1.1.2 Market Research Flashcards
what Is product orientation?
The product is the most important factor when providing products for the market
Developing products is what is good at
What is market orientation?
Customer is the most important factor when providing product response to customer needs and wants and designs products accordingly
How does products in product orientation get made?
Start
focus
means
end?
Start -research and design in the factory
focus -products
means - selling plus promotion
End- profit through sales volume
What is the process of market orientation?
Starting point- target manufacturers
focus -customer needs
-means coordinated marketing
End- profit through customer retention
What are the nine different types of primary research methods?
Questionnaires
postal services
interviews -telephone or personal
focus groups
consumer panels
observations
test marketing
loyalty cards 
What are questionnaires?
A list of written questions given to customers to fill out 
What are questionnaires used to record?
Views and opinions of respondents
Why do we use questionnaires?
Could use it to find a clear answers close the questions
What are the positives and negatives of questionnaires?
Positives-can find it to use clear answers (closed questions )
open questions -for suggestions
Negative- may be too hard for them to be out by themselves need someone to simplify
may be too long low response rate
What are interviews?
When an interviewee asks an interviewers questions
What is the positives of having a telephone interview?
Cheaper and more convenient
could use if you want a geographical opinion
What are the negatives of interviews?
Interviewee May feel bias To answer correctly
What is the positive of a personal interview?
Carried out in the streets interview articles in answers
Can be explained of interviewee is confused
What are focus groups?
A group of customers who attended discussion thereby market researchers
What are the positives and negatives of focus groups?
Positives -Collect more representative data to the whole population
cost-effective
Qualitative- in depth and build off question
Negatives - Some people may not be heard
What are consumer panels?
Where customers give feedback
What are observations?
Market research a watch his behaviour of customers
Why would we use observation?
Only used in retail outlets to record the multi customer spend looking at a particular product
What are the positives and negatives of observations?
Positives - It’s time relevant
Negatives- You get no feedback as in why they look at a certain product
it’s quite expensive as you have to pay somebody to do it
What is test marketing?
Selling new products in a restricted you geographical area to test it out before national launch
What are the positive and negative of test marketing?
Positive- you get time relevant feedback
Reputation is protected if it goes wrong
Negative-Costly as you have to use promotion to attract potential customers

What are loyalty cards?
Card given to customers throughout them for buying goods
Why do we use loyalty cards?
Creates the opportunity to determine the best discounts to give how to best engage with customers
Products are recorded which Are bought the most
Enlists loyalty between the customer and the business
What is market segmentation?
A part of a whole market where a paticular customer group has the similar characteristics
What are the 3 segments are market segmentation?
Geographical - area depends on product
Demographical- age - diff needs
Gender - diff needs in toiletries
Income - more disposable income - luxury and needs
Social class - diff disposable income
Ethnicity- countries becoming more cosmopolitan- diff ethnicity living together- diff needs and taste
Religion - diff needs eg Muslims - no pork or alcohol
Psychographic
Personal tastes
Behavioural- how the buy
Impulse buyers
Usage rate - how much they puchase
Time and date of consumption
Loyalty
What are the 4 positives of market segmentation?
Increased brand loyalty and repeat custom
Enables business to understand and meet needs of customers more efficiently
Reduces price sensitivity help improve profitability
Avoid wasting Resources on segments that are not interested
What are the negatives of market segmentation?
Increased cost to research and provide product development
Potential for other segments to lose identity and less able to exploit economies of scale
Additional marketing activities required
Targets more segments
What is market mapping ?
Illiterates the range of positions a pricier can take In the market based on two dimensions that are important to customers
What are the 5 dimensions of market mapping ?
The Benifit offered by product-
USP - stands out
Origin or product- name of champagne
Classification of products
What are the positives of market maps ?
Help spot gaps in market
Good to analyse competitors
Helps entrepreneur gain more knowledge
What are the disadvantages of market mapping ?
Not reliable judgement- bias not customer
2 variables simplistic
Not guarantee success subject to external influences
What are the positives of market orientation? 3)
He can respond quickly to change the market due to market information
is in a stronger position to meet new challenges competing and entering in the market
will be able to anticipate market changes more confident that you could launch will be successful
Distribute product according to buying habits
What factors determine whether a business case is going to emphasis on the product or the market?
Size and nature of the market- If costs are really high then cut them company is more likely to be market orientated
degree of competition if lack of competition may be less likely to research
What is market research?
Gathering presenting and analysing information about the market and consumption of goods
three things market research can be used for?
And anticipate customer needs and wants- To know what products to sell can be due to the performance colour economy
quantify the likely demand of product-Allows to meet demand data will be quantitated organise resources better and quicker
Provide an insight into consumer behaviour- Going to analyse consumer behaviour could be more successful if identify patterns
What is a secondary data?
Collecting data that already exists
What are the two types of secondary data?
Internal data - collected from existing business internally documents sales figures and reports stock movement
External data- data available from outside of the business
information from competitors government publications census
Internet webpages

What are the uses of IT to support market research?
Company websites - provide access to online surveys easily direct customersQuestionnaires
flexible and can be tailored to to responses of individuals
Cheap To administer and
can be made available 24 /7 to respondents
Can also carry out secondary data by looking at websites of rivals prices product range
Social networking-Businesses use social platforms in order to gain market research search up their name
Negative is that you’re driven by question
s
Positives- Broad Reach can reach millions of people
ability to target
free costs
personal communication -on a personal basis of individuals more in depth
fast information can be collected quickly and it’s easy high level of IT skills not needed
What are Databases?
Electronic filling system allows a great deal of data to be stored
Like loyalty cards
Has calculations within records
filing sorting facility to arrange data
file searching facility

What are the negatives of market research
Interviewer may be biased
sampling size may be too tiny
not representative of target market 
When is Product orientation appropriate?
Little competition in the market so business can make what suits its production capacity
when there is limited consumer knowledge
no disposable income
What are the five factors that may change why a business should be a product or market orientated?
Nature of product- if it’s on the edge of innovation or if it’s a necessity like pharmaceuticals
policy decisions- what does objectors line with the success of the business and
the views of those in control -
marketing person will be highly concerned with the market research
the nature and size of business- if production costs are very high likely to be market orientated
high degree of competition - is the lack of competition will be product orientated
What are the three kinds of market segmentations?
geographic - Where they live
demographic - Vision income gender or social class ethnicity age
and behaviourable- Personal tastes preferences lifestyle
Give a few examples on how businesses can gain a competitive advantage of a product or service
Product quality- Can change consumer perceptionsSo they are inclined to buy the product
promotion
customer service
ethical stance
flexibility
delivery times - convenient
economies of scale firms can produce efficiency low cost and afford to charge a lower price and gain a competitive advantage by being a course leader in the market
What is the purpose of product differentiation?
To gain a competitive advantage
What are the 4 ways that show the purpose of product differentiation?
Allows flexible pricing business can demonstrate clear physical differences between the products with her rivals allowed them to have more value for their money
recognition- For their attributes that they cannot receive from their competitors
extend products range -More choice
brand development - overcome competition
give4 examples of the way businesses may add value by adding features that go beyond customers expectations
Bundling - putting together a package of benefits
Frequent buyer Offers- builds loyalty - more likely to purchase from you
customer service- Friendly good image good reputation
speed of Response- convenient
Customisation - embedded in customer logo allows them to add a higher price if they would like
speed of response
Give an example of external shocks that will lead to a change in demand
government- Influence demands raising taxes
economic climate and social and environmental factors
Competition 
What are wholesalers ?
Buys goods from manufacturers and sells them in smaller goods for retailers
