1.1 meeting customer needs (booklet 2) Flashcards
product orientation
business develops products based on what it is good at making or doing, rather than what the customer wants
market orientation
businesses respond to customers needs and wants
purpose of market research
- clarify specific needs and wants of customers
- provide insight into consumer behaviour
- find out demand for a product
market research
process of collecting and analysing data based on marketing and consumption of goods and services
secondary research, desk research
data which exists collected for another purpose, e.g internal data ,business documents, external data, outside business, info from competitor or government
primary research, field research
data collected first hand for specific purpose, e.g questionnaires, postal surveys, focus groups, test marketing
positives of secondary research
- free and easy to obtain
- quick to access
negatives of secondary research
- quickly becomes out of date
- specialist reports expensive
- may not be representative of customers views
positives or primary research
- results kept private
- In depth views from customers
- data collected directly from business customers
negatives of primary research
- time consuming, expensive
- difficult to collect big enough sample for data to be useful
quantitative data
collection of statistical data such as sales figures
qualitative data
collection of reasons, attitudes and beliefs of consumers from a focus group
positives of qualitative data
- detailed reasoning helps with decision making
- understands customers needs in detail
- can identify why sales may be declining
negatives of qualitative data
- time consuming, expensive
- based on opinions which can be unreliable
- sample size may not be representative of the market
positives of quantitative data
- quick and easy to analyse
- numerical data provides insights to trends
- easy to compare with past or competitors data
