1.1.2 Market Research Flashcards
Market Research
Analysing the market to implement a marketing strategy
Examples
- Dimensions of market
- Competitor strategies
- Needs and wants
- market segments
Product and market orientation
Product orientation - develops products based on what business is good at
Market orientation - responds to needs and wants and designs products accordingly
Market orientation likely to be a success - markets are more dynamic
Customers are becoming more demanding
Barriers to market entry = lower
Primary Research Benefits
+ Directly focused to objectives
+ Kept private
+ More detailed insights
Primary Research Drawbacks
- Time consuming and costly
- Risk of survey bias
- May not be a representative sample
Secondary Research benefits
+ Often free and easy to obtain
+ Good source of market insights
+ Quick to access and use
Secondary Research Drawbacks
- Can quickly be out of dTE
- Not tailored
- Specialist reports are expensive
Qualitative Research Benefits
What is it - Based on opinions beliefs and intentions, aims to understand why/ would/ how
+ Essential - new product development and launches
+ Focus - Customer needs wants and expectations
+ Can highlight issues that need addressing
+ Effective way of testing
Qualitative drawbacks
- Expensive to collect and analyse
- Requires specialist skills
- Based around opinions - risk
Quantitative Research Benefits
What is it - Based on data, larger samples, various forms of survey, how often, who, where
+ Easy to analyse
+ Provides trends
+ Easy to compare
Quantitative drawbacks
- Focus on data there is no explanation
- If sample size and method not valid may be inaccurate
Sampling Benefits
+ Even small (if representative) can provide useful research
+ Before marketing decisions - reduce risk and costs
+ Sampling is flexible and relatively quick
Sampling drawbacks
- Risk - unrepresentative = incorrect conclusion
- Risk of bias in questions
- Less useful in dynamic market segments
Use of IT in market research
DATA MINING - Secondary, quick and automated, large quantity can be analysed, data can be linked SOCIAL MEDIA - Primary and secondary, can quickly highlight what customers are saying about a product, e.g. surveys - easy to set up
What is Market Segmentation
Dividing a market into parts that reflect different customer needs and wants
2 key decisions - which customers to serve (market segmentation and targeting) and how to serve those customers (product differentiation and market positioning)
Segment basis
Demographic
Income
Behavioural
Geographical
