what are disadvantages to secondary market research
outdated
not specific
can be unreliable due to bias
why is it important for data to be reliable
so businesses can make accurate business decisions, therefore reduce the risk of business failure
how can a market be segmented
lifestyle
age
income
demographics
location
gender
what are advantages of market segmentation
meet specificcustomerneeds
differentiate its products
what are disadvantages of market segmentation
can be expensive to offer a range of products that meet all customer needs
can miss other opportunities if you focus on ne group
characteristics change overtime e.g. income and demographics
what is market mapping
a diagram that can be used to position and compare products in a market
what are the advantages of market mapping
can identify gaps in the market(opportunities)
can identify competitors
what are disadvantages of market mapping
based on opinions rather than accuracy
compares businesses on 2 variables(too simple)
what is a competitor
any business that sells the same or similar products or services
what are the methods to compare a competitive market(strengths and weaknesses in competitors)
price
quality
design
location
product range
customer service
brand image
what is differentiation
making a product different from others
how does product differentiation help a business
gain a larger competitive advantage(gain a larger market share)
what is a competitive market
a market with a large number of businesses relative to the number of potential customers or when competition is high when the competitors sell similar products and services that are hard to differentiate
how does competition impact decision making
businesses have to offer good quality and reasonable price, and also innovate new ideas to meet customer needs