1.1.2 market research Flashcards
product orientation
the product is the most important factor when providing products for a market
market orientation
the consumer is the most important factor when providing products for the market
two categories of market research
primary research
secondary research
primary research
data collected first hand for a specific research purpose
secondary research
data that already exists and which has been collected for a different purpose
why would a business collect data?
to assess potential demand for a product or service.
see which promotions would best suit a launch of the product or service.
assess the competition.
to build a customer profile
benefits of researching a market
for decision making, reduces risk and cost of making poor decisions.
to develop a marketing plan based on data gathered about the 4ps.
to react to and prepare for changes in the market.
to become market orientated
primary research methods
questionnaire / survey
interviews
observation
loyalty cards
focus groups
consumer panels
test marketing
questionnaire / survey
may include a survey of customers who use the business.
a business can gather quantitative and qualitative data in this method.
can be used to measure customer satisfaction
interview
may carry out interviews with either the owner, customers or suppliers.
will gauge reactions to new tastes or ideas the business has.
will be specific to the needs of the company
observation
a business may choose to gather data from observation of buyer
loyalty cards
purchases on store cards can be used to track consumer buyer behaviour and further micro market to customers specific offers
focus groups
a group pf target market demographic respondents are chosen to take part in a product trial.
may use the product over time and then get together to discuss their thoughts.
gives the business specific qualitative information
consumer panel
a group of experts who have been selected by an agency to answer a series of responses to questions about a product or service.
usually independent experts rather than being members of the general public.
test marketing
a business may invent, produce or buy in a new product.
all staff in the business may agree these are good products, but need to know if the wider public will need to know if the wider public will buy them.
product is offered to a carefully chosen sample
secondary research methods
annual reports
internal data
government sources
news
trade journals
specialist organisations publications.
eu and international sources
annual reports
may be useful for a business to look at their previous annual reports or even those of their competitors.
includes a balance sheet and profit and loss statement
internal data
a business may have collected a wealth of data over a number of years of trading.
sales figures are very useful for forecasting future sales
government sources
information can be used to make decisions
news
businesses considering launching a new product or even looking for new markets for the old product, may turn to news or media for help
trade journals
cater to a very specialist market.
information on competitor activity such as promotions.
news specific to the industry
specialist organisation publications
mintel trends and reports.
constantly assess change in culture, economy and society.
reports cost £1000 - £3000
eu and international sources
world trade organisation works at lowering trade barriers, tariffs and quotas between countries.
International Monetary Fund is an organisation of 188 countries who work to foster global monetary cooperation.
quantitative data
involves gathering data and measuring responses.
data displayed in charts
qualitative data
seeks to gather and explore feelings and thoughts about a product from consumers
limitations of market research
research carried out did not give enough information.
data is inaccurate or misleading.
data is non-specific to the organisation
market segmentation
an identifiable group of individuals where consumers share one characteristic or need
market segmentation - social class
upper class - professionals
middle class - other professionals
lower middle class - skilled non-manual workers
skilled working class - trained skilled workers
working class - unskilled manual workers
unskilled / unemployed - those on state benefits
