer opinions
What is market segmentation?
Dividing a market into groups
