1.1.2 Market Research Flashcards
Define product orientation.
When a business’ main focus is to enhance its product or production process in an attempt to increase sales.
(usually through innovation)
When is product orientation appropriate?
1) If there is little competition, business can choose what suits production capacity.
2) Little consumer knowledge.
Give an example of product orientation.
Apple create iPhone, iPads and create innovative products.
They make them because of new discoveries and technology, instead of asking consumers what they want.
Define market orientation.
When the business’ main focus is on identifying and satisfying customer needs in order to increase sales.
When is market orientation appropriate?
Give an example of market orientation.
Asda have a “chosen by you” range which consists of around 3,500 products all tested by multiple volunteers across the UK.
Benefits of market research.
Market research helps:
Effective business decision making thus reducing risk.
Develop a market plan using the 4p’s.
Identify potential competitors.
Calculate how much customers will pay.
Define primary market research.
Research a business does itself by going directly to the source. This allows for data very specific to the business.
List the methods of primary research.
Surveys
Observations
interviews
Test marketing
Focus groups
Define secondary market research.
The process of gathering pre-existing data about a market.
List the methods of secondary research.
Government Sources
Trade publications
Market reports
Internet sources
Qualitative research
Seeks to gather and explore feelings and thoughts about a product from consumers.
Gathered by:
Focus groups
Interviews
Observations
Quantitative research
Involves gathering data from large samples and displaying them as charts, graphs, statistics and percentages.
Gathered by:
Questionnaires
Surveys
Observations
Customer Interviews
Test marketing
Focus groups
Government sources
Trade publications
Market reports
Internet sources
Limitations of market research
Sampling
Sample size
Bias
How does ICT support market research?
Websites
Social networks
Businesses databases
Market segmentation
Types of market segmentation
Location
Demographics
Lifestyle
Income
Age
Gender
Explain Market segmentation by location
Explain market segmentation by demographics
explain market segmentation by lifestyle
Explain market segmentation by income
Explain market segmentation by age
Explain market segmentation by gender
