Marketing Flashcards
What is market research ?
Market research is the process of systematically gathering data from consumers, which can be used to influence business decisions
What is the purpose of market research ?
How do you identify and understand the future needs and wants of a customer ?
Market research can identify customer needs before competitors do so, allowing a business to benefit from first mover advantage
As customer needs can change rapidly, market research can help a business avoid stocking goods that are no longer in demand
How do you recognise potential gaps in the market ?
Detailed market research can identify areas of the market in which customers’ needs are not yet being fully met
Appropriate products can then be developed which precisely meet these needs, for which customers may be willing to pay a premium price
How do you reduce risk when launching new products or entering new markets ?
Careful market research can clarify the features of products customers desire, the price they are willing to pay, how they respond to promotion activity and appropriate ways to distribute products
This is likely to limit marketing mistakes, improve budget decisions and improve the chances of a successful product launch or entry into a new market
How do you investigate the potential strengths and weaknesses of competitors ?
Understanding the product range, promotional methods and pricing strategies used by rivals, as well as the ways in which they interact with customers, can help a business make their own products stand out
What is primary research ?
Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews etc
This research gathers information which is new and does not already exist in any format
The most commonly used methods of primary market research include the use of surveys, interviews based on questionnaires, observation, focus groups and test marketing
Why do businesses carry out primary research ?
Businesses usually carry out primary research with a sample of the target market in which they are interested
A sample is a group of respondents that reflects the characteristics of the target market as a whole
The larger the sample size, the more likely it is that research results will reflect the views of the target market as a whole
A business will often use more than one method of primary research in order to build up a reliable understanding of the market
The data can then be analysed and used to make data-led judgements such as how much to charge for a new product and where to sell it
Explain the methods of primary research .
What are the advantages and disadvantages of primary market research.
What is secondary research ?
Secondary research involves the collection, compilation, and analysis of data that already exists
What are some secondary sources of research ?
What are advantages and disadvantages of secondary source research ?
What is market research data ?
can be quantitative or qualitative
Both forms are useful and any data analysis should ideally include a combination of the two
What is Quantitative data?
is based on numbers and could include financial reports (e.g. sales, costs), market data (e.g. markets share) or summaries of data gained from primary research (e.g. on a scale of 1-10 rate our customer service)
What are the Limitations of Quantitative & Qualitative Research Data?
What are the benefits of the use of Social Media to Collect Market Research Data?
The reliability and accuracy of market research depend upon which factors ?
