Market Research. Flashcards
Product Orientation VS Market Orientation.
Product Orientation is an inward looking approach focusing on product as the most important factor when producing products for market.
Market Orientation is an outward looking approach that focuses on the consumers wants and needs when producing and designing product.
Pros & Cons of Product Orientation.
+High quality products- customers satisfied as products of high value = repeated purchases & CA.
+Ability to be innovative- adapt to market needs
- Production costs increase - no economies of scale- minimise profits
- Product success at risk if the production is a long process- customers needs change overtime.
Pros & Cons of Market Orientation.
+Meets customer needs = customer loyalty - repeated purchases = increase profit.
+Consumers at centre of marketing decisions - increase brand image- CA
- Re-active not pro-active - slow innovations
- Invest in R&D may be time consuming and costly
What is Market Research.
Market research is the analysis of info on market and developing the success of business in market. Market research. Market research can be qualitative or quantitative.
Why to Market Research:
-reduces risk of product failure when entering new markets - build brand image.
-find needs and wants of consumers to understand consumer behaviour and appeal to their taste.
-finds level of demand in market to supply according- adjust production - minimise waste & increase capacity utilisation- decrease costs.
-identify how much customers pay- find ped to come up with pricing strategy.
-identify comp.
Primary research VS Secondary research.
- Primary research is first hand data that is collected directly from consumers and hadn’t existed before.
- Secondary research has been undertaken by another organisation meaning data already exists.
Methods of primary research
Surveys- use sampling for surveying group of customers w open/closed questions
Interviews- (formal/informal) questions similar to surveys to gauge reactions and ask follow up questions for new ideas = qual data
-Observation- gather data by studying customer behaviour eg consumer preferences for packaging
-Loyalty Cards- purchases help track customers behaviour = quant, representative.
-Focus Groups- group of target market demographic respondents take part in a product trial and give feedback on marketing mix
Methods of secondary research:
Annual Reports- report business financial health=quant.
Government Sources=quant.
News- considering launching product, news provide latest updates.
Market Reports- created by specialist teams to regulate market eg identify market size for finding ease of doing business.
Internet.
Pros of Primary Research.
+Data collected first hand= meaning data hasn’t been used before - specific to research objectives.
+more up to date and realistic than secondary data.
+help go in depth into chosen area of research objective- give reasons to customer behaviour.
Cons of Primary Research.
- Time consuming & expensive.
- Sample sizes too small - unrepresentative of customers
- risk of bias- research outcomes manipulated to support research objectives.
-lack of expertise if carried out by worker - hire specialist to help-expensive and time-consuming
- Risk of research bias.
Pros of Secondary Research.
+Quick & easy access on internet usually cheaper to collect - lower costs helps with budgeting
+sport patterns in trends in the market over time as its based on extrapolation - easier to predict the future
+Often free.
Cons of Secondary Research.
- Not tailored to business needs or specific to research objective -lack relevance/not be factually correct
-can be outdated info especially in dynamic markets.
-longer/more detailed reports expensive
- Can easily become out of date.
Quantitative VS Qualitative.
- Quantitative research involves gathering factual and measurable data to spot trends/patterns.
- Qualitative research involved gathering thoughts of customer.
Use of ICT to support market researching:
Company websites- collects primary data cheaply by tracking consumer searches & how often on website
Company websites- gather secondary data about rivals eg info on products/ prices.
Databases- store large amount of customer info e.g loyalty cards.
Databases- collect customer e-mail addresses to target their interests for other researches like surveys.
Social networking- gather info on customers by online social channels such as Twitter and Facebook - help run surveys online to track opinions about brands
What is Sampling & types.
Sampling is when a group of subjects are chosen from a larger group for investigation. Sample characteristics is based on targeted audience for new product.
1) Random sampling.
2) Quota.
3) Stratified.
