MARKETING Flashcards
What is market research?
Research conducted to gather consumer needs and interests
Give two reasons as to why market research may be conducted
1) Find a gap in the market
2) Improve decision making to reduce risk
What are the two different types of research?
Primary - Do it yourself
Secondary - Use existing data
What are the two types of results which can be gained from market research?
Quantitative - Numerical
Qualitative - Worded
How is social media beneficial to market research?
1) Businesses can upload surveys to social media platforms. These are more likely to be completed as they are more convenient.
2) They can examine their followers to understand trends/patterns
What is Qualtitative Data?
Data which is expressed through words
What is quantitative data?
Data which is numerically expressed
What is an advantage of qualitative data?
Provides you with in depth data
What are two disadvantages of qualitative data?
Data may be harder and more time consuming to analyse
It is slower to gather
What are two advantages of qunatitative data?
Easier to gather
Faster to analyse
What is a disadvantage of quantitative data?
Unhelpful if you need to analyse an issue in depth
What is primary research?
Research which you conduct yourself
What is secondary research?
Where you use existing data
What are two advantages of primary data?
You can set questions to tailor your needs and interests
It may provide you with a competitive edge
What are two disadvantages of primary data?
Sometimes time consuming
Sometimes costly
What are two advantages of secondary data?
Usually quick, sometimes instant
Usually cheaper than primary
What are two disadvantages of secondary data?
Competition will have the same access to the data
Research may be out of date
What is market segmentation?
Where businesses split potential consumers up into different categories to tailor their products
What are four examples of market segments?
Gender, age, income and consumer lifestyles
What is an advantage of market segmentation?
It allows businesses to tailor their products to the needs of their customers, building a loyal customer base
What are two disadvantages of market segmentation?
Higher costs
Limited product range
What is market share?
The portion of a market, of a particular entity, which a business controls
What is the formula for market share?
(sales of a product or business/total market sales) x 100
What is market growth?
The portion of the whole market which a company holds
What is the formula for market growth?
(change in size of market over a period of time/original size of market) x 100
What are market leaders?
The company which sells the largest quantity of a particular product