Topic 1.2

Question 1

What are customer needs?

Answer 1

-price
-quality
-choice
-convenience

Question 2

What is the importance of understanding customers?

Answer 2

-generating sales
-business survival

Question 3

What is the purpose of market research?

Answer 3

-to identify and understand customer needs
-to identify gaps in the market
-to inform business decisions
-to reduce risk

Question 4

What are the methods of market research?

Answer 4

Primary and Secondary

Question 5

How do you conduct Primary research? And what is the benefit?

Answer 5

• survey, questionaire, focus group, observation
• more catered toward the company but can be expensive and take time to do

Question 6

How do you conduct Secondary research? And what is the benefit?

Answer 6

• internet, market reports, government reports
  -cheap and easy to collect, sometimes outdated and not specific

Question 7

How do business use market segmentation to target customers?

Answer 7

• Identifying market segments: location, demographic, lifestyle, income, age
• identify a gap in the market and the competition

Question 8

How can a business understand the competitive environment?

Answer 8

• strengths and weaknesses of competitors based on: price, quality, location and product range
  -impact of competiton on business decision making

Question 9

What is Qualitive data?

Answer 9

Qualitative data refers to non-numerical information that captures characteristics, descriptions, and qualities

Question 10

What is Quantitative data?

Answer 10

Quantitative data is, quite simply, information that can be quantified. It can be counted or measured, and given a numerical value—such as length in centimeters or revenue in dollars.