1.1.2 Market Research Flashcards
What is Product orientation?
Product orientation is an inward looking approach
to new product development were the key focus is on what products can be made and the production process
What does a business concentrate on with Product orientation?
The business will concentrate on producing high quality products and then later look to create a market for them
What is Market orientation?
Market orientation is an outward looking approach
to new product development were the key focus is on what products the consumer wants
What does a business concentrate on with Market orientation?
The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs
What does Market orientation reduce the risk of?
Reduces, but does not eliminate, the risk of new product development
What is Market research?
Market research is the collection and analysis of data and information to inform a business about its market
What is the data collected in Market research used for?
identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour
What is Primary market research?
It involves the collection of first hand data that did not exist before and therefore it is original data
Secondary market research
It is research that has already been undertaken by another organisation and therefore already exists
What are some examples of Primary market research?
Surveys and questionnaires I.e Postal Telephone Face–to-face On-line
In depth interviews I.e
Focus groups
Observations
What are some examples of Secondary market research?
National and Local Government e.g. Office for National Statistics
Market Research organisations e.g. MORI, MINTEL
Professional bodies e.g. ACCA
Trade unions and Confederation of British Industry (CBI)
International bodies e.g. EU, OECD
Academic organisations e.g. universities
Newspapers and magazines
The Internet
What is Qualitative data?
Qualitative research is the gathering of non-statistical information that gives a company indepth insight into the reasons for human behaviour
What is Quantitative data?
Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons
What are some limmitations of market research?
Past data and trends may not be a fair indication of the future
Accuracy of research findings
Dependent upon ability to correctly analyse findings
Financial and opportunity costs
Bias
Why is a Sample usefull?
Businesses cannot ask for the opinions of all potential customers and therefore try to choose a representative sample
What is a Sample?
A sample is a group of subjects that has been chosen from a larger group, the population, for investigation
What does the value of a sample depend on?
The sample technique used
How the sample was carried out
The size of the sample
What does the Size of the Sample depend on?
The budget available
The importance of accuracy
Degree of confidence in results
What are the three types of sampling?
Random
Quota
Stratisfied
What is Random sampling?
a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected
What is Quota sampling?
The population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup
What is Stratisfied sampling?
The population is first segmented into subgroups before respondents are randomly selected from within that subgroup
What 3 Uses does ICT have In market research?
collection and analysis of research data Via:
Websites
Socail networking
Databases
What is Market Segmentation?
Market segmentation occurs when the market is split into subgroups of consumers with similar characteristics
What are the 4 different Segmentation Methods?
Demographic
Geographic
Income
Behavioural
What is Demographic Segmentation?
Identifies subgroups of the population based on their demographic profile or characteristics
What are the 7 different ways of Demographic Segmenttion?
Age Gender Level of education Race Religion Family size Stage in life e.g. empty nesters
What is Geographical Segmentation?
Geographic segmentation defines market categories based on where people live e.g. regions, cities or neighbourhoods
Why is Geographical Segmentation importent?
People in different geographical areas display different characteristics and needs e.g.
What are the 6 groups of Income Segmentation?
A B C1 C2 D E
What is Income Segmentation?
Identifying subgroups of the market based on their levels of income and profession
What is Behavioural Segmentation?
Characterises subgroups based on the behavioural patterns of the consumer rather than their characteristics
What are some benefits of segmentation to companies?
Advertising can be targeted at specific market segments so that advertising spend is more effective
The most profitable and least profitable customers can be identified
Least profitable markets can be avoided
It becomes easier to identify new products
