1.1.2.Market Research

Question 1

Product orientation

Answer 1

-Marketing that focuses on creating a product first and then finding a market
-Product will sell itself
-May lead to business failure as you lose focus of what the market/consumers are looking for
-Product research, testing and focus

Question 2

Market orientation

Answer 2

-Marketing that focuses on needs of consumers and creates a product based on their wants. Consumers views at heart of decision making for business.
-Guaranteed customers, benefit from increased demand, profits and a valued brand image
-Market research , testing and customer focus

Question 3

Primary research

Answer 3

-Info directly from consumers in target market via. surveys, interviews etc
+ves:
-Info focused on needs of business
-Up to date and can ask specific qs
-ves:
-Sample size may be too small+ unrepresentative
-Bias
-May need to hire specialist market research agency. Expensive

Question 4

Secondary research

Answer 4

-Collection of data that already exists
ie.gov reports
+ves:
-Info already available=quicker
-Info often free=lower costs
-Suitable for smaller businesses

-ves:
-Info may lack relevance
-Can be expensive to purchase from specialist
-Io may be out of date

Question 5

Use of ICT to support Market Research

Answer 5

1.Company websites-Allows collection of primary data more cheaply. Tracking searches and analysing reviews for info
2.Databases- Store large amounts of info
3.Social networking- Gathering info about consumers via surveys, polls etc

Question 6

Market segmentation

Answer 6

-Single market is divided into segments via demographics
+ves:
-Consumers have different tastes and preferences
-Meets different wants and needs
-Less expensive and wasteful
-Can increase loyalty if needs are met

-ves:
-May be difficult to identify a segment and consumers can belong to multiple
-Requires more detailed research
-Segment may be identified but too small to invest into