1.1.2 - Market Research Flashcards
What is product orientation?
Approach made which focuses on characteristics of product rather than needs of customers
- Creating product then find the market
Pros of Product Orientation
- Fewer resources as just focus on development
- Lower costs as no market research
- Unique ideas
Cons of Product Orientation
- Lower risk of acceptance as no customer needs
- Possible waste of resources
What is Market Orientation?
Business finds out what demand is and then meets those needs
Pros of Market Orientation
- Greater customer satisfaction
- Higher acceptance rate in market
- Customer loyalty
- More ideas generated
Cons of Market Orientation
- Research can be time consuming
- New substitute products may come out decreasing revenues
Advantages of Primary Research
- Up to date
- Tailored to needs of business
- Competitors don’t have access
Disadvantages of Primary Research
- Time consuming
- Expensive to carry out
- May be small sample size
Advantages of Secondary Research
- Available immediately
- Free/Cheap
Disadvantages of Secondary Research
- Could be out of date
- Not accurate/reliable
- Competitors have access
What is Quantitative data?
- Focuses on a numerical data
- Collected through questionnaires and surveys
What is Qualitative data?
- Focuses on opinions and attitudes
What is a closed question?
- Can only be answered from a variety of answers
What is an open question?
- Questions that require more detail providing information on opinions/attitudes
Use of Company websites
- Allows collection of primary data more cheaply
- Pop ups can also collect data
Use of Databases
- Used to store large amounts of customer information
- Also can collate customer e-mails
Use of social networking
- Gathering info based on social channels
- Can also run quick polls and surveys
What is market segmentation?
Group of buyers with similar characteristics and buying habits
Benefits of market segmentation
- Diff products for diff segments can increase revenue
- Easier to target products (less promotional waste)
- Higher customer loyalty
- Less expensive
Drawbacks of market segmentation
- May be difficult to identify a segment
- May need more detailed market research
- May be small or unprofitable
