IB Business 4.3-4.4
Terms in this set (30)
It shows the degree to which two sets of buyers of variables are related, e.g. sales revenue over a period of time. Marketers are interested in establishing a strong correlation between marketing expenditure and sales growth.
They are recurrent fluctuations in sales linked to the economic cycle of booms and slumps. Unlike seasonal variations, cyclical variations can last longer than a year.
It is a forecasting technique used to identify the trend by using past data and extending this trend to predict future sales.
They are used to find underlying trends by something out variations in a data set caused by seasonal cyclical and random variations. It is common to use up to four- part moving averages, i.e. averaging sales figures for four consecutive time period.
It is a quantitative management technique used to predict a firm's level of sales over a given time period.
They are periodic fluctuations in sales revenue over a specified time period, such as certain months or quarters of the year.
They are unpredictable fluctuations in sales revenue caused by erratic and irregular factors that cannot be practically anticipated.
Time series analysis
It is a sales forecasting technique that attempts to predict sales level by identifying the underlying trend from a sequence of actual sales figures.
They are periodical publications from educational and research institutions that publish data and information relating to a particular academic discipline.
It is used when getting feedback from respondents involves too much time, travelling or money. For example, it would be too time-consuming and costly for a company to randomly interview people across all the countries that it operates in.
It uses subjects that are easy (convenient) to reach, e.g. students often use their classmates and friends in a research study. It relies on ease of reach and volunteers because of their availability.
They involve forming small discussion groups to gain insight into the attitudes and behaviours of respondents. The group is typically made up of participants who share a similar customer profile, such as teenage boys who like to play online computer games.
They are a type of primary research the involves discussion between an interviewer and interviewees to investigate their personal circumstances and opinions. Beliefs, attitudes and feelings can be examined in detail.
it reveals the characteristics and the outlook (trends) for a particular product or industry, e.g. market size, market share and market growth rate.
it refers to marketing activities designed to discover the opinions, beliefs and preferences of potential and existing customers in order to identify and anticipate their wants and needs.
They are caused by human error or human behaviour. They arise from the researcher's mistakes in recording, processing or analying data, or because respondents do not always give truthful and honest answer.
They are methods of primary research that involves watching how people respond or behave in different situations. It can be done under controlled conditions (like a laboratory test) or as real-life situations (where people do not know that they are being watched).
The word, in marketing terms, refers to all potential customers of a particular market.
Primary research (field research, bespoke research)
It is market research the involves fathering new data first-hand for a specific purpose. Methods of primary research include: surveys (questionnaires), interview, focus groups and observations.
Qualitative market research
It involves getting non-numerical answers and opinions from respondents. The main purpose is to understand the behaviour, attitudes and perceptions of customers, employees or other respondents.
Quantitative market research
It is about collecting and using factual and measurable information rather then opinions.
It is the most common sampling method, involving a certain number of people (known as the quote) from different market segments being used fro research.
It gives everyone in the population an equal chance of being selected for the sample.
It is a selected proportion of the population used for primary market research purpose.
They are caused by mistakes made in the sample design, such as unrepresentative sample being used or the sample size being too small.
Secondary research (desk research)
It involves the collection of second-hand data and information that already exists, previously gathered by others. Examples include government publications and news articles.
It refers to market research carried out with individuals who then suggests other friends, family members or colleagues, thereby increasing the sample size. it is used when firms are unable to get hold of appropriate respondents as the population is not clear.
It involves subdividing the market into segments (known as strata) that share homogenous or very similar characteristics. A number of respondents from each stratum that is proportional to the population is then randomly selected for the sample.
It is a document that contains a series of questions used to collect data for a specific purpose. It is the most common method of primary research.
Reasons of doing market research
1. Reduce risks associated with new product launches
2. Predict future demand changes
3. Explain patterns in sales of existing products and market trends
4. Assess customers' needs and wants