1.1 meeting customer needs

Question 1

what are the two main types of market research ?

Answer 1

-primary research
-secondary research

Question 2

what is primary research ? what is it used for?

Answer 2

-primary research involves the collection of first hand data that did not exist before
-its original data
-the data is used for making specific decisions about the business e.g a new market product

Question 3

name 5 types of primary research

Answer 3

-questionnaires
-interviews
-observations
-loyalty cards
-focus groups

Question 4

what is secondary research ?

Answer 4

-secondary research is research that has already been undertaken by another organisation
-it already exists

Question 5

name 5 types of secondary research

Answer 5

-national and local government
-market research organisations
-academic organisations
-internal data
-annual reports

Question 6

name 3 benefits and drawbacks of primary research

Answer 6

+ kept private-not publicly available
+ more detailed insights
+ directly focused research objects
- time consuming
- risk of survey bias
- sampling may not be representative (typical)

Question 7

name 3 benefits and drawbacks of secondary research

Answer 7

+ often free and easy to obtain
+ good source of market insights
+ quick and easy to access
- can quickly become out of date
- not tailored to business needs
- specialist reports often quite expensive

Question 8

marketing mix definition

Answer 8

the plan for getting the right blend of product, place, price and promotion

Question 9

what is marketing strategy ?

Answer 9

the medium to long term plan for meeting the marketing objectives through the marketing mix

Question 10

marketing segmentation definition

Answer 10

Dividing potential customers into different groups. For example, age, gender or income to find areas that are underserved e.g bikes for older people

Question 11

Marketing objectives definition

Answer 11

The targets the marketing department must achieve e.g increase sales by 15% in 12 months

Question 12

What is a target market ?

Answer 12

The audience/ group of consumers that a business aims to sell is product/ service to

Question 13

what is the market ?

Answer 13

The market is where buyers meet sellers, either face to face or online

Question 14

What is mass marketing ?

Answer 14

Targeting the product/service to everyone instead of to one specific customer.

Question 15

What is niche marketing ?

Answer 15

Identifying a customers specific wants and needs and selling it to that specific consumer.

Question 16

+ and - of mass market

Answer 16

+more customers
+can build a strong market presence
-higher levels of competition
-lower profit margins

Question 17

+ and - of niche markets

Answer 17

+ less competition
+customer loyalty
-no economies of scale
-vulnerable because they have a less diverse product portfolio

Question 18

What is a brand ?

Answer 18

A brand is a good or service that has something that is unique and recognisable, this could be the way the product is designed or different features it has.

e.g adidas

Question 19

What is marketing ?

Answer 19

Marketing can be defined as the department tasked with targeting the right product at the right target market.

Question 20

What is a target market ?

Answer 20

A particular group of customers at which a product or service is aimed.

Question 21

What is a dynamic market ?

Answer 21

Dynamic markets are markets that experience rapid and continuous change.

Question 22

What are the 3 main risks of businesses ?

Answer 22

-Risk of failure
-Financial loss
-Lack of security

Question 23

What is uncertainty?

Answer 23

Uncertainty is where a business is unable to foresee problems.

Question 24

What is risk ?

Answer 24

Risk is where there is a chance something could go wrong and not end up as expected.

Question 25

What often causes uncertainty within a business ?

Answer 25

Lack of information

Question 26

What is market research ?

Answer 26

The process of collecting and processing information about the market that a business operates in.

Question 27

how do you calculate market share

Answer 27

total sales of business/total sales of market (x100)

Question 28

product orientation meaning

Answer 28

= when the business focuses on the innovation of the product, the product is the most important factor

Question 29

+ of product orientation

Answer 29

-cheaper production costs
-less expenditure on market research

Question 30

• of product orientation

Answer 30

-may not meet customer needs successfully

Question 31

market orientation meaning

Answer 31

= when the business focuses on the market , catering to customers specific wants and needs

Question 32

+ of market orientation

Answer 32

• greater customer trust and loyalty
  -improved brand image (meeting customer needs)

Question 33

• of market orientation

Answer 33

• consumer needs change constantly (higher costs to keep up with dynamic market)

Question 34

qualitative data meaning

Answer 34

= data based on opinions and preferences

Question 35

+ of qualitative data

Answer 35

• personal to consumers, more guidance to improve product/service

Question 36

• of qualitative data

Answer 36

opinions can be biased

Question 37

quantitative data meaning

Answer 37

= data based on numerical facts

Question 38

+ quantitative data

Answer 38

• strongly reliable, based on “cold hard fact”

Question 39

+ of market research

Answer 39

• allows business to stay more on top of trends
  -reduces risks by testing conceptions

Question 40

• of market research

Answer 40

• time consuming
• expensive
  -may only focus on a small population of the businesses target market

Question 41

what is added value

Answer 41

when a business adds to a product or service to make it more appealing to the consumer

Question 42

ways to add value to a product (2)

Answer 42

-add new features (change in design)
-improve product packaging and design