1.1.2 Market Research Flashcards
What is product orientation?
A business is product orientated when it only looks at the product or the production process when deciding what to make next.
When is product orientation appropriate?
-There is little competition in the market.
-There is limited customer knowledge.
-There is a low disposable income of consumers.
What is market orientation?
When the consumer is the most important factor when providing products for the market, the business has a sensitivity to customers requirements.
What will effective market research help a business to do?
-Reduce risk
-Understand consumer behaviour
-Quantify potential consumer demand
-Understand how much consumers will pay for a product
-Identify potential competitors
What is primary market research?
Primary research is collecting data first hand.
What are the 5 primary research methods?
1.) Questionnaires (surveys)
2.) Observation
3.) Customer interviews
4.) Test marketing
5.) Focus groups
What is secondary research?
Secondary research is gathering data that already exists.
What are 5 secondary research methods?
1.) Government sources
2.) Trade publications
3.) Market reports
4.) Internet sources
5.) Newspapers/ Magazines/ TV/ Radio
What is qualitative data?
Data that seeks to gather and explore feelings and thoughts about a product from customers, can be gathered through focus groups, interviews and observations.
What is quantitative data?
Involves data displayed in charts, graphs, statistics and percentages. Can be gathered through questionnaires.
What is sampling?
Sampling is the process of choosing the right people to be part of the research.
What is a sample size?
A sample size is the number of people who are interviewed during the research. It needs to be reasonably large to be valid.
What is bias?
Bias is when research findings cannot be trusted because of the way the research has been carried out.
How can ICT be used to support market research?
-Through pop-ups on websites
-Social networks (emerging trends)
-Business databases
What is a market segment?
A market segment is an identifiable group of individuals or part of a market where consumers share one or more characteristics or needs
