business chapter 4 test

What types of data can be collected through market research?

Primary and secondary data are collected through market research. Have students give examples of both.

data that help a business determine where its potential customers live and how far they will travel to visit the business ex: If you were thinking of opening a coffee shop, it would be important for you to know that people are not willing to drive more than one mile for coffee.

geographic data

data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits ex:People who prefer to live in a downtown setting and whose musical preference is jazz would be an example of a market segment based on

phsychographics

information collected for the very first time to fit a specific purpose. A researcher collects this data to help identify and understand the target market.

primary data

The most common type of primary market research is a __________, or _____________.

questionnaire or survey

data found in already-published sources. Data on population, family size, household income, economic trends, industry forecasts, and other information

secondary data

a form of Internet marketing that utilizes social networking sites as a marketing tool

social media marketing

____________ and __________ are used for collecting and analyzing market research data.

spreadsheets and databases

a list of questions to ask customers to find out demographic and psychographic information; can be conducted by mail, over the phone, on the Internet, or in person.

survey

an in-depth interview with a group of target customers who provide valuable ideas on products or services

focus group

what are places to find secondary data.

- Publications issued by government and community organizations -Books about specific industries -Information on websites for government and businesses -Books about other entrepreneurs who set up similar businesses -Trade magazines and journals -Newspaper articles and statistics

why is a focus group different than a survey?

. You can ask the same kinds of questions in a focus group that you would ask in a survey, but the group setting allows for more discussion and interaction. Focus groups usually are led by a moderator, who asks questions about buying habits, likes and dislikes, and interests in particular products and services.

conducting primary market research involves which six steps.

1. define the question 2. determine the Data needed 3. collect the data 4. analyze the data 5. take action 6. evaluate the results

What are some strategies for maintaining customer loyalty?

Answers will vary and may include listening and responding to customer feedback, giving superior service, having convenient hours, and so forth.

_____ uses technology to track customer interactions and to organize business processes in a way that will produce customer-satisfying behaviors.

CRM

what type of data are customers profiled based on?

Customers may be profiled based on many types of data, including demographics, psychographics, use-based data, and geographic data.

What are the goals of CRM and social media marketing?

The goal of CRM is to increase profitability and customer satisfaction, and the goal of social media marketing is to produce content that users will share with their social network to help a company increase exposure and reach more consumers.

why is the process of market segmentation important

The process of market segmentation is important because most products and services appeal to only a small portion of the population.

What is the purpose of a competitive analysis?

The purpose of the competitive analysis is to help you figure out what you can do that is different from competitors to get customers to buy from your business.

Why is it important to understand the competition your business faces?

Understanding your competition helps you define your target market and find unmet customer needs.

To identify the target market for your product or service, you will need to answer the following questions:

Who is my potential market? If my customers are individuals, how old are they? How much money do they earn? Where do they live? How do they spend their time and money? If my customers are companies, what industries are they in? What needs or wants will my product or service satisfy? How many potential customers live in the area in which I want to operate? What is the demand for my products or services? Where do these potential customers currently buy the products or services I want to sell them? What price are they willing to pay for my products or services? What can I do for my customers that other companies are not already doing for them?

identifying and examining the characteristics of a competing firm

competitive analysis

a description of the characteristics of the person or company that is likely to purchase a product or service

customer profile

a company's efforts to understand customers as individuals instead of as part of a group

customer relationship management (CRM)

data that describe a group of people in terms of age, marital status, family size, ethnicity, gender, profession, education, and income Women business owners between the ages of 25 and 40 who earn at least $50,000 per year would be an example of a market segment based on demographic data.

demographics

a business that makes most of its money selling the same or similar products or services to the same market as other businesses

direct competition

a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses

indirect competition

___________ __________ can be used by a business to identify market segments.

market research

a system for collecting, recording, and analyzing information about customers, competitors, products, and services

market research

groups of customers within a large market who share common characteristics

market segment

As an entrepreneur, you will need to estimate demand for your products or services by identifying your _______

target customers

______ _______ are the customers you would most like to attract

target customers ex: For example, a car dealer selling moderately priced minivans would target middle-class families with children, whereas a car dealer offering expensive sports cars might target single people with higher incomes.

Identifying your _____ ______ helps you reach the people who desire your products and services.

target market

the individuals or companies that are interested in a particular product or service and are willing and able to pay for it

target market

T or F Another way to find out about the market is by conducting interviews with small groups of people.

true

T or F Collecting primary data can be time-consuming and expensive, but it is extremely valuable.

true

T or F For your business to succeed, you need to identify potential markets, analyze demand, and determine how much customers are willing to pay for your products or services.

true

data that help a business determine how often potential customers use a particular service ex: If you were starting a travel agency, you would want to know how often your potential customers travel.

use-based-data