1.1.2 Market Research Flashcards
definition of Market Orientation
Business responds to customer needs and wants - designs products accordingly
definition of Product Orientation
Business makes marketing and production decisions on the design, quality and performance of its products - not what consumers actually want.
what is market research
collection and analysis of market information
- finds out customers wants and needs
- allows business to predict how much demand
- identifying competitors in he market
quantitative data
numerical data
qualitative data
data based on views and opinions
definition of primary research
data collected first hand for a specific research purpose. Gathers new data. eg. questionnaires
definition of secondary research
data that already exists and which has been collected for a different purpose eg. google
benefits of primary research
- directly focused to research objectives
- more detailed insights
drawbacks of primary research
- Time consuming
- risk of survey bias
benefits of Secondary research
- often free and easy to obtain
- quick to access and use
drawbacks of secondary research
- can quickly become out of date
- not tailored to business needs
limitations of market research
sample size: sample needs to represent the whole market. big sample has higher chance of being representative but expensive
Bias: to increase accuracy , researchers have to be careful to avoid biased questions in questionnaires, surveys etc..
how websites can be used for market research
- analyse the activities of people using the site
limitation - can’t find out why people are going on website but still not purchasing
how social networking can be used for market research
- can post content on sites eg Facebook, twitter and monitor responses
- cheap and quick
limitation - not all consumers use the same social networks
how businesses databases can be used for market research
- can collect their own data about their products and consumers
- eg. loyalty cards - customers name, address, money they spend
