1.1.2 Market Research

Question 1

What is product orientation?

Answer 1

Focuses on the characteristics of the product as opposed to the needs of the customer.

Question 2

What is market orientation?

Answer 2

Focuses on the needs of the customer and design the product off these needs.

Question 3

What is primary research?

Answer 3

The process in which information is gathered directly from consumers within their target market. (Surveys, Interviews, Observations and Focus Groups)

Question 4

What is secondary research?

Answer 4

The collection of information from data that already exists.

Question 5

What is market segmentation?

Answer 5

When a market is separated into smaller sub-sections within the business?

Question 6

Advantages of primary research?

Answer 6

Provides up-to-date data.
Can ask specific questions.
Can gather in-depth information.
Can be focused to the needs of the business.

Question 7

What are the disadvantages of primary research?

Answer 7

Could provide bias results as researches ‘hunt’ for particular responses.
Potentially small sample size, leading to inaccurate or misleading results.

Question 8

What are the advantages of secondary research?

Answer 8

Quicker than collecting your own primary data.
Saves potential costs of conducting your own research. (Data can often be found for free on websites, such as Government statistics online.)

Question 9

What are the disadvantages of secondary research?

Answer 9

The information gathered may not be relevant to your business.
Potential risk of the data being out-of-date,
secondary data is not always free and you may be required to pay to access certain data.