Unit 5 market research
In this task I have to describe different marketing research techniques in general and describe how a retail business can use it to identify its target market considering the following subjects:
Identify target markets;
Identify customer needs;
Determine sales trends;
knowledge of competitors’ position in the market;
to evaluate existing promotions
Market segmentation:
socio-economic groups;
lifestyle
Market research techniques
P2. how a retail business uses market research to indentify its target market.
What is market research and why do organisations do market research:
First let me explain what market research is. Market research is a business strategy to gather information about their organisation and their market (group of potential buyers). So that they can identify their target markets (target market means a group of potential buyers that an organisation has aimed/decided to serve/sell to), identify their consumer needs, determine the sales trends, gain knowledge of competitors (their position in the market) and so that they can evaluate existing promotions (if the promotion has worked or what they need to improve, etc…).
What does a retail organisation do when identifying target markets?
Well, to be able to tell the difference between different kinds of consumers they need to indentify their target market by splitting the market up into parts/smaller group of buyers, which is called market segmentation. There are different kinds of market segments such as:
Geographic segment - means dividing the market geographically into groups such as, nations, states, regions, countries, cities, neighbourhoods, or zip codes.