Market research

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Market research
1 Market research = gather info to understand present + future customer needs + factors affecting market place to reduce risk
1.1 To:
1.1.1 quantify potential demand
1.1.2 understand how much ppl willing to pay
1.1.3 understand customer behaviour
1.1.4 find competitors and their USP
1.1.5 identify key features of business environment e.g. social, political
2 Quantitative data = numerical data, can be statistically analysed
3 Qualitative data = market research based on opinions and feelings
4 Sampling - collecting data from representative group of the target market/whole population
4.1 Random = everyone has equal chance
4.2 Quota = dividing target market into groups depending on consumer characterisitics
4.3 Stratified = proportionately select ppts within groups randomly = accurate
5 Bias = sample doesn't accurately reflect variations in total population
5.1 e.g. too small
6 Secondary research = using previaously gathered, publically available data
6.1 e.g.
6.1.1 Market reports you can buy market trend reports that tell you about consumer attitudes Mintel + Key Note
6.1.2 Government data National + local gov provide detail on population demography
6.1.3 Economic historic forecast data trends in unemployment. useful if sales depend on strong consumer confidence e.g. growth, inflation, consumer spending
6.1.4 Internet search engines are good for highlighting comp
6.1.5 Trade publications specialist magazines report on market trends
6.2 Good
6.2.1 available immediately
6.2.2 often cheaper
6.3 Bad
6.3.1 out of date
6.3.2 inaccurate and unreliable
6.3.3 sometimes expensive
6.3.4 not private
7 Primary research = first hand info involving fieldwork. can be directly related to businesses individual nneds
7.1 e.g.
7.1.1 questionnaire preplanned open +closed q's clear, relevant, logic, detailed, unintrusive
7.1.2 focus group group discussion about product, service, advert = qualitiative
7.1.3 observation Watching + studying potential customers, suppliers + competitors count footfall observe customer shop movement study competition -products, shortfalls etc
7.1.4 Test marketing
7.2 good
7.2.1 up to date
7.2.2 specific
7.2.3 private
7.3 bad
7.3.1 £££
7.3.2 time cosuming collect interpret
7.3.3 interviewer bias
7.3.4 can require specialists
8 Market size = shown by total value/total volume of goods sold
9 Market share = shown by % of market selling to
10 Market growth = increase in market size
11 Market segmentation = markets can be split into groups with distinctive customer preferences
11.1 e.g. age, gender, family status, income, interests, location. culture, occupation, lifestyle etc
12 Mass marketing = businesses that aim products at largest part of market
12.1 good
12.1.1 larger potential market = ;large revenues
12.2 bad
12.2.1 strong comp = low price =low profit
12.2.2 branding + advertising = £££ and difficult
13 Niche marketing = deliberately targeting small group of customers with larger market who share same characteristics/need
13.1 good
13.1.1 low comp = high price = high profit
13.1.2 clear focus - can target particular customers
13.2 bad
13.2.1 dependent on small group of customers = vulnerable
13.2.2 could attract comp if successful
14 Differentiated products = have distinctive features - diff from comp
14.1 distinct image - unique characteristics/marketed differently
15 market positioning = the way a product is perceived compared with comp. Helps business make decisions about how product range matches customer preferences or appeals to diff market segments
16 Market map = plots brands in the market according to how they meet customer needs so business can position individual products effectively
17 Gap in the market = scope for new product not currently being provided
18 Repositioning = targeting diff market segments where individual features are more suitable to needs of customer
19 Comp advantage = any factor that helps business beat competition e.g price, innovation, rep, reliability
20 added value = diff between price charged + total input cost. Including improvement of product/market perception
21 Comp
21.1 Good
21.1.1 loyal customers
21.1.2 reduce price/promote til competitor gives up
21.1.3 long term customer contracts e.g. phone
21.1.4 already invested e.g. need complements
21.2 Bad
21.2.1 high price
21.2.2 low quality
21.2.3 poor availability
21.2.4 outdated
21.2.5 poor promo

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