Market Research

• What do businesses want to know about a market?

  The structure of a market
• What is market share?

  The proportion of total sales controlled by a business
• What does market size refer to?

  Potential buyers or total product value
• What is market segmentation?

  Dividing people into different groups within a market
• What is a target market?

  The specific group a product is aimed at
• How does market research help firms?

  It helps understand customers and competitors
• What does market research help create?

  A good marketing mix
• How can market research prevent costly mistakes?

  By avoiding overproduction of products
• What are the four ways to segment a market?

  1. Age
  2. Income
  3. Location
  4. Gender
• Why do customers of different ages need different products?

  Because their needs vary with age
• How does income affect purchasing behavior?

  It influences what people can afford to buy
• Why do people in different locations want different products?

  Because of varying local needs and preferences
• What are the three benefits of identifying customer needs?

  1. Increase sales through adjusted pricing
  2. Stay competitive by understanding competitors
  3. Create targeted marketing for effectiveness
• What is a market opportunity?

  A need of customers that isn't being met
• How can products be targeted based on gender?

  By designing products specifically for men or women
• What are the four ways to meet customer needs before competitors?

  1. Develop a new product
  2. Sell an existing product at a new price
  3. Sell an existing product in a new place
  4. Promote the product differently
• What is primary market research?

  Research involving direct information from customers
• What are examples of primary research methods?

  Surveys, questionnaires, focus groups, interviews
• What is secondary market research?

  Research using data collected by others
• What are advantages of secondary research?

  Cheaper, easily found, readily available
• What are disadvantages of secondary research?

  Often out of date, not always relevant
• What are advantages of primary research?

  Up-to-date, relevant, specific to a product
• What are disadvantages of primary research?

  Needs large samples, often expensive, time-consuming
• What is quantitative data?

  Information that can be measured or reduced to a number
• What is qualitative data?

  Information involving people's feelings or opinions
• Why is it important to have both quantitative and qualitative data in market research?

  It provides a comprehensive understanding of the market