Edexcel A-level Business Theme 1
Detailed mind maps on the whole
specification of theme 1
, Market Research must be a Representative
Market research- the collection and analysis of market sample and avoid bias
information - Representative sample: When using primary
Why? research, firms take a sample of a small number of
1. To identify customer needs and wants, both current and people rather than the whole market. Saves time
future needs need to anticipate what they will be in the and money. A sample must represent all ages,
future. genders, incomes, demographic. If money is
2. Allows businesses to predict demand. See how much Theme 1.1 limited, the risk of information being inaccurate
they will have to supply, and if demand is expected to increases.
fall, the business can increase promotion.
The Market - Avoid bias: don’t ask biased questions. The
3. Allows businesses to learn more about costomers interviewee might give a social accepatable
behave in relation to a product, e.g., how coustomers Where a company answer might change the research outcome.
Quantitative data- closed questions that give data
buy the product introduces a new
to be statistically anyalysed makes it
4. How much customers are prepared to payquicker and product, marketing Technology: it makes market research easier,
easier
5. Identifying competitors and the business environment to a limited group of cheaper, quicker and allows the ability to reach a
Qualitative data- more informative are responses customers in a
wider sample of consumers. Can also use Social
specific geographic
can be more felexiable. Most affective data research networking: Facebook and Twitter. Also, using the
area
is a combination of both business'sa own data baseadvantage
can help market
Gaining competitive by adding
Primary Market Research Secondary Market Research research as a much cheaper advatages
value:
surveys, observastions, Government publications, trade This is done by ethier increasing the selling price or
interviews,focus groups, test magazines, market reports such by reducing production costs. The aim is to
marketing, sampling as the MINTEL encourage coustomes to pay higher prices so it
adds value to the product
- Primary research is specific to the - easier, faster and cheaper Adding value= price of the product is
pourpose and is great for a niche - It can be unsuitable. May be sold for- cost of making product
market as secondary might be to broad out of date or have errors
and mainstream - Often used to get an initial
- Exclusive and comopetitirs cant understanding
benefit
- It is labour intensive, expensive and
slow
, Market segmentation: dividing a market into groups of Market Positioning: how coustomers perceive it
buyers with one or more simalarities. Alowing business to compared to competitors bands or products
target their marketing towards specific coustomers using
individuals marketing mix as each segment has different Market Mapping It shows two extremas
wants and needs that are important to coustomers
Demographic segment:
- Age Saga holidays are targeted at people over 50
- Gender yoghurt is targeted towards women
- Socio-economic class modern one-bedroom flats might be
marketed to young professionals
Geographical segment:
Neighbourhood, city, country, world region. Mostly used
by multinational compinies as their coustomers have a Theme 1.1
rage of cultures, lifesty and climate meaning they needThe Market
different marketing mix
Income segment: Chanel is aimied at people with high
incomes and superdrugs own brand is amied at lower-
income people
Behavioual segment: amount of use, lifestyle ( young
workers may tend to buy microwaveable meals to save Market maps can reveal gaps in the markets so that new
time), hobbies and intrest (snakes with high protine content businesses or existing businesses can spot it and fill the
targeted towards people that a physical active and go to the gaps other market research or need to be ducted to find
gym) out if there is demand for the product E dot dot is there a
market for high quality shirts for children
A competitive advantage helps sales and profit Can show a businesses closest competition allowing it to
1. Lower costs adapt his marketing strategy new line It can show who
2. Product innovation/ differentiation product sales are declining
3. Advertising and marketing It can show how much customers expect to pay. Helping
4. Reliability and quality a business with its pricing strategies
5. Convenience good customer service However marketing mapping can be too simplified
The positioning of products on the market is usually a
matter of opinion so may become biassed as different
Detailed mind maps on the whole
specification of theme 1
, Market Research must be a Representative
Market research- the collection and analysis of market sample and avoid bias
information - Representative sample: When using primary
Why? research, firms take a sample of a small number of
1. To identify customer needs and wants, both current and people rather than the whole market. Saves time
future needs need to anticipate what they will be in the and money. A sample must represent all ages,
future. genders, incomes, demographic. If money is
2. Allows businesses to predict demand. See how much Theme 1.1 limited, the risk of information being inaccurate
they will have to supply, and if demand is expected to increases.
fall, the business can increase promotion.
The Market - Avoid bias: don’t ask biased questions. The
3. Allows businesses to learn more about costomers interviewee might give a social accepatable
behave in relation to a product, e.g., how coustomers Where a company answer might change the research outcome.
Quantitative data- closed questions that give data
buy the product introduces a new
to be statistically anyalysed makes it
4. How much customers are prepared to payquicker and product, marketing Technology: it makes market research easier,
easier
5. Identifying competitors and the business environment to a limited group of cheaper, quicker and allows the ability to reach a
Qualitative data- more informative are responses customers in a
wider sample of consumers. Can also use Social
specific geographic
can be more felexiable. Most affective data research networking: Facebook and Twitter. Also, using the
area
is a combination of both business'sa own data baseadvantage
can help market
Gaining competitive by adding
Primary Market Research Secondary Market Research research as a much cheaper advatages
value:
surveys, observastions, Government publications, trade This is done by ethier increasing the selling price or
interviews,focus groups, test magazines, market reports such by reducing production costs. The aim is to
marketing, sampling as the MINTEL encourage coustomes to pay higher prices so it
adds value to the product
- Primary research is specific to the - easier, faster and cheaper Adding value= price of the product is
pourpose and is great for a niche - It can be unsuitable. May be sold for- cost of making product
market as secondary might be to broad out of date or have errors
and mainstream - Often used to get an initial
- Exclusive and comopetitirs cant understanding
benefit
- It is labour intensive, expensive and
slow
, Market segmentation: dividing a market into groups of Market Positioning: how coustomers perceive it
buyers with one or more simalarities. Alowing business to compared to competitors bands or products
target their marketing towards specific coustomers using
individuals marketing mix as each segment has different Market Mapping It shows two extremas
wants and needs that are important to coustomers
Demographic segment:
- Age Saga holidays are targeted at people over 50
- Gender yoghurt is targeted towards women
- Socio-economic class modern one-bedroom flats might be
marketed to young professionals
Geographical segment:
Neighbourhood, city, country, world region. Mostly used
by multinational compinies as their coustomers have a Theme 1.1
rage of cultures, lifesty and climate meaning they needThe Market
different marketing mix
Income segment: Chanel is aimied at people with high
incomes and superdrugs own brand is amied at lower-
income people
Behavioual segment: amount of use, lifestyle ( young
workers may tend to buy microwaveable meals to save Market maps can reveal gaps in the markets so that new
time), hobbies and intrest (snakes with high protine content businesses or existing businesses can spot it and fill the
targeted towards people that a physical active and go to the gaps other market research or need to be ducted to find
gym) out if there is demand for the product E dot dot is there a
market for high quality shirts for children
A competitive advantage helps sales and profit Can show a businesses closest competition allowing it to
1. Lower costs adapt his marketing strategy new line It can show who
2. Product innovation/ differentiation product sales are declining
3. Advertising and marketing It can show how much customers expect to pay. Helping
4. Reliability and quality a business with its pricing strategies
5. Convenience good customer service However marketing mapping can be too simplified
The positioning of products on the market is usually a
matter of opinion so may become biassed as different
