market research

Customer needs Market Research Market Segmentation The Competitive Environment

what is Customer needs

The wants and requirements of customers including price quality choice convenience and service.

Why are customer needs important?

Meeting customer needs increases sales loyalty and competitiveness.

What are the main customer needs?

Price quality choice convenience and good customer service.

Price as a customer need

Customers want good value and affordability depending on their budget.

Quality as a customer need

Customers expect products to be reliable durable and of a good standard.

Choice as a customer need

Customers like a range of products variations and options.

Convenience as a customer need

Customers want easy access fast delivery and simple purchasing.

Customer service as a customer need

Helpful reliable support that increases customer satisfaction and repeat purchases.

What is market research?

The process of gathering information about customers needs competitors and the market.

Why is market research important?

Helps reduce risks understand demand identify gaps and support business decisions.

What is primary research?

Original research collected first-hand such as surveys interviews observations and focus groups.

Advantages of primary research

Specific up to date relevant data collected for the business’s purpose.

Disadvantages of primary research

Expensive time consuming requires skills to collect and analyse.

What is secondary research?

Using existing data such as reports internet newspapers government statistics and competitors.

Advantages of secondary research

Cheap quick easy to access large amounts of information available.

Disadvantages of secondary research

May be outdated not specific to business biased or unreliable.

What is quantitative research?

Numerical data such as statistics percentages and graphs used to identify patterns.

What is qualitative research?

Descriptive opinions and feelings used to understand customer motivations.

What is market segmentation?

Dividing the market into groups of customers with similar needs or characteristics.

Why is segmentation useful?

Helps target products marketing and pricing more effectively increasing sales.

Segments by demographics

Age gender income job education level household size.

Segments by location

Country region city urban or rural areas.

Segments by lifestyle

Interests hobbies activities attitudes opinions personality.

Segments by income

Customer earnings which influence spending power and product choice.

Segments by age

Products targeted at children teenagers adults or older customers.

What is the competitive environment?

The level of competition a business faces from other firms in the same market.

How does competition affect price?

More competition forces businesses to lower prices or offer better value.

How does competition affect quality?

Businesses must improve quality to attract customers when rivals are strong.

How does competition affect product range?

Businesses offer wider choice or new products to stand out from rivals.

How does competition affect customer service?

Competitive markets encourage better service to keep customers loyal.

Benefits of competition for customers

Lower prices better quality more choice improved service.

Challenges of competition for businesses

Reduced profits need to innovate increased pressure to cut costs and improve.

How businesses respond to competition

By differentiating improving quality lowering prices better marketing or innovation.