Unit 3.2- Understanding markets and customers notes Flashcards

1
Q

What is market research?

A

Market research involves gathering and analysing data relevant to the marketing process.

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2
Q

How can market research be used by managers?

A
  • Analyse the existing position of the business
  • Decide on possible objectives
  • Identify possible actions that could be taken
  • Decide what would be the best action and how they can be implemented
  • Assess how effective marketing decisions have been
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3
Q

What are the 4 stages in the market research process?

A
  • Define problems
  • Develop research plan
  • implement the plan
  • Interpret data and report findings
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4
Q

How would they find out more about customers?

A
Who buys
What they are buying
When are they buying
Why are they buying
Who do they ask for information before buying
Where are they buying
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5
Q

What is the price elasticity of demand equation?

A

%age change in qd / %age change in price

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6
Q

If the price elasticity of demand is more than 1 what does this mean?

A

Elastic

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7
Q

If the price elasticity of demand is lower than 1 what does this mean?

A

Inelastic

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8
Q

What affects the price elasticity of demand?

A
Time
How expensive it currently is
Who is paying - company 
Branding of a product
USP
Patent or trademark
Expensive or difficult to switch to another supplier
Amount of available substitutes
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9
Q

What is the income elasticity of demand?

A

%age change in qd/ %age change in income

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10
Q

If income elasticity of demand if greater than 1 ?

A

The product is luxury

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11
Q

If income elasticity of demand is between 0 and 1 ?

A

The product is normal

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12
Q

If income elasticity of demand is below 1 ?

A

The product is inferior

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13
Q

What other types of plans and decisions throughout the business will a sales forecast affect?

A
  • Cashflow forecast
  • Production levels
  • Marketing budgets
  • Staffing levels
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14
Q

What areas of a business does sales forecasting affect?

A
  • HR
  • Finance
  • Operations
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15
Q

When can market research go wrong?

A
  • There changes in markets
  • The way information is gathered
  • Lack of information from not spending enough
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