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 the 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can quickly become out of date, not tailored to business needs.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.
