Market Research
A successful business must understand what the customers need which includes: Price, Quality, Choice, and Convenience.
Tell me how price informs the business in this case.
It tells the business how much the customers are willing to pay for the product.
What is a focus group?
A group that is brought in by a business to review a specific product and give their direct feedback.
What is Market Segmentation?
Market Segmentation involves dividing an entire market into smaller customer groups.
How is Location defined in Market Segmentation?
Customers wants or needs can vary depending on location, so businesses need to understand regional variances in taste and demand.
For example, people that live in Nebraska will need winter coats, while people that live in Florida most likely do not need heavy winter coats.
What do strengths identify?
Strengths identify internal factors that have a positive effect on the business.
A successful business must understand what the customers need which includes: Price, Quality, Choice, and Convenience.
Tell me how quality informs the business in this case.
Customer’s quality expectations for a product, meaning is it a high-quality product or is it a low-quality product.
Example: Mcdonald's is considered a low-quality burger, yet that is the quality that customers are expecting.
What is Primary Research?
Primary research is research that is carried out first-hand by the researcher to collect new marketing information from customers, potential customers, or potential retailers.
This means the information is coming directly from the people who are using the product.
Why is Market Segmentation helpful?
Market Segmentation is a great way for businesses to identify smaller groups of customers with common wants or needs.
How is Income defined in Market Segmentation?
Income Levels have a big bearing on what customers are willing to pay for a product. Businesses frequently offer different products and brands to customers with different budgets.
For example, most people will not look at buying a high-end luxury car, as they cannot afford it due to the amount of money they make. That means these cars are advertised to people who make a lot of money.
What do weaknesses identify?
Weaknesses identify internal factors that have a negative effect on the business.
A successful business must understand what the customers need which includes: Price, Quality, Choice, and Convenience.
Tell me how choice informs the business in this case.
The options available to customers selecting a product. Meaning do the customers have a lot of options to pick from or not?
Example: At McDonald's, there are a lot of options, while at Raising Canes there are not. This means that McDonald's has a better choice selection.
What is Secondary Research?
Secondary research is research that involves accessing data that already exists. This information has been collected by a third party in the past. It can provide important information on the market and help businesses analyze previous trends and provide a forecast.
This means that the information is coming from things like reviews online or articles that have been written about the product.
What are the BIG FOUR demographics we discussed in class?
Location, Income, Lifestyle, and Age
How is Lifestyle defined in Market Segmentation?
Customer interests and lifestyles are constantly evolving. Therefore, businesses try to recognize trends and identify groups of customers with similar interests sot hey can target them with specific products and messaging.
For example, a business that sells protein bars will most likely target people who care about health and fitness.
What do opportunities identify?
Opportunities identify external factors that have a positive effect on the business.
A successful business must understand what the customers need which includes: Price, Quality, Choice, and Convenience.
Tell me how convenience informs the business in this case.
This means how easy is it for customers to purchase a product.
Example: Amazon makes it extremely easy to purchase anything you could need with their app and it is sent directly to you.
How is social media important in marketing research?
Social media users often follow pages relating to products and services that they like and provide valuable feedback in comments sections and reviews.
What is an example of a product that targets lifestyle?
Answers may vary
Example: Golf brands will target golfers and golfers only, as their products are not of interest to people who do not golf.
How is Age defined in Market Segmentation?
People of different ages have different interests, tastes, and budgets. Therefore, a business often segments its market by age to create tailored products and messages to suit each age group.
For example, a retirement home would be advertised to people who are older, retired, and don't want to care for a home anymore and not for a family with two kids.
What do threats identify?
Threats identify external factors that have a negative effect on the business.
Why must businesses identify gaps in the market?
Because customers’ unfulfilled needs create a gap in the market that can be filled by launching a new product, updating an existing one, or promoting it in a different way.
What is Qualitative Data and what is Quantitative Data?
Qualitative: This involves asking people open questions about their views and opinions.
Quantitative: This involves asking closed questions, which require specific answers, such as “yes” or “no”, or answers that are measurable or expressed numerically.
What is a product that targets age groups?
Answers may vary
Example: Video games are something that are typically advertised to younger people as compared to older people.
What is Market Mapping and how is it useful?
Market mapping is a useful tool for understanding a business’s position within a market. It can help identify gaps (opportunities) in the market and reveal how customers perceive similar products sold by competitors.
Give an example of a strength, weakness, opportunity, and threat for different businesses.
(They may be different businesses for each example)
Answers vary