1.1.2 Market research Flashcards
What is product orientation?
A product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
Tools of product orientation.
/ Product research
/ Product testing
/ Product focus
What is market orientation?
Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
Tools of market orientation.
/ Market research
/ Market testing
/ Customer focus
What is market research?
Market research is the objective collection, compilation and analysis of information about a market
What will market research help the business with?
/ To reduce risk when launching new products or entering new markets
/ Anticipate future needs and wants of consumers
/ To understand consumer behaviour
/ To identify potential consumer demand
/ To identify how much consumers are prepared to pay
/ To identify competitors and gauge their potential strengths and weaknesses
What are the 2 ways data can be shown?
Quantitative - Numbers and statistics
Qualitive - Facts and words
What is primary research?
Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, etc
Advantages and disadvantages of primary market research.
+ Information gathering is focused on the needs of the business and will not be available to competitors
- The sample size may be too small leading to unreliable results
+ The business can get in-depth information from respondents
- Bias may mean researchers can guide respondents to answer questions in a particular way
What is secondary research?
Secondary research involves the collection, compilation, and analysis of data that already exists
Advantages and disadvantages of secondary market research.
+ Information is already available and so quicker to collect than primary research thereby saving time
- Information has been gathered from other sources so may lack relevance and may not be fully factually correct
+ Suitable for a small business that lacks a large marketing budget or expertise
- Can be expensive to purchase market specific secondary data from specialist companies
The uses of ICT to support market research.
/ Company websites
/ Databases
/ Social networking
What is market segmentation?
Market segmentation is the process in which a single market is divided into sub markets or ‘segments’
Advantages and disadvantages of market segmentation.
+ Recognizes that consumers are not all identical
- Not everyone within a segment will behave in the same way
+ Less expensive and wasteful than marketing products at wide market segments
- A segment may be identified but it may be too small unprofitable to cater for
