topic 9- unit 4

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what's the purpose of market segmentation?
so the business can design products that meet needs and circumstances of particular groups and target its marketing
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what are 3 main ways to segment a market?
by geographical area, behaviour and demographics
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what must a marketing department examine?
the impact of shared characteristics within a market segment on marketing mix
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how do large providers easily gain info on market segments?
access to customer databases means they can use this to place customers in different segments
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what is meant by the personal current account is a generic product that has been differentiated?
this has developed into a suite of products with differentiated features that appeal to different segments
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how do banks differentiate their current accounts to suit the needs of different market segments?
by focusing on the shared characteristics of the market segment they're targeting
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what are the 3 shared characteristics of the market segment with the financial services market?
income, stage in life cycle and loyalty
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what are examples of add ons usually aimed at higher income segments?
relationship manager, worldwide travel insurance and mobile phone insurance
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what are teh 4 main criticisms of packaged current accounts?
misselling, monthly fee, duplicate coverage and limited insurance cover
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according to the FCA, what should providers do to ensure the packaged account meets the needs of each individual customer?
check theyre eligible to make claims under each policy, send customers annual statements explaining how to claim and ensure advisers check whether each policy is appropriate or not
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what is cash back?
service offered by some retaillers when customers pay by card, retailler gives customer cash and debits the amount of cash handed over from card
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what are rewards programmes?
type of loyalty products used with credit or charge cards. customers build up points when they use product and can exchange for a wide range of goods and services
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what is market research?
action or activity of gathering info about consumers' needs and preferences
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what is secondary research?
research based on data that already exists. carried out by someone in past for different purpose
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what is internal secondary research?
data that has been produced by provider itself. it was orginally primary data and can be used later on to be consulted and conclusions drawn from it
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what is external secondary data?
data published by orginsations such as Keynote or Mintel which providers can use for their own research
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what is primary research?
original research carried out by provider themselves which is tailored to its own specifications (also known as field research)
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what is a disadvantage of primary research?
more expensive to carry out than secondary
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what is an advantage of primary research?
provides more accurate and relevant data than secondary
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what is quantitative data?
research based on gathering and analysing statistics
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what is qualitative data?
research based on gathering and analysing people's feelings and opinions
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what are the 4 main methods of primary research?
interview, questionnaire, mystery shoppers and focus groups
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what is meant by an interview allows open ended questions?
an open ended question means interviewer can draw out a more revealing answer
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what is cold calling?
telephone calls that weren't requested by person being called, commonly used for market research and sales
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what is sampling?
choosing certain number of people (sample) to represnent total population. often carefully selected to make sure it's proportionate to customer base
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what is a focus group?
good way of gathering qualitative data. small group of customers or potential ones (around 10) who are brought together by market research firm to discuss their feelings about a product or service
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what is mystery shopping?
technique used by market research firms, consumer protection orgs and providers themselves. it's a way of monitoring and measuring customer experience and of identifying problems so tehy can be improved
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why is mystery shopping an effective way of conducting primary research in financial services market?
the data that the mystery shopper gathers will allow the market research company/provider to produce quantitative and qualitative reports. they can make comparisons and compare performance of provider over time
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what method of primary research isn't suitable for financial services market?
observation
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what is product development?
process by which firms create new products that are different from firm's existing product and those of competitors. might be given new characteristics
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what is telematics technology?
technology that allows personalised insurance policies to be created based on when and how you drive. also known as black box insurance
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Card 2

Front

what are 3 main ways to segment a market?

Back

by geographical area, behaviour and demographics

Card 3

Front

what must a marketing department examine?

Back

Preview of the front of card 3

Card 4

Front

how do large providers easily gain info on market segments?

Back

Preview of the front of card 4

Card 5

Front

what is meant by the personal current account is a generic product that has been differentiated?

Back

Preview of the front of card 5
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