theme 1- 1.2 Flashcards
spotting a business opportunity
what are customer needs?
- price
- quality
-choice
-convenience
why is it important to identify and understand customer needs
- helps businesses make products that meet the needs
- generate sales
- business survival
what are the purposes of market research?
- identify and understand customer needs
- spot gaps in the market
- reduce risk
- inform business decisions
what are the methods of primary market research?
- questionnaires
-surveys (documents with questions to collect information from people) - focus groups (small group of people discuss their attitudes towards a product)
- observation
what are the advantages of primary market research?
- provides data that is up to date, relevant and specific to the needs of the business
what are disadvantages of primary market research?
- expensive
- time consuming
what are advantages of secondary market research?
- useful for looking at the whole market
- can analyse past trends
- cheaper than primary
- data is easily found and instantly available
what are disadvantages of secondary market research ?
- not always relevant to your needs- not specifically about your products
- often out of date
what is quantitative data?
anything you can measure or reduce to a number
what is qualitative data?
all about people’s feelings and opinions
what is a disadvantage of qualitative data?
tricky to analyse as it’s hard to compare two peoples opinions
what is an advantage of qualitative data?
gain a greater depth of information
what is the role of social media in collecting market research?
websites like facebook allow people to create profiles of themselves on the internet including putting things they enjoy- businesses can collect this information and use it to see what’s popular
what is the importance of the reliability of market research data?
- all market research data needs to be reliable sots results can be repeated by another researcher
- reliable market research represents the people the business is interested in accurately
- the more reliable, the more useful
what can a market be segmented into?
- age
- income
- location
- lifestyle
how can market segmentation be useful?
allows businesses to identify their target market and then create a marketing strategy aimed at their target market to make sure their marketing is as effective as possible
what can businesses use a market map to find out?
-competitors selling similar products
-any gaps in the market
how can businesses use gaps in the market to their advantage?
can create products with the features needed to fill the gap- will help business be different from competition - increase sales
when making decisions a business might look at the strengths and weaknesses of its competitors on what areas?
- price
- customer service
- quality
- product range
- location
how might price impact business decision making?
firms may decide to charge lower prices than they would like to stop customers buying from their competitors
how might customer service impact business decision making?
a business might decide to train its staff in good customer service or provide extra the customer buys the product
how might quality impact business decision making?
may spend money on developing high quality products or on promotional material that emphasises quality
how might product range impact business decision making?
may try to fill gaps in the market by developing new products so it appears more innovative than its competitors and more attractive to customers
how might location impact business decision making?
may open store in particular locations r to sell items online in order to offer the greatest convenience to customers as possible
