1.2 Flashcards
Market:
Definition: Any place where buyers and sellers meet.
Example: Amazon website, shopping mall.
Needs vs. Wants:
Needs: Essential (e.g., shelter, food).
Wants: Non-essential desires (e.g., Nike trainers).
Aim of Marketing:
Objective: Identify, anticipate, and satisfy consumer needs profitably.
Tool: Market research systematically gathers consumer data.
Price:
Definition: Amount customers are willing to pay.
Benefit: Helps price competitively, design promotions.
Quality:
Definition: Standard of excellence expected by customers.
Benefit: Builds customer loyalty, positive word-of-mouth.
Choice:
Definition: Range of preferences customers want.
Benefit: Increases satisfaction, loyalty with varied options.
Convenience:
Definition: Value of easy access and use.
Benefit: Builds loyalty, repeat sales with efficient experience.
Benefits of Understanding Customers:
Business Survival:
Importance: Essential for both new and established businesses.
Achieved by: Addressing customer needs for sustained success.
Benefits of Understanding Customers:
Generating Sales:
Importance: Crucial for business success and growth.
Achieved by: Tailoring products/services to customer preferences.
Benefits of Understanding Customers:
Ensuring Business Thrives:
Importance: Key to long-term success and competitiveness.
Achieved by: Adapting strategies based on customer understanding
Two benefits of understanding customers
generating sales
business survival
How does understating customer needs generate sales?
Tailor products to meet needs
increases likelihood that customers will make a purchase which generates sales revenue
How does relationship building with customers generate sales ?
can lead to repeat business, as customers are more likely to return to a business that understands and values them
How does targeted marketing generate sales?
targeted marketing campaigns speak directly to their customers and can increase the effectiveness of marketing efforts, leading to more sales
competing - how understanding customer needs leads to business survival
if businesses fail to meet the needs of their customers, they risk losing customers to competitors who do
changing preferences - how understanding customer needs leads to business survival
customer preferences can change quickly
business that fail to keep up with these changes risk becoming obsolete
building reputation - how understanding customer needs leads to business survival
building a positive reputation leads to repeat business and positive word-of-mouth referrals which keeps a business going
Q: What is market research?
A:
Market research is the collection and analysis of information about a market.
Q: Why is market research important for businesses?
A:
It helps reduce risk, identify customer needs, find market gaps, and make informed decisions.
What are the two main methods of market research?
A:
Primary Research and Secondary Research.
Q: Name primary methods of primary research.
A:
Surveys, Observation, Interviews, Test Marketing, and Focus Groups.
What’s the difference between quantitative and qualitative data in market research?
A:
Quantitative data is numeric (e.g., sales), while qualitative data is descriptive (from conversations).
Q: What are the limitations of market research data?
A:
Qualitative data may have small samples and bias; quantitative data can be expensive and outdated.
How has social media impacted market research?
A:
Social media has sped up communication, provided cost-effective polling, enhanced brand loyalty, and encouraged customer feedback.
