Market Research
What is market research?
Organized way to gather and analyze info for business decisions
What is a target market?
Specific group most likely to buy your product
What is a competitor?
A business offering similar or substitute products
Name 3 of the 5 P’s
People, Product, Place, Price, Promotion
A snowboard company advertises heavily in Florida. What mistake did they make?
Poor target market selection
What are the 3 main areas of market research?
Customers, Competition, Business Environment
What is a customer profile?
Detailed description of target customer characteristics
Difference between direct and indirect competitors?
Direct = same product, Indirect = different product but same need
What is the difference between features and benefits?
Features = what it is, Benefits = what it does for the customer
A business reads Yelp reviews to understand customers. What type of data is this?
Secondary data
What is the difference between primary and secondary data?
Primary = collected firsthand, Secondary = already existing data
What is the difference between B2C and B2B?
B2C = sells to individuals, B2B = sells to businesses
What is competitive advantage?
What makes your business better than competitors
What is “Place” in marketing?
Where/how product is sold or delivered
A company surveys 50 students about a new cereal flavor. What type of research?
Primary research
Why is market research important before starting a business?
Helps avoid costly mistakes and test assumptions
Name the 3 types of market segmentation
Demographics, Geographics, Psychographics
Why is competing only on price risky?
Competitors can lower prices and hurt your profits
What pricing strategy focuses on what competitors charge?
Competition-based pricing
A restaurant adds vegan options to stand out. What is this called?
Differentiation / Competitive advantage
A company assumes customers want online tutoring but they actually prefer in-person. What went wrong?
They failed to test assumptions with market research
Why is mass marketing NOT ideal for most small businesses?
Too expensive and inefficient; better to focus on a niche
A business offers faster delivery AND higher quality than competitors. What is this an example of?
Strong competitive advantage
Explain AIDA
Attention, Interest, Desire, Action
A company bundles flights, hotel, and rental car into one price. What is this strategy?
Bundling