Marketing Flashcards
What is marketing?
Finding out the needs of customers and then meeting these needs profitably
What are the three main purposes of marketing?
Identifying and understanding customers
Informing customers
Increasing sales
What is market research?
How businesses collect data on whether or not their product or services will be bought
What is the target market?
A group of customers to whom a business aims to sell its products
What is the purpose of market research?
To identify and understand customer needs
What is primary research? (Field research)
Data that is collected first hand, often in the form of questionnaires, interviews and focus groups
What are the advantages of questionnaires?
Cheap to carry out
Easy to target customers
What are the disadvantages of questionnaires?
People may not understand the questions
Not all customers will complete the questions
What are the advantages of interviews?
The questions can be explained
It’s easy to target certain types of consumers
What are the disadvantages of interviews?
It’s an expensive method
Not everybody likes being interviewed
What are the advantages of trialling?
A good way to see if the product is what people want
Reduces the risk involved in producing large quantities
What are the disadvantages of trialling?
Trials are costly to set up in the short term
The area chosen may not fully reflect the target market which may lead to unreliable conclusions
State the advantages of focus groups
Focus groups are chosen to represent the target market for a business, so the data from them is usually very accurate
The ability to ask further questions means that more in depth responses are gained
State the disadvantages of focus groups
It will only be a small group
Usually costly to carry out
What is secondary research (desk research)?
Refers to data that already exists
State the advantages of websites
A quick way to obtain data
A cheap way to obtain data (compared to primary)
State the disadvantages of websites
The data may not be up-to-date
The data may not match the purpose of the market research required
State the advantages to a business of using Census data
Information comes from a lot of people
It’s already collected and analysed, reducing the cost to business
State the disadvantages of a business using census data
Information has not been collected to meet the specific needs of the business
State the advantages to a business using data from newspapers and magazines
Such information is up to date, cheap and is a good source of ideas
State the disadvantages to a business using data from newspapers and magazines
Information will be general and not specific to the business
State the advantages of internal data
Cheap to collect, readily available and is specific to the business
State the disadvantages of internal data
Data is historical - it looks at what has happened, not what will happen
Define qualitative data
Data based on the opinions of those being asked
Define quantitative data
Data collected that is based on facts or numbers; it is usually easier to analyse than qualitative data
Give an advantage and disadvantage of qualitative data
It helps a business to understand what customers are thinking and what they want
Information may only be provided by a limited number of people
Give an advantage and disadvantage of quantitative data
Easy to analyse - it can be gathered from a lot of people
Limits how much people can say about what they like or dislike
