1.1.2 Market Research Flashcards
Definition of Market Orientation
Marketing that focuses on the needs of consumers to design a product
3 Key Points of Market Orientation
-Consumers at centre of marketing decisions
-Products will be developed to consumer needs
-Businesses will believe they will benefit from high demand, increased profit and better reputation
3 Tools for Market Orientation
-Market Research
-Market Testing
-Market Focus
4 Advantages of Market Orientation
-Reputation
-Image
-Brand
-Differentiation
3 Disadvantages of Market Orientation
-Market / Needs constantly changing
-Costs
-Unpredictable
Definition of Product Orientation
Marketing that focuses on characteristics of the product rather than consumer needs
3 Key Points of Product Orientation
-Create product first then find market
-Belief product is superior (will sell itself)
-Could be too product orientated thus creating failure to meet any consumer wants
3 Tools for Product Orientation
-Product Research
-Product Testing
-Product Focus
3 Advantages of Product Orientation
-High Quality
-Innovation
-Economies of Scale
3 Disadvantages of Product Orientation
-Neglect wants/needs of consumer
-High Competition
-Riskier
Definition of Quantitative Data
Numerical data that can be counted or measured often presented as stats or percentages
Definition of Qualitative Data
Non-numerical data often containing opinions expressing insight
Definition of Market Research
The process of gathering and interpreting data about customers to help a business reduce risk and improve decisions
6 Advantages of Market Research
-Reduces risk
-Anticipate future wants and needs
-To understand customer behaviour
-To identify potential demand
-To identify competitors
-To identify how much consumers are willing to pay
4 Disadvantages of Market Research
-Cost to collect and utilise
-Time
-Relevance to business
-How up to date is the research going to stay
Definition of Primary Research
The process of gathering information directly from consumers in the target market
5 Examples of Primary Research
-Surveys
-Interviews
-Focus Group
-Test Marketing
-Observation
3 Advantages of Primary Research
-Relevant to business
-Can be in-depth
-Up to date
5 Disadvantages of Primary Research
-Sample size may be too small
-Bias
-May need 3rd party to analyse
-Time consuming
-Expensive
Definition of Secondary Research
The collection, compilation and analysis of data that already exists
3 Examples of Secondary Research
-Market Reports
-Competitor Analysis
-Government Publications
3 Advantages of Secondary Research
-Already exists
-Cheaper to collect, often free
-Suitable for small business
3 Disadvantages of Secondary Research
-May lack relevance
-Information may be out of date
-Expensive to purchase market specific reports
How does a company website support market research
Allows businesses to collect primary data by analysing spending habits, searches and reviews
How does databases support market research
Can store large amounts of customer information, such as emails to use to correspond offers
How does social networking support market research
Focuses on gathering information about consumers, and can be used for quick polls and surveys
Definition of Market Segmentation
The process of dividing a single market into sub markets based on common characteristics
4 Advantages of Market Segmentation
-Recognises that not all consumers are identical
-Products and marketing can be targeted
-Less expensive than generalised marketing
-May increase loyalty if needs are met
4 Disadvantages of Market Segmentation
-Not everyone in a segment will behave the same
-May be difficult to identify a segment
-Requires more market research
-Segments may be too small and unprofitable to cater for
