Flashcards in Theme 1.2 Deck (19)
What are the three meanings of the word market?
A place where goods are traded between customers and suppliers, Trade in a particular type of product (oil market), The potential customers for a product.
What are competitors?
Competitors are different businesses that sell the same products in the same market. They compete with each other over sales to customers.
What are the areas in which a business can stand out in?
Price (lower prices are attractive)
Customer Service(customers will be willing to pay more if there is better customer service)
Quality(customers may pay more for better quality, better satisfaction)
Product Range ( Larger ranger of products makes a business more attractive)
Location (convenient place means that customers are more likely to buy products)
Why may a business carry out market research?
To understand how they are performing in the market, To understand customer needs, Make informed decisions, Reduce risk, Spot a gap in the market. `
What is market share?
The proportion of total sales within the market that is controlled by the business.
What are the four main types of Primary market research?
Focus Groups (groups of people who are asked about their views in an open discussion)
Interviews( Face to face or telephone)
Observation(observing people to see their reaction to a product).
What is secondary research?
Secondary research involves using existing sources of data that have already been researched.
What are the two kinds of information?
Internally sourced info(data, stats and facts accumulated by business previously)
Externally sourced info(published by people or organisations) .
Advantages of Secondary Research.
It is cheaper and also saves time.
Disadvantages of Secondary Research.
It may not always be reliable. It may not suit your requirements.
Advantages of Primary Research
Primary research allows a business to tailor the research to their needs
Disadvantages of Primary Research
It takes a lot of time and also costs a lot of money.
What are the two types of data?
Quantitative (anything that can be measured or given a value) and Qualitative (opinions and feelings).
What is Market Segmentation?
When people within a market are divided up into different groups.
How can a market be segmented?
Age, Income, Location and Lifestyle, Behaviour and Demographics.
What does a market map tell a business?
Any gaps in the market, Competitors selling similar products. If there is demand for a product.
Give 3 methods of Secondary market research
Market research reports, Articles (from newspapers and magazines), Government reports
What are the two types of competitors?
Direct Competitors (businesses that sell the same type of product)
Indirect Competitors (competitors that do not sell the same type of product but still find themselves in competition) eg. British Airways and Eurostar.