1.1.2 Market research Flashcards
What is market research?
Gathering and analysing data to gain an insight into a new market
What is market orientation?
Products are designed to meet consumer needs
What is product orientation?
Business designs products based on what it is good at producing
Why is market orientation crucial to success?
Markets are much more dynamic (technology)
Customers becoming more demanding
What is primary and secondary market research?
Primary market research is data collected first hand while secondary market research is data which has already been collected
Evaluate primary market research
+ Information tailored to specific needs of the business
- More time consuming and costly
Evaluate secondary market research
+ Less time consuming
- Could be out of date or not tailored to businesses needs
What is the importance of market research?
Identify customer needs
Identify gap in the market (demand)
What are focus groups?
A focus group is a group of people who are asked about their opinions on future business activities.
Limitations of market research?
Information could be biased
research could be unreliable
How can IT be used to support market research?
Collect data through websites
social media
What is market segmentation?
Market segmentation is the process of dividing a market of potential customers into group based on their different characteristics.
What does market segmentation allow a business to do?
Find opportunities for growth and optimise marketing strategies.
What is sampling in market research?
Gathering data from a group of respondents, in which the results will be representative of the target market.
Evaluate sampling
+Can reduce risks
-Sample may not represent population effectively and business could make wrong decision
