1.1.2 - Market Research Flashcards
What is Product Orientation?
- Selling what the business wants to produce
- Business’ are only product orientated when they only look at the product or production process when deciding what to make next
What are 3 scenarios when Product Oreintation is appropriate ?
- Little competition
- Little consumer knowledge
- Low disposable income of consumers
What Business is an example of being Product Orientated?
Apple
- that create what they can, no what consumers want as they don’t know what they want from new technology
What is Market Orientation?
Based on customer needs and wants
Consumer is the most important factor
What Business is an example of being Market Orientated?
ASDA - Chosen by you range
What is Primary Market Research?
Gathering NEW data, collecting data first hand
This information doesn’t exist yet
What are the 5 Primary Research Methods
Surveys / Questionnaires
- used to measure customer satisfaction
- qualitative & quantitative
Observation
- buyer behaviour
Interview
- measures reactions
- qualitative
Test Marketing
- launching the product in small part of the target market in order to gauge the viability of a product in the market prior to launch
Focus Group
- discuss feelings on a product/market , qualitative
What are some benefits to business of effective market research?
- Reduce Risk
- Understand consumer behaviour
- Identify potential customers
- Understand how much consumers will pay for a product
- Quantify potential consumer demand for a product
What is Secondary research?
Gathering data which already exists
What are the 5 methods of Secondary Research?
Government Sources
- ONS is very useful demographic information and data on the market or industry that the business is in
Trade Publication
- Trade journals cater to a very specialist market , information on competitor activity
Reports
Internet Sources
- Useful for quick information
Newspapers/Magazines/ TV Radio
- contain demographic profile of their audiences ( income,age,gender etc.. )
- can have information about economic trends in local area
What is Qualitative Research?
Gathers and explores FEELINGS and THOUGHTS about a product from consumers
What is Quantitative research?
Gathering data and measuring responders, NUMERICAL data, large sample
Displayed in charts, graphs as statistics and percentages
What is Sampling?
The process of choosing the right people to be part of research
Why does the Sample Size needs to be large?
So that the data has STATISTICAL VALIDITY and can be useful for the business for decision making
What is Bias?
When research findings can’t be trusted because of the way the research has been carried out
What are 3 ways of Bias?
- Interviewer Bias
- Biased Questions - e.g. “ you really like shopping at co-op don’t you “
- Respondent Bias - e.g. they already use a different product or work for a marketing company
What are 3 uses of ICT to support market research?
- Websites
- Social Media - Twitter
- Business Databases
What is 1 Pro of Primary Research?
- Design quantitative and qualitative questions tallied precisely to your needs
What are 2 Cons of Primary Data ?
- Likely time consuming ( as it doesn’t exist yet )
- Likely expensive
What are 2 Pros of Secondary Research?
- Likely Quick/Instant
- Likely cheaper to access research ( vs primary )
What are 2 Cons of Secondary Research?
- Competition will have access to same info
- Research may be too broad or out of data
What are 4 Pros of Quantitative Data
- Easier to gather
- Quicker to gather
- Faster to analyse
- Easier to make decision from
What are 2 Cons of Quantitative Data?
- Tends to have narrow/closed questions e.g. who/what/when
- Unhelpful if you want to understand issue in depth
What is 1 Pro to Qualitative Data?
- Creates in depth data with the ‘ how ‘ and ‘ why ‘ to help understand issue in depth
What are 3 Cons to Qualitative data?
- Slower to gather
- Difficult to analyse data
- Harder to make Business decisions from
What is Market Segmentation?
When potential customers are divided into different IDENTIFIABLE GROUP, where consumers SHARE one or more CHARACTERISTICS or needs
What are 5 different ways a Market can be Segmented?
Gender
- offer altered products based on gender
Income
- segmented according to annual salary, type of job, social class. Identifying disposable incomes
Age
- each age group will have different wants and needs in terms of products & services
Location
- a business may decide to sell a product in just one country, one region , rural or urban
e. g. McDonalds - rice in Philippines
Lifestyle
- hobbies, interests, family situations. E.g. 2 different types of holidays
What is Test Marketing ( Primary Research Method ) ?
Involves LAUNCHING the product in SMALL PART of the target market in order to GAGUE the VIABILITY
How does the use of Websites support Market Research?
- POP UPS - used to ask about products
- Used to GATHER EMAIL ADDRESSES so customers can be SURVEYED later via email
How does the use of Social Media - Twitter support Market Research ?
- Searching for TRENDING HASHTAGS to see emerging trends
- Searching a business name to find out quantitative information about consumer perceptions
- However it can backfire, backlash
How does the use of Business Databases help support market research?
- Large supermarkets use all the data from their loyalty schemes to build huge customer databases
- Information can be used to TARGET CUSTOMERS LIKELY TO BUY AT THE STORE
