Topic 1.2 Flashcards
Customer needs
- Price
- Quality
- Choice
- Convenience
Importance of understanding customers ?
- Increase sales
- Business survival
Strengths and weaknesses of competitors in these areas:
(Impact of competition on business decision making)
- Price
- Customer service
- Quality
- Product range
- Location
- USP
How does market research help businesses ?
- Make informed decisions
- Spot a gap in the market
- Reduce risk
What are the 2 types of market research ?
- Primary market research: new research that a business undertakes itself
- Secondary market research: gathering existing data that has already been produced
Way to collect primary market research
- Surveys
- Questionnaires
- Observation
- Focus groups
Pros and cons of primary market research
Pros: up-to-date, specific to the business, detailed info
Cons: time consuming, expensive
Ways to collect secondary market research
- Internet research
- Market reports
- Government reports
Pros and cons of secondary market research
Pros: cheaper, easily found
Cons: out of date, inaccurate, not relevant
What is quantitative data?
Anything that you can measure or reduce to a number e.g. statistics
What is qualitative data?
Is usually expressed as opinions and includes descriptive information
Social media and market research
Businesses sometimes collect information about what is popular and it is cheaper whilst being a large scale
Definition: market segmentation
When businesses split up potential customers into groups depending on shared characteristics
Ways to segment a market
- Age
- Gender
- Income
- Ethnicity
- Lifestyle
What is market mapping?
Using a graph to plot relative products to understand competitors and spot a gap in the market
