Market Research And Segmentation Flashcards
What is market segmentation?
Splitting up a businesses’ target market into groups of who it wants to sell to
What are some ways of segmenting a market?
- Location
- Demographics
- Customer behaviour
- Customer lifestyle
- Customer income
Difference between market research and marketing?
- Market research is identifying what customers want
- Marketing is satisfying what customers want
Insights provided by effective market research?
- Market
- Customers
- Competition
- Market segments
- Also helps to inform business decisions and reduce risk of failure
What is primary research?
Research conducted by business, sureveys/observations
Pros and cons of primary research?
Pros
- Private
- Directly focused to research objectives
- Detailed insights
Cons
- Time consuming and costly
- Risk of survey bias
- Sampling may not be representative of whole population
What is secondary research?
Research already done by someone else, eg. Competitor data or gov’t statistics
Pros and cons of secondary research?
Pros
- Free and easy to obtain
- Good source of market insights
Cons
- Can quickly become out of date
- Not tailored to business
- Specialist reports often expensive
What is market mapping?
Maps of quality and price on an x and y axis
How is market mapping useful?
Allows a business to spot gaps in market and understand competitors
What is a Monopoly?
Only one business selling a certain product
What is an oligopoly?
Just a few major businesses selling a certain product
What is the marketing mix (4 Ps)?
- Price
- Product
- Promotion
- Place
How will quality and price be in a monopoly
High price and low quality as there is no incentive to do better
How will quality and price be in an open market?
High quality and low price, otherwise they’ll have a lack of customers
