MARKET RESEARCH & SEGMENTATION

• What is primary research?

  Primary research is data collected first hand for specific research purpose.
• What is secondary research?

  Using existing data and information that has been collected by others for a different research purpose.
• What is qualitative research?


  Based on peoples opinions, attitudes, beliefs and intentions; answers questions 'why' or 'would'. Is expressed in words.
• What is quantitative research?

  Research that uses numerical data and addresses questions such as how who when and where. It can be measured and is written down in numbers.
• what is sampling?


  Involves the gathering of data from a subset of individuals or items from a larger population and should be representative of the population and target market as a whole.
• what is a sample?


  A group of representative subsets or portion of a larger population or group that have been chosen from a larger group for investigation.
• what is random sampling?

  A method of selecting a subset of individuals from a larger population in a way that each individual has an equal chance of being selected for an investigation.
• What is market growth?

  The rate of change of market size, which may be rising, falling or remaining stable.
• How do you calculate market growth?

  New market size-original market size X100

  original market size
• What can sampling help to do?

  Sampling can provide statistically valid insights into the profile of the overall population being analysed.
• what are 3 benefits of sampling?

  flexible and quick

  can provide useful research I sights-even with a small sample size

  using sampling before making marketing decisions can help reduce risks and costs
• what are 3 drawbacks of sampling?


  risk of bias

  sample may be unrepresentative

  less useful in frequently changing markets
• what is market segmentation?


  involves dividing a market into distinct groups based on different characteristics to reflect customer needs and wants.
• what are the 4 main ways to segment a market?

  Can segment a market based on demographic, geographic, income and behavioural.
• what are 4 benefits of market segmentation?

  • tailor needs
  • effective marketing mix
  • helps to adapt to changes in markets
  • helps with new product development
• what is mass marketing?

  Where a business targets a large and diverse part of the market with the aim of reaching as many potential customers as possible, where there are similar products offered by competitors.
• what is niche marketing?


  Where a business targets a small, specific segment of a larger market with specialised products or services for customers specific needs and wants.
• What are 4 drawbacks of market segmentation?

  • Time consuming
  • Dynamic markets
  • Are all segments needed?
  • May not always be effective
• What are ways that segments differ?

  • Customer needs and wants
  • How customers buy
  • Knowledge and experience of customers
  • Location of customers
• what is market research?

  Involves the gathering and analysing of information about a market, including customers, competitors, and trends, to make informed business decisions.
• What are 3 positives about primary research?

  • Kept private
  • More detailed insights
  • Directly focused on research objectives
• What are 3 negative of primary research?

  • Time consuming and expensive
  • Risk of bias
  • Sampling may be unrepresentative
• What are 3 positive of secondary research?

  • Free and easy to obtain
  • Quick to access and use
  • Good source of market insights
• What are 3 negatives of secondary research?

  • Can be expensive
  • Not tailored to business' needs
  • Can become out of date quickly
• What are 3 positives of quantitative research?

  • Easy to analyse
  • Provides insights into regular trends
  • Can be compared with data from other sources
• What are 3 negative of quantitative research?

  • Focuses on data rather than explaining 'why'
  • Doesn't explain reasons behind numerical trends
  • May lack reliability if sample size and method isn't valid
• What are 4 positives of qualitative research?

  • Can highlight issues
  • Effective way of testing marketing mix elements
  • Creates useful insights fro businesses
  • Essential for new product development and launches
• what are 2 negative of qualitative research?

  • expensive to collect and analyse
  • based around opinions-may be unrepresentative