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1.1.2 Market Research - Coggle Diagram

- - - - Customer needs differ. Creating separate products for each segment makes sense
    - - Customers have different disposable incomes and vary in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits
    - - Market segmentation can build sales. For example, customers can be encouraged to "trade-up" after being sold an introductory, lower-priced product
    - - By marketing products that appeal to customers at different stages of their life ("life-cycle"), a business can retain customers who might otherwise switch to competing products and brands
    - - Businesses need to deliver their marketing message to a relevant customer audience. By segmenting markets, the target customer can be reached more often and at lower cost
    - - Through careful segmentation and targeting, businesses can often achieve competitive production and marketing costs and become the preferred choice of customers and distributors
- - - - Is up-to-date as it is conducted as required
      - Can be exactly tailored to the needs of the business
      - Can produce data which competitors do not have access to
    - - Can be expensive to carry out
      - Can be time-consuming to carry out and interpret
    - - Observation
      - Questionnaires
      - Telephone interviews
      - Online surveys
      - Focus groups
      - Test marketing
  - - - May be out-of-date
      - Difficult to guarantee accuracy and reliability
      - Some sources can be expensive (e.g. Mintel)
    - - Is available immediately and often inexpensively (or free), compared to carrying out costly primary research
    - - The internet – Google has everything
      - Newspapers
      - Government-produced data
      - Accounts of businesses
- - - - Will be able to anticipate market changes.
      - Will be in a stronger position to meet the challenges of new competition entering the market
      - Will be more confident that the launch of a new product will be more successful.
      - The product may not have to be marketed heavily as there will be more word of mouth with market orientated businesses as it’s meeting needs
      - Respond more quickly to changes in the market because of its use of market information.