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What are the four main customer needs?

Quality, choice, convenience and price.

What does quality mean for customers?

Products that work well, last, and meet expectations.

What does choice mean?

Having a range of products, styles, sizes or options to pick from.

What does convenience mean?

Easy to buy — location, delivery, opening times, speed.

What does price refer to?

Customers want good value for the money they spend.

What is market research?

The systematic process of gathering, analysing, and interpreting information about a market, customers, and competitors to help a business make better decisions, reduce risk and find market opportunities.

What is primary research?

Data collected first-hand for a specific research purpose.

Name two methods of primary research.

Questionnaires, interviews, focus groups, observations.

What is secondary research?

Data that already exists that has been collected for a different purpose.

Name two sources of secondary research.

Internet, newspapers, government reports, market reports.

What is sample size?

Number of people questioned for research purposes.

What is qualitative research?

Research based on opinions and reasons (e.g. focus groups).

What is quantitative research?

Research based on numbers/data (e.g. surveys with statistics).

What is market segmentation?

Involves dividing a market into parts that reflect different customer needs and wants.

Name the 4 types of market segmentation.

Demographic (age, gender, income), Psychographic (lifestyle, attitudes, values), Geographic (country, region), Behavioural (usage, loyalty, benefits).

Why is segmentation useful?

Helps target products and marketing to specific customer needs.

What is a market map?

Illustrates the range of positions that a product can take in a market based on two dimensions that are important to customers.

How does market mapping help decisions?

Shows gaps in the market and what competitors offer.

What is a competitive environment?

Where a business operates in a market where other businesses produce the same or similar goods and services.

Name five ways businesses compete.

Price, quality, location, product range, customer service.

How does price affect competition?

Lower or better-value prices attract more customers.

How does quality impact decisions?

Better quality increases customer satisfaction and loyalty.

Why does location matter?

Convenience and visibility influence sales.

What is product range?

Offering a variety of products to suit different needs.

How does customer service help competition?

Good service keeps customers loyal and improves reputation.

Direct competition

They sell the same type of product.

Indirect competition

Different products or services but still compete with each other.