1.1 Meeting customer needs Flashcards
What is product orientation?
business develops product based on what the company is good at doing
What is market orientation?
business responds to customer needs and wants
designs products accordingly
Why is market orientation crucial?
markets are dynamic
consumers are more demanding
barriers to entry are low
What are the advantages of primary research?
detailed, accurate, focused on business objectives, first-hand research
What are the disadvantages of primary research?
time consuming > opportunity cost
costly
can be biased
What are the advantages of secondary research?
free and easy to obtain
quick
suitable for small businesses
What are the disadvantages of secondary research?
can be out of date
unreliable, inaccurate
not tailored to business needs
What are the advantages of quantitative research?
easy to analyse. numerical data
What are the disadvantages of quantitative research?
focuses on data
doesnt explain reason behind the numbers
not in depth
What are the advantages of qualitative research?
understanding customer needs and wants
highlights issues
in depth
What are the disadvantages of qualitative research?
expensive to collect and analyse
based on opinions
sample may not be representative
What are the advantages of market segmentation?
market products to meet different needs
increase loyalty of customers
What are the disadvantages of market segmentation?
difficult to identify segments
needs detailed research
segment could be too small and unprofitable
What are the advantages of market mapping?
- spots gap in market
- analysing competition
- market research
What are the disadvantages of market mapping?
- “gap” doesnt mean demand
- not guaranteed success
- reliable?
