1.2

Question 1

What are the 5 different ways businesses will change because of competitors:?

Answer 1

1. Price
2. Customer service
3. Quality
4. Product range
5. Location

Question 2

Define market size?

Answer 2

The number of individuals (including companies) within the market which are potential buyers or sellers of products. It can also mean the total value of products in the market

Question 3

Define market share?

Answer 3

Is the proportion of total sales within the market that is controlled by the business

Question 4

Define market segment?

Answer 4

An identifiable group of individuals, families, sharing one or more characteristics

Question 5

What does Primary Research involve?

Answer 5

Getting information from potential customers yourself

Question 6

Define focus group?

Answer 6

A small group of people discuss their attitude towards a product

Question 7

Is observation an example of primary research?

Answer 7

Yes

Question 8

What is a pro of large sample of primary research?

Answer 8

It is more accurate

Question 9

What is a con of large sample of primary research?

Answer 9

More expensive

Question 10

What is a con of primary research ?

Answer 10

It’s expensive and time consuming

Question 11

What is a pro of primary research ?

Answer 11

It’s up-to-date,relevant and specific

Question 12

What is secondary research?

Answer 12

Looking at work already published

Question 13

What are examples of secondary research?

Answer 13

• Market research reports
• Government reports
• Newspapers
• Magazines

Question 14

What are advantages of secondary research?

Answer 14

• Cheap
• Easily found
• Instantly available

Question 15

What are disadvantages of secondary research?

Answer 15

• Not always relevant
• Not specific
• Could be out of date

Question 16

Define Quantitative data?

Answer 16

Data to do with numbers

Question 17

Define qualitative data?

Answer 17

Data to do with opinions and words

Question 18

What is a reason for market segmentation?

Answer 18

It can help a business to find out who their customers are

Question 19

Define segmentation?

Answer 19

When people within a market are divided into different groups

Question 20

A market can be segmented by its…

Answer 20

Demographics

Question 21

What are examples of demographics?

Answer 21

• Age

- Income

Question 22

What are example of ways to segment the market

Answer 22

• Location
• Lifestyle
• Income
• Age

Question 23

Define demographics?

Answer 23

Statistical data relating to the population and particular groups within

Question 24

What are 2 purposes of market mapping?

Answer 24

• Competitors selling similar products- and how customers perceive them
• Any gaps in the market

Question 25

What two variables do market maps normally have?

Answer 25

Price and quality

Question 26

What are advantages of using social media to collect market research

Answer 26

They can see what sorts of things are popular or are increasing in popularity

Question 27

What is a market map

Answer 27

When you plot different businesses in terms of how expensive it is and how expensive it is and how good the quality is

Question 28

What are advantages of using s market map

Answer 28

You can spot competition and gaps in the market

Question 29

What's a disadvantage of a market map

Answer 29

They're opinion based

Question 30

What is a market segment

Answer 30

Putting people into different groups

Question 31

What is product differentiation

Answer 31

Changing your products

Question 32

What are ways you can segment a market

Answer 32

- Age - Income - Location - Lifestyle - Race - Gender

Question 33

What are benefits of market segmentation

Answer 33

- You know how a market is segmented - Know market size and shares - You can create a marketing strategy at their target market

Question 34

What are limitations of market segmentation

Answer 34

- Generalising | - Not very specific

Question 35

What is a SWOT analysis and what does it stand for

Answer 35

``` A way of analysing the company internally Strength Weaknesses Opportunity Threat ```

Question 36

What is a focus group

Answer 36

A bunch of people that get together and discuss a new product

Question 37

What is an observation

Answer 37

Noticing something

Question 38

What is an interview

Answer 38

When an employer asks questions to see if they want to give the person the job

Question 39

What is field research

Answer 39

Going and doing your own research (primary research)

Question 40

What is validity

Answer 40

How valid something is

Question 41

What is desk research

Answer 41

Using research that has already been done (secondary research)

Question 42

What is qualitative data

Answer 42

Data to do with words and opinions

Question 43

What is quantitative data

Answer 43

Data to do with numbers

Question 44

What is a customer

Answer 44

The person who BUYS the product/service

Question 45

What is market research

Answer 45

The action or activity of gathering information about consumers' needs and preferences

Question 46

What is a purpose of doing market research

Answer 46

- To understand customer needs | - To spot a gap in the market

Question 47

What is an advantage of doing primary research

Answer 47

- Specific | - Recent

Question 48

What is primary research

Answer 48

Research you conduct yourself

Question 49

Disadvantages of primary research

Answer 49

Takes up time and money

Question 50

What is secondary research

Answer 50

Using research that has already been conducted

Question 51

What are advantages of secondary research

Answer 51

- May be less reliable | - May be out of date