1.1.2 sampling,segementation and orientation

Question 1

what is sampling

Answer 1

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

Question 2

what are the 3 different types of sampling

Answer 2

• random sample
• quota sample
• startified sample

Question 3

what does random sample mean

Answer 3

a group of respondents in which each member of the target population has an equal chance of being chosen

Question 4

what does quota sample mean

Answer 4

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

Question 5

what does stratified sample mean

Answer 5

a group of respondents are selected according to particular features ( e.g age, gender). the final selection is specifically,but not by the interviewer.

Question 6

what are the benefits of sampling

Answer 6

• if representative it can provide useful research insights
• can reduce risk and costs before making marketing decisions
• is flexible and relatively quick

Question 6

what are the draw backs of sampling

Answer 6

• 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

Question 7

what insights can effective market research provide

Answer 7

• 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)

Question 8

what is market segmentation

Answer 8

market segmentation occurs when the markeet is split into subgroups of consumers whith similar characteristics

Question 9

what are the main segmentation methods

Answer 9

• demographic
• geographic
• income
• behavioural

Question 10

what 3 characteristics demographic segmantation based on

Answer 10

• age
• gender
• religion

Question 11

what is geographic segmentation

Answer 11

geographic segmentation defines market categories based on where people live e.g regions ,cititws or neighbourhoods

Question 12

what is income segmentation

Answer 12

identifing subgroups of the market based on their levels of income and profession

Question 13

what is behavioural segmentation

Answer 13

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)

Question 14

what is psychographic segmentation

Answer 14

characterises subgroups based on their attitudes, opinions and lifestyles (sports goods like snowboards will be aimed towards ppl who r interested in extreme sports)

Question 15

what are some benefits of market segmentation

Answer 15

• easier to identify new products
• helps the firm improve existing products and customer service
• advertising spend is more effective

Question 16

what does production orientation mean

Answer 16

business develops products based on what it is good at doing e.g ford = cars

Question 17

what does marketing orientation

Answer 17

business responds to customer needs and wants - designs products accordingly (e.g nike - shoes could customise colour and shoe size

Question 18

how is product orientation different to marketing orientation

Answer 18

• 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

Question 19

how is market orientation different to product orientation

Answer 19

• 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

Question 20

why is market orientation crucial to marketing success?

Answer 20

-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