1.1.2 Market research Flashcards
market research
- gathers info about consumers competitors and distributors within a firms target market
- identify consumers buying habits and attitudes to current and future products
3 reasons for market research
needs/wants
demand
consumer behaviour
primary market research & 4 examples
field study
-finding & collection of first hand data that did not exist
examples; 1-surveys/questionnaires 2-interview 3-focus groups 4-observations
secondary market research
desk research
-finding/collecting info that already exists
examples;
- national/local government (professional bodies)
- newspapers and magazines
- internet
focus group
- form qualitative research
- group asked about perceptions towards a product/ concept/advertisement/packaging
4ADV and 4DIS of primary research
ADV 1-up to date 2-tailored to business needs(research obj) 3-rivals no access to data 4-asses customer psychology
DIS 1-expensive/time consuming 2-certain skills (focus groups) 3-risk of bias 4-useful if compared to existing data
4ADV and 4DIS of secondary research
ADV 1-quick and available 2-free or very cheap 3-good overview of market 4-based on actual sales figures/research on large scale
DIS 1-out of date = inaccurate 2-rivals can access this data 3-not tailored to own needs 4-expensive to buy reports
Quantitative research & 3 key aspects
based upon numerical data/statistical info
- larger samples = statistically valid
- survey (forms) various - telephone, online
key aspects
- sampling
- unbiased questionnaire
- assess validity of results
Qualitative research & 2 examples
psychologists obtaining in depth detailed info feelings, attitudes, opinions
(why/how behave, how feel about product)
1-focus groups (reveal problem & consumer psychology)
2-depth interviews (avoid swaying opinion)
4 ADV and 3 DIS of qualitative research
ADV 1-detailed 2-essential for important new PD 3-highlight issues that need addressing 4-way of testing elements of marketing mix
DIS
1-difficult to analyse
2-expensive collect/analyse = specialist
3-based opinions (risk sample not representative)
5 ADV and 3 DIS of quantitative research
ADV 1-easier to analyse 2-cheaper to collect 3-interpretation accessible 4-insight -> relevant trends 5-compared with data from other source
DIS
1-not as detailed
2-number don’t provide context
3-may lack reliability
Market orientation
- outward looking approach
- focus identify consumer needs/wants & tailor PD
- informed by MR
- reduces risk of new PD
-consumer most important factors = sensitivity to customer requirements
3 ADV and 2 DIS of being market oreintated
ADV
1-produce = customers want to buy
2-competitive advantage =higher price
3-brand loyalty = word of mouth mkting
DIS
1-changing trends (updated)
2-time consuming and costly
Product orientation
- inward looking approach
- focus innovation & R&D products = desire (produce)
- informed by scientific research & technical development
- high quality product (technologically advanced)
- benefit from FMA
4 ADV and 1 DIS of production orientation
ADV: 1-less likely to have conduct market research 2-spend money on R&D 3-innovative 4-harder for rivals to copy -> USP
DIS:
-unsuccessful - well established markets
ICT & 3 examples
information communication technology= support both collection & analysis of research data
3 examples
1-Website: feedback = blogs, no. of times/timings visitors, online polls/surveys, cookies
2-Data bases: data mining & trends
3-Social networking: reviews, blogs, likes, viral marketing & customer feedback
Market segmentation
dividing market
customers characteristics - behaviours
target specific segment
identify types of consumer wants & needs:
methods of segmentation:
- demographic
- geographic
- income
- behavioural
Demographic segmentation
- subgroups of pop based on demographic profile/characteristics
e. g. age, gender, education, race, religion, family (size/stage in life) - social/economic characteristics of individual household
Geographic segmentation
- defines market categories based on where people live
- e.g. regions/cities/neighbourhood
- different geographical areas = different characteristics/needs
Income segmentation
- identify subgroups of market based on levels of income/profession
- socio-economic groups
Behavioural segmentation
-characterises subgroups based on behavioural patterns of consumer rather than characteristics
5 Benefits of using market segmentation (as part of market research)
1-understand needs/wants
2-target advertising = cost effective
3-identify profitable customers & markets
4-identify new products
5- improve existing products & customer service
Sampling
targeting group chosen from larger group (representative of target population)
insight -> wants & needs of customer in a cost effective manner
-sample: group of respondents to represent population
3 things value of sampling:
&what is depends on:
chose representative sample
value depends on:
1-sample technique used
2-how sample was carried out
3-size of sample (budget, accuracy, confident results)
Random sampling
-sample selected for study from a population
-individual chosen entirely by chance = equal chance of being selected
every nth term in list
Quota sampling:
-pop:
-first segmented into subgroups
-judgement made selecting respondents (representative)
characteristic of target market
Stratified sampling:
-pop:
segmented into subgroups
respondents randomly selected from subgroup
TM selected at random
3 Benefits and 2 drawbacks of sampling:
Benefits:
1-even small = useful research insights
2- marketing decisions = decrease risk and costs
3-flexible & relatively quick
Drawbacks:
1-unrepresentative in pop =wrong conclusion
2-bias risk in research questions
bias
factor = research findings to be unrepresentative of whole population
market positioning
how individual products/brands seen in relation to competition by consumers
