1.1.2 market research Flashcards
definition of product orientation
an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
advantages of product orientation
lower advertising costs
safe brand reputation
achieve economics of scale
definition of market orientation
an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
advantages of market orientation
increased sales
always providing for needs and wants
innovative
customers want these products
market research (def.)
the objective collection, compilation and analysis of information about a market
primary research (def.)
process of gathering information directly from consumers in the target market
examples : surveys, observations, interviews, focus groups
primary research adv.
focused on the needs of the business
can get in-depth information from respondents - competitors won’t have access to information
up-to-date and relevant
primary research dis.
sample size may be too small
there may be bias/external influences
expensive and time-consuming
secondary research (def.)
the collection, compilation and analysis of data that already exists
secondary research adv.
information is already available - quicker and cheaper to collect
suitable for small businesses
secondary research dis.
data may lack relevance
data may not be factually correct
information may be out-of-date
market segmentation (def.)
the process in which a single market is divided into sub markets or “segments”
market segmentation adv.
recognises that consumers are not all identical
products can be altered to meet different needs of different groups of consumers
less expensive and wasteful
may increase loyalty if consumers feel their needs are being met - can lead to repeat purchases
market segmentation dis.
not everyone within a segment will behave the same way
may be difficult to identify a segment - consumers can belong to multiple different segments at the same time
requires more detailed market research
segments may be too small and unprofitable
definition of a market segment
a group of consumers who share similar characteristics e.g. age, lifestyle, etc.