1.1.2 Product and Market orientation Flashcards
What is Product orientation?
Where the business focuses on the production process and the product itself
What is market orientation?
Where the business focuses on the market, producing a product for the market
What does product orientation do?
Focus on quality of product then try’s to find a market for product
What does market orientation do?
Make a product to customer needs.
Identify,Review and analyse customer needs
Does market orientation increase success rate?
Yes
What is market research?
Collection, analysis and collation of data which enables data which businesses to identify what customers want and need in order to inform their marketing strategy.
Why is market research important for businesses?
Inform decisions
React+ prepare
Assess competition
Assess the potential demand for products
What is primary research?
Collecting data first hand
Name three methods of primary research.
Surveys
Interviews
Observations
What is secondary research?
Use of information that has already been collected.
What aree the two types of secondary research?
1.Internal
2.External
What are the two types of secondary research?
1.Internal
2.External
Name three methods of secondary research.
Annual report
News
Government resources
Name the limitations of market research.
-Past data may not be a fair indication
-Accuracy of research findings
-Financial and opportunity costs
-Reliability, bias and validity
-Dependent on ability to correctly analyse findings
What is market segmentation?
Markets divided into different sections.
What are the Four types of market segmentation?
1.Demographic
2.Geographic
3.Income group
4. Behavioral
What is demographic?
Age, gender, social group
What is Geographic?
Where customers are from
Easy method
What is income group?
Based on the income: annual or monthly
Socio-economic group
What is behavioral?
Based on consumers behaviour rather than characteristics.
Name four benefits of market segmentation.
1.Could lead to USP
2.Easier to focus on customer wants
3.Advertising can be more effective
4.Allows a business to identify segments that will be more profitable and successful
Name 4 drawbacks of market segmentation.
1.Can be imprecise science
2.Not always profitable
3.Markets are increasingly dynamic
4.Some customers may feel alienated
What is Marketing positioning?
How individual products or brands are seen in relation to their competition by consumers.
What is market positioning?
The positioning of a brand influenced by consumers and other brands
What is market map?
A grid showing 2 features of a market.
What is a competitive advantage?
A feature of a business that allows it to perform more successfully than others in the market.
What should a competitive advantage be?
sustainable in the long term.
How is competitive advantage achieved through?
Offer more for less
Offer more for more
Offer more for the same
Offer less for much less
Name two ways to achieve competitive advantage?
1.Cost advantage
2.Differentiation.
What is cost advantage?
Offering the same quality product but at a lower price.
What is differentiation?
Superior product through offering a usp.
What is added value?
The process of increasing the worth of a product by modifying them.
Name three advantages of added value?
1.Charge higher price
2.Competitive advantage
3.Differentiation
Name three ways of adding value.
1.Technology
2.Customer service
3.USP
What is product differentiation?
Having a unique feature that makes a product stand out from other products.
What is a USP?
A feature of a product that allows it to be differentiated from the others.
