Unit 1 Mock
1a) Market segmentation is the classification of potential customers into groups, each of which responds differently to different products or marketing approaches.
b) An electronic market is where the sales occur only electronically. An example of this would be selling electronic copies of magazines, newspapers to be read on electronic devices.
c) Adding value is the process of increasing the value of a product. This can be done through many ways such as better packaging. Some would argue that personalizing T-shirts would add value towards the product for many reasons. The fact that being able to personalise a T-shirt is a product differentiator and adds features (USPs) which other competitors may not have. This would allow Pierre to increase the selling price of his T-shirts because there will almost certainly be a higher demand.
d) i) Done on sheet. ii) Done on sheet
1e) Primary market research is research that has been carried out by the business or individual. It is specific to only that business so therefore it is more accurate than secondary market research.
One reason why Pierre carried out primary market research is because it is much more accurate than secondary market research. As shown in the case study, secondary market research could only give him qualitative data based on opinions from the area, whereas primary market research would allow quantitative data for Pierre. There is much more accuracy involved within this type of market research, as it is specific only to Pierre’s T-shirt business and so when he forms his business plan outlying the budgets (total costs), there are less mistakes made. For example, the primary market research indicates that sales would be very seasonal with peaks at summer and Christmas. This would then inform Pierre that he needs to buy up stock in the months before these times so that he can account