1.1.2 Market research Flashcards
define invention
formulation of new ideas for product processes
define innovation
practical application of new inventions into marketable product or services
define product innovation
launching new or improved products onto the market
product innovation pro’s
- first mover advantage
- higher prices + profitability
- added value
- opportunity to build customer loyalty
- enhanced reputation
- public relations
define process innovation
finding better more efficient ways of producing existing products
pro’s process innovation
- reduced costs - less wages
- improved quality - human error
- more responsive customer service
- greater flexibility
- higher profits
define product orientation
product is the most important factor when designing and creating products for a market informed by scientific research.
define market orientation
the consumer is the most important factor when providing products for the market informed by market research.
define market research
collection and analysis of data and information to inform a business about its market
data collected and analysed is used to
- identify and anticipate customers needs + wants
- quantify likely demand
- gain insight into consumer behaviour
define primary research
collection at first hand data that didnt exist before
examples of primary research
focus groups, questionnaires, loyalty cards
define secondary research
research that has already been undertaken by another organisation already existing
examples of secondary research
social media, govt reports, trade unions.
define quantitative data
gathering data and measuring responses
example of quantitative data
govt stats, surveys loyalty cards
pro’s of quantitative data
- easy to analyse
- insight into relevant trends
- can be compared with other data
con’s quantitative data
- doesn’t explain why things happen
- may lack reliability if sample size + method is not valid
define qualitative data
data gathered based on consumers thoughts
examples of qualitative data
focus groups, interviews.
pro’s qualitative data
- important for new product development launches
- understands customer needs
con’s qualitative data
- expensive
- based around opinions
define sampling
group of subjects chosen from a larger group
define random
each individuals chosen by chance
define quota
population segmented to sub groups, judgement is made in selecting respondents representative of that sub group
define stratified
population segmented into sub groups respondents randomly selected within subgroups
value of sampling depends on
- budget - important of quality
pro’s sampling
- useful research
- reduce risks + costs
- flexible + quick
con’s sampling
- unrepresentative
- risk of bias
define market segmentation
identifiable group of individuals where consumers share 1 or more characteristics or needs
pro’s market segmentation
- easier to identify new products
- targeted advertising
- more profitable
