Marketing - Segmentation & Research Flashcards

1
Q

What does market segmentation involve?

A

Putting potential customers into groups based on specific criteria or characteristics

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2
Q

What are the criteria a business can use to segment the market?

A

-Age,
-Gender,
-Income Level,
-Lifestyle/hobby,
-Religion,

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3
Q

Describe the ‘age’ method of segmentation:

A

consumers are divided into groups based on age brackets, e.g. 13-18 or over 55,

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4
Q

Describe the ‘gender’ method of segmentation:

A

consumers are grouped together based on the gender that they identify with as commonly used in the cosmetic and clothing markets

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5
Q

Describe the ‘income level’ method of segmentation:

A

consumers are grouped together based on how much disposable income they have

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6
Q

Describe the ‘lifestyle/hobby’ method of segmentation:

A

consumers who have a particular lifestyle or hobby are grouped together, e.g. vegetarians or gamers

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7
Q

Describe the ‘religion’ method of segmentation:

A

consumers are grouped together based on their religious or cultural beliefs.

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8
Q

What are the benefits of market segmentation?

A

-products or services will be better suited to the target marker’s needs or wants, leading to improved customer satisfaction,
-businesses will choose appropriate pricing that appeals to their target markets, leading to customers spreading the businesses name, causing an increase in image and reputation,
-businesses will sell their products in appropriate places where the target market shops, leading to an increase in sales,
-there is a decreased chance of product failure, leading to the likelihood of a reduction in wasted investment by businesses,

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9
Q

What is field research?

A

Research which involves a business gathering brand new information themselves using methods such as face-to-face interviews and focus groups. This type of research collects primary information.

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10
Q

What are the advantages of field research?

A

-the data collected is brand new and up to date,
-the data is not accessible to competitors,
-the research is tailored to the specific requirements of a business, meaning that the data gathered is highly relevant,

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11
Q

What are the disadvantages of field research?

A

-it can be an expensive type of research compared to desk research,
-it can be a time-consuming process, meaning that decisions cannot be made quickly,

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12
Q

Why would a business used market research?

A

-identifying what the target markets should be for their products or services,
-finding out what the target market’s needs and wants are so as to design products that satisfy them,
-finding out how much the target market would be willing to pay for products so as to set appropriate pricing,
-gathering information about competitors, allowing them to gain competitive advantages,

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13
Q

What is desk research?

A

Research which involves the use of pre-existing data that has been gathered by someone else. This type of research collects secondary information

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14
Q

What are the methods of field research?

A

-personal interview,
-telephone survey,
-postal survey,
-online survey,
-focus group,
-hall test,

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15
Q

Describe the ‘personal interview’ method of field research:

A

the researcher conducts a face-to-face interview with the respondent using a questionnaire containing standardised questions. Personal interviews allow the researcher to clarify questions for the respondent; however, they are a relatively time-consuming method of carrying out field research.

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16
Q

Describe the ‘telephone survey’ method of field research:

A

the researcher conducts an interview with the respondent over the telephone using a questionnaire containing standardised questions. Telephone surveys allow a large number of respondents to be surveyed at relatively little expense; however, many people see market research calls as a nuisance and will refuse to take

17
Q

Describe the ‘postal survey’ method of field research:

A

a questionnaire is sent through the post to respondents who mail it back upon completion. Postal surveys can cover a wide geographical area and can target specific target markets based on postcode; however, they have a very low response rate as many people view it as junk mail.

18
Q

Describe the ‘online survey’ method of field research:

A

a questionnaire is hosted on the internet for respondents to complete. Many online surveying tools such as Survey Monkey will provide automatic analysis, graphs and summaries of the data collected; however, this method relies on people having internet access.

19
Q

Describe the ‘hall test’ method of field research:

A

respondents are given a sample of the product to try and their feedback is gathered. This method allows the researcher to gather high-quality, qualitative feedback instantly; however, respondents might feel compelled to give a positive response out of politeness

20
Q

Describe the ‘focus group’ method of field research:

A

a group of volunteers from a target market are brought together to discuss a product. The researcher will record what is being said. The respondents have actively volunteered to be part of the focus group, which means they should have lots of opinions to share; however, organising focus groups is a relatively expensive and time-consuming method of research.

21
Q

What are some common sources of desk research used by businesses?

A

-government reports and statistics (such as census data)
-reports produced by market research companies such as Mintel,
-competitors’ websites,
-trade magazines and journals,
-reputable newspapers e.g. the Guardian,

22
Q

What are the advantages of desk research?

A

• it is a relatively inexpensive way of gathering and obtaining data;
• it is relatively quick to gather compared to field research, meaning that decisions can be made quicker;
• large amounts of information and data are available at little to no cost;

23
Q

What are the disadvantages of desk research?

A

• the data gathered could be out of date, leading to poor decisions being made;
• the same information is also available to competitors;
• the information might contain bias.