Edexcel- Market Research 1.1 Flashcards
Product orientation
Develop and make products which the business is good at
Market orientation
Business which identifies reviews and analyses consumer needs
Primary market research advantages
Private
Relevant
Up to date
Primary market research disadvantages
Time consuming
Costly
Sample size may be too small
Secondary market research advantages
Quicker
Low costs
Wide amount available
Secondary market research disadvantages
Not specific
Bias
Out of date
Sampling
Gathering of data from a sample of
Random
Large population
Stratified
Based on characteristics
Quota
Individuals represent a population
Sampling advantages
Useful research insight
Flexible and quick
Reduce risk
Sampling disadvantages
Sample is unrepresentative
Bias
Market tastes and preferences change
Advantage market orientation
Increase brand image
Disadvantage market orientation
Difficult because consumer needs are always changing
Advantage product orientation
Competitive advantage
Disadvantage product orientation
May not always be successful amongst consumers
Examples of primary research
Surveys
Focus groups
Interviewing
Examples of secondary research
Websites
Books
Articles
The use of ICT
Company websites
Databases
Social networking
Company websites with data
Allow businesses to collect primary data more cheaply
Company websites example of collecting data
Popups used on websites to gather information
Databases with data
Used to store large amounts of customer information
Databases example of collecting data
Tesco loyalty cards
Social networking with data
Focuses on gathering information about consumers
Social networking example of collecting data
Running of quick surveys and polls
Market segmentation
Process in which a single market is divided into sub markets
Market segmentation Advantages
Recognises that not all consumers are identical
Less expensive than targeting large market
Market segmentation disadvantages
May be to difficult to identify a segment
Requires more detailed market research which can be costly
