Profiling Customers and Competition (Chapter 7)

Question 1

What is Market Research?

Answer 1

A marketing process that results in determining the target market and the positioning of the product.

Question 2

What is Primary Research?

Answer 2

Primary research involves finding out new first hand information. E.g. interviews, questionnaires, observations

Question 3

What is Secondary Research?

Answer 3

Secondary research involves gathering existing information. E.g. market research reports, trade journals

Question 4

What is Data Analysis?

Answer 4

Data/Market analysis and interpretation is carried out in order to determine if there is a market for a particular product or service. It can also assist with deciding if the business has an idea that will appeal to customers and the likelihood of sales forecasts being met.

Question 5

What is the definition of Market Segmentation?

Answer 5

The division of customers into groups based on their similarities.

Question 6

What are the 3 categories of Market Segments?

Answer 6

Geography, Demography, Physchographic.

Question 7

What is the definition of Demographic Characteristics?

Answer 7

Demographic characteristics are based on attributes of the consumer population. E.g. sex, age, education, occupation

Question 8

What is the definition of Geographic Characteristics?

Answer 8

Geographic characteristics are based on where the consumers live and how they access the product.

Question 9

What is the definition of Psychographic (lifestyle & behaviour) Characteristics?

Answer 9

Lifestyle characteristics are based on the attitudes and values of the consumer population, while behavioural characteristics are based on how/why the consumer would use the product.