3.3.2 Flashcards
market research
what is a product-orientated business?
a business which develops products/services based upon what they are good at making or doing rather than what the customers want
what are the pros of a product-orientated business?
- increase in quality
- specialisation -> allows you to increase product performance and market share and decrease product portfolio
what are the cons of a product-orientated business?
- may lead to dissatisfied customers as not consulted
- decrease in stakeholder value
- smaller target audience
what is a market-orientated business?
where a business develops products/services based upon the wants and needs of their customers rather than what the business views the customer wanting
what are the pros of a market orientated business?
- should lead to market share due to meeting wants and needs
- could lead to a larger customer base
- can respond to external influences e.g. trends
what are the cons of a market orientated business?
- expensive + time consuming
- may reduce customer base as you can’t please everyone
what is market research?
the process of gathering information about the market and customers needs and wants in order to help them inform business decisions
what are the main purposes of market research?
- identifying and understanding the market they wish to enter through reviewing:
> competitors
> potential customer needs - identifying any gaps in the market
- to reduce risk
- to inform business decisions
what are the two types of research?
- primary
- secondary
what is primary research (field research)?
new research that is carried out first hand. usually to answer a specific question
what are the types of primary research?
- questionnaire
- interviews
- surveys
- focus groups
- observation
what are the types of secondary research? (desk research)
- the government
- loyalty cards
- past advertising campaigns
- competitors
- trade publication associations
- the general media
- social media stats
- commercial market research companies
what is quantative data?
numerical data that can be measured
what are the pros for quantative data?
- not as time-consuming
- easier to process
- not as much bias
what are the cons for quantative data?
- not in depth
- less opinions received
what is qualitative data?
descriptive data that cannot be measured in numbers
what are the pros of qualitative data?
- in-depth reasoning
- more opinions received
what are the cons of qualitative data?
- time-consuming
- difficult to process
- potential bias from leading questions
what are the types of sampling methods?
- quota
- random
-stratified
what is quota sampling?
representative of the overall population being targeted
what is random sampling?
each sample has an equal probability of being chosen
- a sample is chosen randomly
what is stratified sampling?
population separated into groups based upon income, age, location etc. then random sampled from each group selected
why may technology be beneficial in market research?
- wider reach
- easier to target customers
- free or low costs
- saves time in collection
- saves time in analysing data as data does not need to be input
what is market mapping?
the process of creating a diagram that identifies all products/services in a market and maps them against two of their features
