Unit 4 G11 Flashcards
Quantitative VS Qualitative Data
Collecting measurable data
Collecting non-numerical data (non-measurable)
Hard data
Soft data
Objective
Subjective
Easy to measure but requires a large sample
Doesn’t require a large sample but hard to analyze
Market Size
The total amount of sales of an industry
Interview Pros and Cons
In-depth data and flexible
Time-consuming, hard to get a large sample
Differentiation
The process of using the USP to make the company or product stand out from its competitors
It’s cost-effective, but doesn’t guarantee sales
Three Segmentations
Demographic
Geographic
Psychographic
Pros and Cons of Marketing Plan
Reduces risks and fosters interdependence and motivates
Doesn’t guarantee success and time-consuming
Market Growth
Percentage of positive change in market size
(Market size now - Market size before)/Market Size Before * 100
Product Orientation
Relies on innovating something new
Inward-looking
Success will lead to almost no competition, but if it fails it was a waste of time and money
Marketing Plan
A document that records marketing objectives and strategies
Segmentation, Targeting and Positioning
Segmentation is dividing potential customers into groups with similar characteristics
Targeting is the process of selecting the relevant market segments
Positioning is presenting the product in a way to create the desired customer perception (Product Perception Map)
Market Orientation
Relies on market research and identifying people’s needs and wants
Outward-looking
Quick response to needs and wants, but expensive and time-consuming
Primary Research
Gathering first-hand (new) data
Advantages: Up-to-date, unique and confidential, advantage over rivals
Disadvantages: Time-consuming, requires qualified people, and prone to bias
Market Analysis Pros and Cons
Professional and trustworthy and readily available and well-presented
Expensive
Niche VS Mass Market
Very specifically and narrowly defined group of customer, targeted
Very unspecific and broadly defined group of customer, untargeted
Systematic and Ad-hoc
Systematic: Continuous and regular
Ad-hoc: When necessary and irregular
Consumer Profile
A description of an ideal customer
Online Content Pros and Cons
Easy to access and free
Most unreliable and biased
Three Targets
Undifferentiated
Differentiated
Concentrated
Media Article Pros and Cons
Easy to access and reflects current trends
Biased
Purpose of Market Research
Provides up to date data
Helpful for setting GOST
Reduces risk
Pros and Cons of High Market Share
Market power, brand recognition, market leader
Forced to meet expectations, high market share doesn’t mean being profitable
Secondary Research
Gathering second-hand data
Advantages: Quickly accessed
Disadvantages: Available to everyone, might not fit organization’s needs
Market Research
Gathering and analyzing information about the market and customers’ needs in order to develop a market strategy
Observation Pros and Cons
Convenient way to identify behavioural patterns and verify marketing strategies
Reasons for behaviour are not explained
