1.1.2 sampling,segementation and orientation Flashcards
what is sampling
sampling involves the gathering of data from sample of respondents, the results of which should be representative of the population (e.g target market) as a whole
what are the 3 different types of sampling
- random sample
- quota sample
- startified sample
what does random sample mean
a group of respondents in which each member of the target population has an equal chance of being chosen
what does quota sample mean
a group of repondents chosen from different segments (e.g age ,gender) the number of chosen are fixed to reflext the percentage in the total target population; they are not selected non randomly by the interviewer
what does stratified sample mean
a group of respondents are selected according to particular features ( e.g age, gender). the final selection is specifically,but not by the interviewer.
what are the benefits of sampling
- if representative it can provide useful research insights
- can reduce risk and costs before making marketing decisions
- is flexible and relatively quick
what are the draw backs of sampling
- sampling is unrepresentative of population (could lead to incorrect conclusions)
- risk of bias research questions
- less useful in market segments where customer tastes and preferences are changing frequently
what insights can effective market research provide
- dimensions of the market (size, structure,growth,trends etc)
- competitor strategies (market share , positioning and USPs)
- needs,wants and expectatios of customenrs (&how they are changing)
- market segments (existing and potential opportunities for new segments)
what is market segmentation
market segmentation occurs when the markeet is split into subgroups of consumers whith similar characteristics
what are the main segmentation methods
- demographic
- geographic
- income
- behavioural
what 3 characteristics demographic segmantation based on
- age
- gender
- religion
what is geographic segmentation
geographic segmentation defines market categories based on where people live e.g regions ,cititws or neighbourhoods
what is income segmentation
identifing 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 personal characteristics (reseons for making purcheses e.g needs wants,emotional, rewards)
what is psychographic segmentation
characterises subgroups based on their attitudes, opinions and lifestyles (sports goods like snowboards will be aimed towards ppl who r interested in extreme sports)
what are some benefits of market segmentation
- easier to identify new products
- helps the firm improve existing products and customer service
- advertising spend is more effective
what does production orientation mean
business develops products based on what it is good at doing e.g ford = cars
what does marketing orientation
business responds to customer needs and wants - designs products accordingly (e.g nike - shoes could customise colour and shoe size
how is product orientation different to marketing orientation
- informed by scientific research and technical development
- the business will concentrate on producing high quality products and later look to create a market for them
- mostly for technological advanced products
how is market orientation different to product orientation
- informed by market research
- the busines will concentrate on adapting their products to the customers needs
- reduces, but does not eliminate, the risk of new product development
why is market orientation crucial to marketing success?
-markets are much more dynamic (changing)
->e.g impact of technology is
changing = short product life
cycle
-customers are more demanding
->high expectations of
customer service and are
able to share experiences
on social media
-market entry getting lower (need a usp)
->many new entrants to consumer markets utillising onlie and mobile technology
