3.3.2 Marketing Management Flashcards
(23 cards)
What is primary market research?
Data collected firsthand by a business for a specific purpose, such as surveys, interviews, or focus groups.
What is secondary market research?
Data previously collected for another purpose, like government reports or industry statistics.
What are the advantages of primary research?
Specific to the business’s needs, up-to-date, and confidential.
What are the disadvantages of primary research?
Time-consuming, costly, and may require expertise to conduct effectively.
What are the advantages of secondary research?
Quick to access, cost-effective, and provides a broad overview.
What are the disadvantages of secondary research?
May be outdated, not specific to the business’s needs, and potentially unreliable.
What is random sampling?
Every individual has an equal chance of selection, reducing bias.
What is stratified sampling?
The population is divided into subgroups, and random samples are taken from each subgroup.
What is quota sampling?
The population is segmented, and samples are taken to reflect the proportion of each segment.
What factors influence the choice of sampling method?
Budget, time constraints, desired accuracy, and the nature of the target population.
What is correlation in marketing data?
A statistical relationship between two variables, indicating how one may predict the other.
What is a confidence interval?
A range that estimates the true value of a population parameter, indicating the reliability of data.
What is extrapolation in marketing?
Predicting future trends based on existing data patterns.
What are the risks of using extrapolation?
Assumes past trends continue, which may not account for market changes or unforeseen events.
What is price elasticity of demand (PED)?
Measures how demand changes in response to price changes.
What is income elasticity of demand (YED)?
Measures how demand changes in response to income changes.
What does a PED greater than 1 indicate?
Demand is elastic; consumers are sensitive to price changes.
What does a PED less than 1 indicate?
Demand is inelastic; consumers are less sensitive to price changes.
What does a positive YED indicate?
The good is normal; demand increases as income increases.
What does a negative YED indicate?
The good is inferior; demand decreases as income increases.
Why is data important in marketing decision-making?
Provides evidence-based insights, reduces risk, and informs strategic planning.
What is the scientific decision-making process in marketing?
Set objectives → Gather data → Analyze data → Make decisions → Implement → Review.
What are the limitations of relying solely on data?
Data may be outdated, incomplete, or not account for qualitative factors like consumer behavior nuances.
