1.1.2 Flashcards
What is product orientation?
- An inward looking approach to new product development
- The key focus is on what products can be made and the production process
What is Market orientation?
An outward looking approach to new product development
- The key focus is on what products the consumer wants
What is market research?
The collection and analysis of data and information to inform a business about its market
What 3 things is data collected and analysed used to do?
- Identify and anticipate customer needs and wants
- Quantify likely demand
- Gain insight into consumer behaviour
What is primary market research?
The collection of first hand data that did not exist before and therefore is original data
What is secondary market research?
Research that has already been undertaken by another organisation and therefore already exists
Surveys and questionnaires, in depth interviews, focus groups and observations are all examples of which market research?
Primary market research
Is newspapers and magazines an example of secondary market research?
Yes, as well as:
- National and Local Government
- Market Research organisations
- Professional bodies
- Trade unions and Confederation of British Industry
- International bodies
- Academic organisations
- The internet
What is meant by ‘Qualitative research’?
The gathering of non-statistical information that gives a company indepth insight into the reasons for human behaviour
What is meant by ‘Quantitative research’?
The gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons
What is a sample?
A group of subjects that has been chosen from a larger group
What 3 things will the value of sampling depend upon?
- The sample technique used
- How the sample was carried out
- The size of the sample
What 3 things will the size of the sample depend upon?
- The budget available
- The importance of accuracy
- Degree of confidence in results
What are the 3 types of sampling techniques?
- Random
- Quota
- Stratified
What is the random sampling technique?
- A sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected
What is meant by quota sampling?
This is where the population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup
What is the stratified sampling technique?
The population is first segmented into subgroups before respondents are randomly selected from within that subgroup
What is meant by ‘market segmentation’?
- Market segmentation occurs when the market is split into subgroups of consumers with similar characteristics
What are the four segmentation methods?
- Demographic
- Geographic
- Income
- Behavioural
What does demographic segmentation mean?
When subgroups of the population are identified based on their demographic profile or characteristics
Is level of education an example of demographic profile?
Yes- as well as:
- Age
- Gender
- Religion
- Race
- Stage in life
- Family size
What is Geographic segmentation?
When market categories are defined based on where people live
What is income segmentation?
’ When subgroups are identified based on their levels of income and profession
What are the 6 socio-economic groupings?
- A- higher managerial eg. Chief executives
- B- Intermediate managerial eg. solicitors
- C1- Supervisory, clerical or junior professional eg. teachers
- C2- Skilled manual eg. plumbers
- D- Semi and unskilled workers eg. window cleaners
- E- Pensioners, casual workers, students and unemployed
