4.4.25 Market Research: Segmentation, Methods, and Costs/Benefits

Flashcards reviewing market segmentation, target marketing, research methods (desk vs field), and costs/benefits of market research.

What is target marketing and how does it benefit businesses?

Target marketing focuses marketing efforts on specific customer segments, allowing tailored products and messages, leading to more efficient marketing, higher conversion rates, and better return on investment.

What are the main types of market segmentation?

Location, age, gender income, lifestyle

What are desk research and field research in market research?

Desk research (secondary data) uses existing information; field research (primary data) collects new information directly from respondents.

What is desk research? Give examples of sources.

Desk research is the collection of secondary data from existing sources such as published reports, databases, government statistics, and industry studies.

What are common field research methods?

Personal interviews, telephone interviews, online (internet) surveys, mail (postal) surveys, and focus groups.

What are the costs associated with market research?

Costs include time, money, and effort, as well as potential biases, sampling errors, and misinterpretation of data.

What are the benefits of market research?

Informs decision-making, reduces risk, improves understanding of customer needs, and enhances product-market fit and competitiveness.