How does market research add to competitive advantage?
Business knows what customers want and think, help find gaps in the market, can improve their products, helps calculate risk
3 of 34
What is primary research?
Information collected by the group or business for thier own personal records
4 of 34
Give examples of primart research
questionnaires, interviews, observations, sales records
5 of 34
Advantages of questionnaires
Relevant and can be used on a large scale
6 of 34
Disadvantages of questionnaires
Open to misinterpretation, easy to lie
7 of 34
Advantages of interviews
Honest answers and reactions, more in depth answers
8 of 34
Disadvantages of interviews
Can be costly, time consuming and resource consuming
9 of 34
Advantages of observations
Can be carried out on large scales
10 of 34
Disadvantages of observations
Time consuming
11 of 34
Advantages of sales records
cheap and effective on large scales
12 of 34
Disadvantages of sales records
Information may be irrelevant
13 of 34
General advantages of primary research
Relevant, reliable, current and private
14 of 34
General disadvantages of primary research
Epensive, resource consuming, possible biased
15 of 34
define secondary research
Data collected by someone else
16 of 34
General advantages of secondary research
Cheaper, quicker, easier, on a larger scale
17 of 34
General disadvantages of secondary research
irrelevant information, out of dat, unreliable
18 of 34
What is sampling?
Taking a portion of the population to survey instead of the whole populatoin
19 of 34
What's random sampling?
Choosing respondents at randsom to get a wide range of views
20 of 34
Advantages of random sampling
Wide range of views - avoids bias
21 of 34
Disadvantages of random sampling
Risk of anomalies
22 of 34
What's structural sampling?
Choosing respondents based on certain characteristics
23 of 34
What's quota sampling?
Selecting respondents because of their similarities to the target demographic group
24 of 34
What's cluster sampling?
Selecting respondents in specific ares
25 of 34
Define market segmentation
Breaking up the larger markert into smaller groups due to special characteristics
26 of 34
Why market segment?
to suit customers needs better, more opportunity for growth, more effective advertisement, gain higher share of the market
27 of 34
How can you segment a market?
age, gender, income, social class, location
28 of 34
Limiations of segmentation
Lack of information, difficult to predict consumer behaviour, hard to reach consumer segments once identified
29 of 34
What's market mapping?
illustrating potential positions for a product in a market by comparing 2 factors within the market
30 of 34
Advantages of market mapping
spots gaps in the market, allows analysis of competition, product placement
31 of 34
Disagvantages of market mapping
Just because there's a gap doesn't mean there's a demand, no guarantee of success, not reliable
32 of 34
What's test marketing?
The product or service is released into a limited area to see how it competes in the real market
33 of 34
Advantages of test marketing
can see how the product stands in the market, brings in revenue, analyse competition, can see real profit levels, can test out best way to maket the products
34 of 34
Other cards in this set
Card 2
Front
What is quantitative data?
Back
Numerical data, can be analysed easily
Card 3
Front
How does market research add to competitive advantage?
Comments
No comments have yet been made