Topic 1.2 Flashcards
What are the 4 customer needs
Price
Choice
Quality
Convenience
Why does price matter
If a price is too high, there will be not enough demand for the product or you will not have a ompetitive advantage over competitiors
Why does quality matter
It is very subjective but it can still affect someone’s buying decisions because it depends if consumers think it is good value for money
Why does choice matter
Different customers want different things and it also makes life interesting
Why does conveinence matter
It id important as customers don’t want to spend lots of time trying to do something. This is why amzon’s next day delivery is so sucessful
What is the purpose of market research
To identify and understand customer needs
To identify gaps in the market
To reduce risk
To inform business desicions
What is market research
Research carried out to find out more a out customer needs and wants
What is the difference between primary and secondary market research
Primary research is market research you do yourself but secondary research is research that already exists and has been colected for a different purpose
What are examples of primary market research
Online survey
Questionaire
Focus group
Observation
What are examples of secondary market research
Government reports
Trade magazines
Internet
What is Quantitative data
Numbers, yes or no questions. single word response. Closed questions
What is Qualitative data
To do with feelings and are longer answers. they are open questions
What are advantages of primary market research
New information
The information is relavent to you
It has a competitive advantage
Up to date
What are disadvantages of primary market research
It’s more expensive and is more time consuming than secondary research
Interview bias
What are advantages of secondary market research
It is cheaper than primary research
It is available immediately
What are disadvantages of secondary market research
It has already been used
It could be outdated or unreliable
What is a target market
The group of people your product/service is aimed at
What is market segmentation
A group of buyers with similar characteristics and buying habits
How can a market be segmented
Location
Income
Lifestyle (hobbies/interests)
Age
Gender
Race
Religion
Benefits of market segmentation
Helps business to understand their consumers better
Easier to target your product at specific buyers
Why might it be hard to start a business in a mass market
It is difficult to sell a product which appeals to lots of different types of customers
Why might it be hard to start a business in a niche market
It may not appeal to many customers so it can’t make enough profit for the business to survive
What is a market map
A grid showing you the range of possible positions for two features of a product in a market.
What is a competitve advantage
An advantage gained over competitiors which enables the business to perform better than their competitors
