LEARNING AIM B Flashcards
(15 cards)
What is the role of market research?
Helps businesses make informed decisions by gathering and analyzing data about customers, competitors, and market conditions.
What are the key areas of market research?
- Business objectives
- Continuous analysis (digital/traditional)
- Changes over time
- Market size/structure
- Market segments
- Customer needs/preferences
- Customer experience/satisfaction
- Trends
- Brand awareness
- Competition
- Internal/external factors
What are primary market research methods?
- Interviews/surveys/questionnaires/polls
- Direct observation/mystery shopping
- Focus groups/digital communities
- Tests/trials/pilot studies
What are internal secondary research methods?
- Customer data
- Loyalty schemes
- EPOS (Electronic Point of Sale)
- Website monitoring
- Financial/accounting records
What are external secondary research methods?
- Company accounts/reports
- Government statistics
- Data from research agencies
- Trade journals/media sources
What is quantitative data?
Numerical, measurable data (e.g., sales numbers, demographics).
What is qualitative data?
Non-numerical data describing qualities (e.g., opinions, attitudes).
What factors determine research quality?
- Appropriateness
- Cost
- Accuracy
- Currency
- Reliability
- Validity
What is validity in research?
Ensures the research measures what it intends to, with a representative sample and meaningful results.
What are macro-environment factors (PESTEL)?
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
What are micro-environment factors?
- Customers
- Competitors
- Suppliers
- Intermediaries
- Publics
What are internal environment factors?
- Resources (financial/non-financial)
- People/skills
- Equipment/systems/processes
- Digital capabilities
What is SWOT analysis?
Evaluates:
- Strengths (internal advantages)
- Weaknesses (internal limitations)
- Opportunities (external positives)
- Threats (external challenges)
What is the Ansoff Matrix?
A growth strategy tool focusing on products and markets:
- Market penetration
- Product development
- Market development
- Diversification
What is Porter’s Five Forces?
Analyzes industry competition:
1. Threat of new entrants
2. Threat of substitutes
3. Competitive rivalry
4. Bargaining power of suppliers
5. Bargaining power of buyers
