1.2 Flashcards
(35 cards)
What are needs and wants? Give examples.
Needs are considered to be essentials eg shelter or
food
Wants are desires and not considered essential e.g.
latest smart phone
How do businesses meet customer needs?
Price, Quality, Choice and Convenience.
What is Price and how does it help the buisness?
The amount of money a customer would pay withing their budge. By doing this, the business will understand to price of the products competitively to appeal the audinece.
What is Quality and how does it help the buisness?
The standard of excellence that meets the customer needs. This helps the business as they can create products that the customers desire leading to loyal customers.
What is Choice and how does it help the buisness?
The wide range of preferences for the customers to choose out of a variety. This helps the business increase in customer satisfaction and loyalty
What is Convinence and how does it help the business?
Th products the customer needs/wants is easily accessible for them. This helps the business create a customer experience and build customer loyalty.
How do we generate sales?
Customer needs: Tailor the products to their needs making them want to repurchase and generate sales
Relationship building: Customers would return to a business who understands them and their value
Target Marketing: It speaks directly to their customers increasing the effectiveness of marketing efforts increasing sales.
How can we keep business survival?
Competing: If a business doesn’t meet their customers needs, they can loose customers to their opponent
Changing preferences: Customers preferences can change quickly and if a business doesn’t stay on track, they could loose to their opponent.
Building reputation: If a business has a good background, this could lead to a repeat in business.
What is market reasearch?
a method that helps companies understand what their target audience wants and needs
What is the purpose of market research?
To identify and understand customer needs
To identify gaps in the market
To inform business decisions
To reduce risks
What is primary research?
Used to gather information that does not exist
What are the methods of primary research?
Questionaires, Focus groups, Surverys, Customer interviews
What are the advantages and disadvantages of primary reserch?
Advantage:
Up to date information
Other businesses have no access to data
You can ask specific questions you want answered.
As questions to your target market
Disadvantage:
Expensive to collect
Takes time to collect
Qualitative answers may be hard to interpret
What is secondary
research?
Research that has previously been carried out or published for another purpose
What are the methods of secondary research?
Newspaper and internet articles
Trade organisations and journals
Government Statistics
Company and market research reports
Market research agencies
What are the advantages and disadvantages of secondary reserch?
Advantages:
Ready and available
Low or no cost
Can provide lots of additional helpful information
Disadvantages:
May not be relevant for the selected purpose
Can be out of date
Unreliable as unknown source
What is Quantitative Data and Qualitative Date?
Factual information is called Quantitative Data (numerical)
Information collected about opinions and views is called Qualitative Data.
one disadvantage of using qualitative data for market research
It can be time-consuming . Qualitative data often involves detailed responses which requires significant effort to gather and interpret .
What is makret segmation?
dividing customers within a market into smaller groups with common needs or wants. This makes it easier for a business to find a product or service that fulfils the needs or wants of this smaller group
What are the parts of Market segmation
Location, Income, Age, Lifestyle, Other demographic factors
What is loctaion?
where a person lives
What is income?
How much people earn (income)
What is lifetsyle?
The way a person chooses to live in terms of products and services varies.
What are the other demographical factors? Give an example!
Gender: products e.g. toiletries and
clothes
Religion: products e.g. food
(halal/kosher)
