1.1.2 Market Research (1/3) P&M orientation Flashcards
Marketing Research
Collection of data to obtain insight and knowledge into the needs and wants of customers and the structure and the dynamics of a market
Product orientation
Where the business develops products based on what it is good at doing rather than what a customer wants
A product orientated business assumes what is the most important factor for demand in the market?
The quality of a product
Product orientated businesses pay less attention to customer wants and needs
T/F?
True
What is the view that product orientated businesses have of their consumers?
Their view of consumers is that if they produce products with superior quality, consumers will buy regardless of whether it suits their tastes or not
Advantage of product orientation (1)
2
1) Internal efficiency as the firm produces what is it familiar with & production facilities already set up. -> lower costs & higher quality as a result
Disadvantages of product orientation (1)
2
1) The business may produce a good / service that consumers may not want & doesn’t take into account changing trends - may not sell.
Market Orientation
When businesses place customer wants and needs at the centre when designing a product
Advantages of Market Orientation (3)
1) Satisfaction
2) loyalty
3) premium pricing
1) Customer satisfaction - satisfied because your business has met their needs and wants
2) Customer loyalty - Satisfying customers can create loyalty - this is critical to secure sales and profits in the long run
3) Can charge premium price (higher profit margins)
Market Orientation disadvantages (2)
2
1) Consumers needs and wants always changing - therefore businesses must be flexible in adapting to consumers wants and needs - Failing to do so can result in loss of sales and profits
2) Lots of Market research = costly
