The gathering of information about consumers needs and preferences
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How might market research be used?
To analyse the existing position of the business, decide on marketing objectives, identify actions to be taken and how to implement them, assess how effective marketing decisions have been
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What is the market research process?
Define problems, develop research plan, collect and analyse data, interpret data and report findings
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What does market research provide an insight into?
When, what, why, where and who buys a product and the factors that influence their decision to buy
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What are the 4 main factors that influence someones decision to buy?
Personal, economic, social and technical
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How can market research help make a business competitive?
They will know what products customers want, what benefits to offer and how to communicate them. This allows them to provide better value for money than competitors
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What is a target population?
All the people a manager might want to interview
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What is sampling?
A representative group of people from the target population
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What are the benefits of sampling?
Provides an insight into the market, saves money, quicker than testing whole market
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What are the risks of sampling?
If research is badly undertaken it may not represent the whole market
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What is market mapping?
Customers are asked to rate a product in term of different characteristics (typically 2). The results are then plotted against each other to compare the products
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What is correlation?
The relationship between one factor and another
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What is extrapolation?
Looking at what has happened in the past and continuing this trend into the future, assuming conditions don't change
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What is a confidence level?
How certain they are in the results recieved
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What is price elasticity of demand?
The effect of price change on the quantity demanded
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What is the equation for price elasticity of demand?
Percentage change in quantity demanded / percentage change in price
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What does a value less than 1 mean?
Inelastic - a given percentage change in price leads to a smaller change in quantity demanded
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What is the effect of demand being price inelastic if prices are raised?
Revenue increases
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What is the effect of demand being price elastic if prices are raised?
Revenue falls
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Other cards in this set
Card 2
Front
How might market research be used?
Back
To analyse the existing position of the business, decide on marketing objectives, identify actions to be taken and how to implement them, assess how effective marketing decisions have been
Card 3
Front
What is the market research process?
Back
Card 4
Front
What does market research provide an insight into?
Back
Card 5
Front
What are the 4 main factors that influence someones decision to buy?
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