4.1 Marketing Researxh Flashcards
what is marketing
management process of identifying, anticipating and satisfying customer requirements (needs and wants) in a profitable way. It is also about managing customer relationships, which benefits various key stakeholder groups
two types of market orientation?
product orientation and marketing orientation. these two are alternative approaches to an organization’s marketing strategy
product orientation
business develops products based on what it’s good at doing. inward looking approach focuses on what it can produce and hopes the customers will like it. The products/services are innovative and new and temp the consumers to buy them.
marketing orientation
business responds to costumer needs and wants - designs products accordingly. bases its decisions on customers’ needs. outward looking and carries out market research to create it products or services. Produces products/services that meet consumers demands.
advantages of market orientation
Businesses have an increased confidence that their products will sell
A business can respond quickly to changes in the market
Can challenge new competitors due to regular feedback from customers
disadvantages market orientation
Can be expensive to carry out market research
Due to consumers needs and wants changing so frequently, businesses may find it hard to meet everyone’s needs
Can be very time consuming
disadvantages product orientation
Very risky because no market research is done
Can be costly if the business idea fails and consumers aren’t interested
Only good in some industries
advantages product orientation
Usually associated with high quality products
Can succeed in markets where change is slow and the business has a good reputation
Has control over its activities with a strong belief that consumers will purchase its products.
advantages product orientation
Usually associated with high quality products
Can succeed in markets where change is slow and the business has a good reputation
Has control over its activities with a strong belief that consumers will purchase its products.
what is market size
Market size is the total of all of the sales in a particular market for a certain period of time (usually a year).
3 reasons why the size of a market is important
a marketing manager can assess whether a market is worth entering or not.
businesses can calculate their own market share
growth or decline in a market can be identified.
2 ways to calculate market size
Volume (units) – Measures the number of goods bought by customers/sold by businesses. Ex- 7.5 million pizzas
Value (amount) – Measures the amount of money spent by customers on the goods sold. Ex- $90 million of pizzas
what is market share
This is the percentage of one firms’ share of the total sales in a market.
formula to calculate market share
market share % =
firms sales/total sales in the market x100
what is market growth
Market growth refers to an increase in the size of a market, usually measured by the rise in total sales revenue of the market or industry. Market growth is a common business objective
