1.1.2 Market Research Flashcards
What is product orientation?
A business is product orientated when is only looks at the product or production process when deciding what to make next (inward looking)
When is product orientation appropriate?
- Little competition in the market, business can make what suits it production capacity.
- Limited customer knowledge (braces).
- Low disposable income of customers.
- When funds are limited, customers will buy what’s available.
What is market orientation?
Consumer is the most important factor when providing products for market. Focuses on customer needs.
Benefits for a business that researches its market
- Develop market plan on data gathered about market mix.
- Helps business react and prep for changes in market.
- Helps business become market orientated.
What is primary market research?
Collecting data first hand which is gathered for the benefit of the business.
Primary research methods
Surveys - gathers quantitive/qualitative data, tells business how to improve.
Observation - gather data from observing buyer behaviour.
Interview - measure reactions to new ideas, gathers qualitative data, specific to company needs.
Test marketing - when business invents new product/service, they need to know if wider public will buy them in a quantity that breaks even/makes profit.
Focus group - people are chosen to participate in product trial and discuss thoughts, gives specific qualitative info about how customers feel about the product.
What is secondary research?
Gathering data that already exists.
Secondary research methods
Government sources - ONS is useful info/data on the market that the business is in, info used for decisions about expanding.
Trade publications - trade journals cater to specialist market, provide info on competitor activity, helps businesses stay in touch with trends, news specific to the industry.
Market reports - buying a report about an industry may be the most cost effective way to achieve marketing objectives.
Internet sources - way to research competitor websites, gain industry info quickly, consumers discuss thoughts, customers can be vocal about products.
Newspaper/TV/Radio/Magazines - useful commercial info outlets as they contain demographic profiles of audience, info about economic trends in their local areas.
What is quantitative research?
Research conducted on a large enough scale to provide statistically reliable data, usually aimed at discovering factual info about how customers behave (numbers).
What us qualitative research?
Seeks to gather and explore feelings and thoughts about a product from consumers.
What is sampling?
The process of choosing the right people to be part of the research.
What is sample size?
Number of people interviewed during the research.
What is bias?
When research findings cannot be trusted because of the way the research has been carried out.
Use of ICT to support market research
Websites - Pop ups can be used to ask customers about products. They can also gather email addresses so the targeted customers can be surveyed later.
Social networks - search for trending hashtags to see emerging trends.
Business databases - use data from loyalty schemes to build large customer databases. This info is used to target customers likely to buy at the store.
What is market segmentation?
A market segment is an identifiable group of individuals or part of a market where consumers share needs or characteristics.
