unit 3 - chapter 8 Flashcards
marketing research definition
involves gathering and analysing data relevant to the marketing process
what is the link between market research and the customer (6W’s)
understand consumers in more detail
- who (demographic)
- what
- what influences ( advertisement)
- when (seasonal)
- where
- why
competitiveness definition
measures the extent to which a business offers good value for money relative to competitors, a business is competitive if it offers better value for money than rivals
what are the 2 forms of marketing research
- primary
- secondary
primary marketing research definition
collects and analyses data for the first time to use for marketing purposes
secondary marketing research definition
collects and analyses data that already exists for marketing purposes
examples of secondary research
newspapers, annual reports
pros and cons of secondary marketing research
cheap, less time consuming
- might not be in the exact format you want
examples of primary marketing research
observe shoppers behaviour on cctv, interview customers, survey
pros and cons of primary marketing research
personal market research (no one else would have or know it)
- time consuming
- can be expensive
target population definition
all the items or people that are relevant to the market research being undertaken
sample definition
a group of people or times selected to represent the target population
How is the accuracy and the value of the sampling effected
- how the people or items are selected
- how the sampling is conducted
- the sampling size
quantitative data definition
data in numerical form
qualitative data definition
not in numerical form often descriptive
when is quantitative data used
to show what is happening in the market, but doesnt explain why
when is qualitative data used
information on people’s feelings and emotions and why they/things happen
market mapping definition
analyses market conditions to identify the position of one product or brand relative to others in the market in terms of given criteria
correlation definition
occurs when there is an apparent relationship between one factor and another
what are the values for the strength of correlation
-1 perfect negative correlation
0 no correlation
+1 perfect positive correlation
confidence interval definition
the possible range of outcomes for a given confidence level
e.g 95% confidence level that sales will be between £500,000 and £700,000 (interval)
confidence level definition
the probability that the research findings are correct
3 ways to interpret market data
- correlation
- extrapolation
- confidence intervals
extrapolation definition
market research will enable a business to track what has happened in the past and to estimate what sales might be like in the future (continuing the trend)
negative of extrapolation
only works if conditions do not change
what factors influence the level of confidence
(confidence level)
- size of the sample
- how the sample was constructed
equation of PED
% change in quantity demanded / % change in price
brand definition
a “promise of experience” and conveys to consumers a certain assurance as to the nature of the product or service they will receive
patent definition
protects new inventions and covers how things work, what they do, how they do it, what they are made of and how they are made
trademark definition
a sign which can distinguish the goods and services of a business from those of its competitors
price elasticity of demand definition
measures how responsive demand is to a change in price, all other factors are constant
income elasticity of demand definition
measures the sensitivity of responsiveness of quantity demanded of a product to a change in its price
income elasticity of demand formula
%change in quantity demanded / %change in consumer income
big data definition
large and complex data sets
how can market research go wrong
- changes in markets
- the way information is gathered
- lack of information
