Marketing Flashcards
What is market segmentation?
Market segmentation is the process of dividing potential customers into different groups based on characteristics like age, gender, income and much more.
Why do businesses uses market segmentation?
Choosing market mix
Choosing promotion
Market mapping (a process to identify a gap in the market by looking at what competitors offer).
What variables can customers be segmented on?
Income
Age
Location
Gender
What is market research?
Market research is the process of collecting and processing information about the market that a business operates in.
What does market research gather information on?
Demand
Competition
Target market
What does qualitative research generally collect?
Information about opinions and views rather than things that can be qualified.
What does quantitative research collect?
Factual information on things that can be quantified and recorded easily.
What is primary market research?
Market research that is done by a firm for its own use. A business can tailor primary market research to their own exact needs/
State some examples of primary research:
Questionnaires, surveys or interviews
What is a key benefit of primary research?
It is tailored exactly to the needs of the business.
What is secondary market research?
Secondary market research happens when firms collect information on research that has been performed by other organisations or people.
