1.1.2 - Market Research Flashcards
Define Product Orientation?
A business is product orientated when it only looks at the product or production process when deciding what to make next
- This means the business is inward looking
Define Market Orientation?
The customer is the most important factor when providing products for the market, the business has a sensitivity to customers requirements.
- A market orientated business will focus on the needs of the consumer.
Name the benefits to a business of effective market research?
- Reduce Risk
- Understand consumer behaviour
- Quantify potential consumer demand for a product
- Understand how much consumers will pay for a product
- Identify potential competitors
Define Primary Research?
Primary research is collecting data first hand
- The data will be specific to the needs of the business
- The information does not yet exist
Name the Primary Research Methods?
- Questionnaires
- Observation
- Customer Interviews
- Test Marketing
- Focus Groups
Define Observational Research?
A business may choose to gather data from observation of buyer behaviour
- E.g do shoppers shop alone?
Define Focus Group Primary Research?
A group of target market demographic respondents are chosen to take part in a product trial.
- They may use the product over time and then get together in a group to discuss their thoughts about the product.
- This gives the business very specific qualitative information about how customers relate and feel about the product.
Define Secondary Research?
Secondary research is gathering data which already exists.
Name the Secondary Research Methods?
- Government Sources
- Trade Publications
- Market Reports
- Internet Sources
Define Trade Publications Secondary Research?
Trade journals cater to a very specialist market
- Information on competitor activity such as promotions
- News specific to the industry
- Helps small businesses stay in touch with trends in the market
Define and Explain Qualitative Data?
Seeks to gather and explore feelings and thoughts about products from consumers.
Information is gathered from;
- Focus group discussions
- Interview with consumers on what they think about the product or service
- Observations of buyer behaviour
Define and explain Quantitative Research?
Involves gathering data and measuring responses
- Data displayed in charts, graphs, as statistics and percentages
- Questionnaires written to gather numerical data
Define Sampling?
Sampling is the process of choosing the right people to be part of the research
Define Sample Size?
A sample size is the number of people who are interviewed during the research.
Name the ICT methods of Research?
- Websites
- Social Networks
- Business data bases
