Marketing Flashcards
Exchange
When someone gives up something in return for something else e.g. a business exchanges a
product for money
Need
Something that needs to be fulfilled for us to survive
Want
What we would like to satisfy our needs
Customer
Someone who buys a product from a business
Consumer
Someone who uses goods and services produced by businesses
Sales volume
Measures the number of items sold
Sales value
Measures the revenue generated
Segmentation
Occurs when a market is divided into different groups of needs and want (Gender, Age, Income, Location)
Market research
The process of gathering, analysing and processing data relevant to marketing decisions. Collects information about demand, competition and target market
Market segment
A group of similar needs within the overall market
Primary market research
(Also called ‘field research’), which involves gathering information for the first time, for example using questionnaires to conduct a survey of potential customers
Secondary market research
(Also called ‘desk research’), which involves using data that already exists, for example, using information in a newspaper or published on a website
Market share
The percentage of sales in a particular market recorded by a business
Qualitative market research
Collecting information about potential customers’ opinions and preferences about the attributes/characteristics/properties of a product; open questions allow respondents to express their own views by not limiting their responses
Quantitative market research
Using sampling techniques such as surveys where the findings are expressed numerically; closed questions allow a limited choice of responses and are easy to turn into statistics for analysis
Demand
The quantity of a particular product that will be bought at particular price over a specific time
Competition
The rivalry between businesses looking to sell their goods/services in the same market
Target market
The particular group of customers to which a business aims to sell its product; a particular market segment
Value of sales(Formula)
Selling price per unit × Number of units sold
Market growth(Formula)
(Change in the size of the market over a period ÷ Original size of the market) × 100
Market growth(Formula)
(Change in the size of the market over a period ÷ Original size of the market) × 100
Market share(Formula)
(Sales of one product OR brand OR business ÷ Total sales in the market) × 100
Questionnaire
A list of questions that is put to a member of the target population; either presented orally or in writing (P)
Surveys
Asks questions to get opinions and learn about customers’ experiences with a product or service (P)
Focus groups
A focus group is a group interview. It can take place in person or online. In a focus group, people are asked questions or given scenarios and asked for their opinions about a product or service (P)
Observations
watching customers to find out their reactions to certain products or services. For example, this could involve watching someone try a drink for the first time or monitoring which products a customer notices first when they go into a shop. (P)
Advantages of Primary Research
Advantages:
- Specific to that business
- Provides much more detailed information
- Relevant and up-to-date
- Can gather a mixture of quantitative and qualitative data
Disadvantages of Primary Research
Disadvantages:
- Time consuming
- Expensive
- Difficult to collect these type of data
Internet research
Data taken from competitors’ websites, newspaper articles and social media. This provides a business with information relating to its industry and the types of products and services other businesses offer. (S)
Market reports
They may give specific information about an industry as a whole. This could help a business decide which customers to target.
Government reports
Consist of general information that is not usually industry specific but can still be useful for a business. A business may use this information to decide what level of pay to offer potential employees
Advantages of Secondary Research
Advantages:
- Quick and easy to gather
- Provides Industry-specific information
- Often easy to analyse
Disadvantages of Secondary Research
Disadvantages:
- Not specific to that business
- Could be out of date
- May be biased or inaccurate
