2nd test revision Flashcards
(31 cards)
What is Market research?
the process of collecting and processing information about the market that a business operates in. Market research gathers information on: target market, competition and demand
What are the aims of market research?
identify and understand the needs of customers relating to price, quality, choice, and convenience.
What does identifying the needs of customers do?
Reduce risk for the business and make more successful business decisions.
What is the purpose of identifying gaps in the market?
Spotting a gap in the market gives a new business a good chance of success as there will be little competition to begin with.
Why is market research done?
To reduce risk and enable business to make better decisions.
What is primary research and how is it done?
Primary research is conducted by the business and done in ways like surveys, questionnaires (open questions/closed questions), focus groups
What are some advantages of primary research?
Advantages of primary research: specific, relevant, up to date. .
What are some disadvantages of primary research?
Disadvantages of primary research: time consuming, expensive
What is secondary research?
Secondary research is when business gather data that is already existing and is found on the internet, market reports, newspapers, books.
What are some advantages of secondary research?
Advantages of secondary research: quick and easy, easy to analyse
What are some disadvantages of secondary research?
Disadvantages of secondary research: could be out of date, inaccurate, easily accessible so could have been used by many businesses, not specific
What is qualitative data?
Qualitative data is usually peoples’ opinions which is usually very descriptive and is gained by open-ended questions.
What is quantitative data?
Quantitative data is usually numerical data, can be expressed in a graph or chart and is gathered by closed questions.
What are the benefits of using social media for Market research?
Some business use social media for market research the benefits are it is cheaper than other forms of market research, it can save time and allows the business the spot the latest trends and monitor the competition.
What are advantages of having reliable research?
Advantages of having reliable market research is the business can make informed decisions, reduces risk, less money wasted, higher chance of business success
What are consequences of not having reliable market research?
Consequences of unreliable market research is the business making unwise decisions, cost the business more money, could lead to failure and loss of sales.
What is market segmentation?
Market segmentation in the process of splitting a business’ target market in different groups
What are the different market segmentations?
The different segmentations are demographic, behavioral, lifestyle, income
What is demographic segmentation about?
Age, race, gender, nationality
What is behavioral segmentation about?
How people behave at different times of the year
What is lifestyle segmentation about?
Hobbies and how people live their lives
What is income segmentation about?
How much money people earn
What is market mapping used for?
Market mapping is used to find gaps in the market.
What is a business competitor?
A competitor is any business that sells the same or similar products or services
