1.1.2 Market Research Flashcards
What is product orientation
A business approach which focuses on the production process and the product itself rather than the consumer.
When is product orientation used
When there is little competition in the market or consumers have little knowledge of the market
What is market orientiation
A business approach which continually identifies, reviews and analyses consumer needs
What is market research
The process of gathering, analysing and evaluating primary and secondary data on the buying habits, lifestyles and usage of actual and potential customers
What are the two types of market research
Primary and secondary
What is primary market research
The gathering of information from those within your target market e.g. questionnaires and observations
What is secondary market research
The use of information collected from a second hand source such as market intelligence report
What is quantitative research
Provides statistical data
What is qualitative data
Provides non-statistical in depth opinions
Advantages of qualitative data
It can highlight issues that were never considered beforehand
It gives a greater insight into consumer thinking patterns, allowing marketing strategies to be modified
Disadvantages of qualitative data
Expensive to gather information this way – requires skilled personnel
Usually conducted on a small scale which can lead to unrepresented opinions
Advantages of quantitative data
Results allow easy comparison with competitors etc
It can be used to identify trends, both current and future
Disadvantages of quantitative data
It shows ‘what’ is happening (trends) rather than ‘why’ (reasons)
It can lack reliability if the sample is too small or has not been chosen correctl
What are the purposes of market research
Identify and anticipate customer needs and wants
Quantify the likely demand for a product
Provides an invite into consumer behaviour
Methods to conduct primary market research
Questionnaire and interview
Observation
Focus group
Test marketing
