1.1.2 Market research/ Segmentation/ Product and Market orientation Flashcards
market research
the gathering and analysis of research to help support the implementation of marketing strategy
product orientation
an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
what are the tools of product orientation?
product research
product testing
product focus
market orientation
an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
factors of market orientation
-consumers are at the centre of marketing decisions
-products will be developed which respond to consumer needs
what are the tools of market orientation?
market research
market testing
customer focus
why is market orientation linked to marketing success?
markets are more dynamic
customers are becoming more specific and demanding
barriers to market entry are getting lower
advantages of market orientation
-close fit with customer expectations
-greater responsiveness to changes in customer needs
disadvantages of market orientation
-regular changes in the appearance of function of a product may leave customers confused about what the brand really stands for
-may struggle to compete against product orientated businesses that invest heavily in new product features and advanced technologies
advantages of product orientation
-allows the business to focus on product quality and innovation
-they can spend most of their efforts and money on doing this
disadvantages of product orientation
-by ignoring customer priorities, the product may not sell very well
what are the two types of market research
primary and secondary
primary research
data collected first hand for a specific research purpose
advantages of primary research
- information gathered is focused on the needs of the business
-can get in depth information form respondents
-more up to date data, can be used to ask specific questions- increasing relevance
disadvantages of primary research
-sample size may be too small and unrepresentative of all customers- unreliable results
-researcher bias may cause respondents to answer questions in a particular way
-business may have to hire a specialist market research agency to help, this can be expensive and time consuming
how does observation work?
(primary research method)
watching how consumers behave, this provides insights but can not answer all questions.
-works well in retail markets
how do surveys work?
(primary research method)
ask a series of questions to a certain number of people, the result from the sample are used to represent a larger audience
-a wider range of responses can be achieved using online survey tools
how do online surveys work?
(primary research method)
low cost and more popular, they are used by smaller businesses as a way of capturing the views of existing and potential customers
how do face-to-face surveys work?
(primary research method)
personal interviews in person are conducted, can be costly but good to gain detailed insights
how do focus groups work?
(primary research method)
these are groups of potential customers that are brought together to discuss their feelings about the product or market, good to gain insights into customer tastes and preferences
how does test marketing work?
(primary research method)
free samples are provided for a limited period of time to the target market to gauge their response to the product
secondary research
data that already exists and which has been collected for a different purpose
advantages of secondary research
-information is already available and is quicker to collect
-information is often free, lower costs
-more suitable for smaller businesses that lacks a large marketing budget/ research expertise
disadvantages of secondary research
-information has been collected for another purpose- lacks relevance
-can be expensive to purchase market specific secondary research from specialist companies
-information may be out of data (especially in dynamic markets)