1.1.2 market research

Question 1

product orientation (4)

Answer 1

• inward looking approach
• key focus - what prodycts can be made + production process
• informed by R&D
• concentrate on producing high quality products + create a market for them

Question 2

market orientation (4)

Answer 2

• outward looking approach
• key focus is on what the consumer wants
• informed by market research
• adapting product to consumer needs

Question 3

market research

Answer 3

collection + analysis of data to inform a business about its market

Question 4

benefits of market research: (3)

Answer 4

• identify/anticipate customer needs + wants

Question 5

limitations of market research (4)

Answer 5

• may not be accurate
• PR = costly
• element of bias
• have to be correctly analysed

Question 6

primary data

Answer 6

first hand data (original)

Question 7

examples of primary data

Answer 7

• surveys
• focus group
• interviews

Question 8

secondary data

Answer 8

data that has already been undertaken (already exists)

Question 9

examples of secondary data

Answer 9

• stats
• newspapers
• graphs
• books

Question 10

qualitative research (2)

Answer 10

• non statistical
• gives compnay in depth insight into reasons for human behaviour

Question 11

quantitative research (2)

Answer 11

• statistical information
• inform compnay about peoples behvaiourbut not reasons

Question 12

sampling

Answer 12

allows a business to gain an insight into wants and needs of the customer (cost effect manner)

Question 13

positives of sampling (3)

Answer 13

• provide useful insights
• flexible/relatively quick
• reduce risk/cost

Question 14

negatives of sampling (3)

Answer 14

• risk of bias
• sample unrepresentative of population
• not useful in market segments (customer tastes chang frequently)

Question 15

types of sampling (3)

Answer 15

• random
• quota
• stratified

Question 16

random sampling

Answer 16

sample is selected by chance
each individual has an equal chance of being selected

Question 17

quota sampling

Answer 17

population is first segemented into subgroups before selecting respondants that are representative

Question 18

stratified sampling

Answer 18

first segemented into subgroups then randomly selected

Question 19

segementation

Answer 19

process of dividing a company’s target market into groups of potential customers with similar needs + behaviours

Question 20

positives of segementation (3)

Answer 20

• boosts clients happiness
• avoids money waste
• focus on different segments

Question 21

negatives of segementation (3)

Answer 21

• production problems
• unprofitable goal
• increases companies

Question 22

types of segementation (4)

Answer 22

• demographic
• income
• geographical
• behavioural

Question 23

demographic segments (6)

Answer 23

• job
• age
• gender
• ethinicity
• family lifestyle
• nationality

Question 24

income segementation (6)

Answer 24

A- chief executives
B- intermediate managerial
C1- supervisory/ junior professionals
C2- skilled manual
D- semi/unskilled workers
E- pensioners/students/unemployed

Question 25

behavioural segments (6)

Answer 25

• occasions
• usage
• loyalty
• attitudes
• knowledge
• benefit sought

Question 26

geographic segmentation

Answer 26

defines market categories based on where people live (eg regions, cities, neighbourhoods)