Understanding Markets and Customers

Flashcards on Marketing Management

Primary Research

Data collected first-hand for a specific research purpose.

Secondary Research

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

Focus Group

A form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Market Size

Indicates the potential sales for a firm, usually measured in volume and value.

Market Growth

A key indicator for existing and potential market entrants, calculated using value or volume.

Market Share

Explains how the overall market is split between competitors, calculated based on market value or volume.

Sampling

Involves gathering data from a sample of respondents representative of the population.

Random Sampling

Every member of a population has an equal chance of being selected.

Quota Sampling

Respondents are selected based on specific characteristics (age, income, location).

Stratified Sampling

The researcher divides the target group into sections, each representing a key group that should be present in the final sample, ensuring respondents are representative of the whole market.

Correlation

Looks at the strength of a relationship between two variables.

Positive Correlation

A positive relationship where, as one variable increases, so does the other.

Negative Correlation

A negative relationship where, as one variable increases, the other decreases.

No Correlation

There is no discernible relationship between the independent and dependent variable

Confidence Interval

A percentage probability that an estimated range of possible values includes the actual value being estimated.

Extrapolation

Uses trends established from historical data to forecast the future.

Elasticity

Measures the responsiveness of demand to a change in a relevant variable, such as price or income.

Price Elasticity of Demand (PED)

Measures the extent to which the quantity of a product demanded is affected by a change in price.

Income Elasticity of Demand (YED)

Measures the extent to which the quantity of a product demanded is affected by a change in income.