Unit 5.1 - Marketing Flashcards
Define market size
The number of individuals within the market which are potential buyers and sellers
Also mean the total value of products in the market
Define market share
Market share is the proportion of total sales within the market that is controlled by the business
Market share = sales(value of sales) for company A/total sales(value of sales)in the market * 100
Define segmentation
Dividing the market into different groups such as: Age Income Location Gender
Businesses undertake research reasons (5)
Understand customers
Identify and satisfy needs
Increase sales - demand at given price
Stay competitive - how they are different from competitors
Target marketing - effective promotional material
Define primary research
Obtaining information first hand
Define secondary research
Using information that has already been collected previously -readily available
Types of primary research
Questionnaires Phone surveys Focus group - small group of people discuss their opinions of a product Interviews Samples
Types of secondary research
Reports - Mintel, government Newspapers Magazines Internet Books
Benefits of primary research (4)
Up to date Relevant Specific to the businesses needs Cheap Dependent on sample size
Costs of primary research (4)
Expensive Time consuming Bias Ignored Dependent on sample size
Benefits of secondary research (3)
Cheaper
Information can be easily found
Instantly available
Costs of secondary research (3)
Out of date
Not always relevant
Not specifically for what the business may need
