Market Research Flashcards
WHAT is PRODUCT ORIONETATION? - WHAT does it mean if a business is PRODUCT ORIENTATED?
When a business FOCUSES SOLELY on the production process of its products
DONE TO ACHIEVE DIFFERENTIATION/USP/ COMPETITIVE ADVANTAGE.
Through CHANGE of 4P’s (improving products quality, function or aesthetic, place of sale, change in price)
WHAT is MARKET ORIENTATION? - WHAT does it mean if a business is MARKET ORIENTATED
When a business ADAPTS its products, according to dynamic comsumer preferences, found within the market
BENEFITS of being PRODUCT ORIENTATED:
Allows business to establish/MAINTAIN ETHNOCENTRIC MARKETING APPROACHES
Allows business to SELL AT HIGHER PRICE IF MARKET RESEARCH FITS with INTENDED TARGET MARKET
Possible ability to achieve ECONOMIES OF SCALE
DRAWBACKS of being PRODUCT ORIENTATED
NEGLECTS CONSUMERS WANTS/NEEDS
(-) PR
DECLINE IN MARKET SHARE
EXPENSIVE if production involves MANY HIGH QUALITY RARE raw materials =
depletion of natural resources =
unethical =
(-) PR
Products are EASY TO REPLICATE for competitors
BENEFITS of being MARKET ORIENTATED
Takes into account CONSUMERS WANTS/NEEDS
(+) PR
Harder for competitors to copy products
COMPETITIVE ADVANTAGE
Ability to charge PREMIUM PRICES
DIFFERENTIATED PRODUCTS STIMULATE DEMAND
may lead to GREATER MARKET GROWTH
Greater revenues + higher/SUSTAINABLE PROFIT MARGINS
DRAWBACKS of being MARKET ORIENATED
MARKET RESEARCH can be TIME CONSUMING & DIFFICULT TO IDENTIFY CONSUMER SPECIFIC WANTS/NEEDS
MARKET RESEARCH & PRODUCT DEVELOPMENT can be EXPENSIVE
TYPES OF MARKET RESEARCH:
PRIMARY RESEARCH - Surveys, Interviews through phone or in-person.
SECONDARY RESEARCH - Internet services (Google), Market Research reports from market/industry specialists, trade/press magazines
BENEFITS of using PRIMARY RESEARCH:
DATA can be KEPT PRIVATE
RESEARCH is likely to be FOCUSED ON business/CONSUMER NEEDS
FOCUSED TOWARDS achieving MARKETING OBJECTIVES
NO EXTERNAL BIASES
DRAWBACKS of using PRIMARY RESEARCH DATA:
TIME CONSUMING
Can be EXPENSIVE
SAMPLE of target market, may not FULLY REPRESENT ENTIRE TARGET MARKET opinions/consumer preferences
Surveys may he subject to BIAS FROM BUSINESS
BENEFITS of using SECONDARY RESEARCH DATA:
LESS TIME-COMSUMING
Maybe LESS EXPENSIVE
can be accessed EASILY & FAST
Data is gathered from INDUSTRY SPECIALISITS = Reliable
DRAWBACKS of using SECONDARY RESEARCH DATA:
Can be EXPENSIVE if business OUTSOURCES market research to SPECIALIST COMPANY
Subject to BIAS from INDUSTRY PROFESSIONAL/Specialist company
Data can become OUTDATED if CONSUMER PREFERENCES ARE DYNAMIC
WHAT is QUANTITATIVE DATA?
RESEARCH that can be MEASURED NUMERICALLY
Focuses on; Profit figures, Market Share %
WHAT is QUALITATIVE DATA?
RESEARCH empahised on CONSUMER PREFERENCES & SOCIATAL NORMS.
BENEFITS of using QUANTITATIVE DATA:
Sources are VALID/RELIABLE - Able to be PROOF-CHECKED
EASY TO ANALYSE
Subject to LESS BIAS
Can be COMPARED AGAINTS OTHER DATA (known competitors data or a businesses pre-existing data)
DRAWBACKS of using QUANTITATIVE DATA SOURCES:
IGNORES QUALITATIVE POINTS
FIGURES may NOT be REFLECTIVE of CURRENT MARKET ENVIRONMENT
May be INVALID if SAMPLE SIZE/METHOD is INVALID
BENEFITS OF USING QUALITATIVE DATA:
ACCOUNTS for CONSUMER TASTES/PREFERENCES & THIRD PARTIES
Can HIGHLIGHT ISSUES of a product, unknown to a business
Allows businesses to GROW their UNDERSTANDING of TARGET MARKET & UNDERSTAND WHERE TO FOCUS R&D on its products
DRAWBACKS of using QUALITATIVE DATA:
Consumer tastes/preferences can CHANGE RAPIDLY
Data may not be REFLECTIVE of CURRENT MARKET
DIFFICULT TO ANALYSE & UNDERSTAND
Can be TIME-COMSUMING & EXPENSIVE to carry out, especially if research is outsourced!
WHAT is SAMPLING?
The use of a SMALL PROPORTION of consumers from a target market, who are REPRESENTATIVE of the ENTIRE TARGET MARKET.
BENFITS of SAMPLING:
CHEAPER & EASIER to CONTROL
EASY TO MEASURE RESULTS
PROVIDES INSIGHTS TOWARDS UNDERSTANDING CONSUMER PREFERENCES within TARGET MARKET
DRAWBACKS of SAMPLING:
RESULTS are NOT ENTIRELY REFLECTIVE OF TARGET MARKET
LESS EEFFECTIVE WITHIN RAPID/DYNAMIC MARKETS
INCUR GREAT COSTS, if businesses rely on inaccurate data
How can I.T be used to support MARKET RESEARCH?
COMPANY WEBSITES/SOCIAL MEDIA, can be used to PROMOTE products DIRECTLY TOWARDS TARGET MARKET
‘COOKIES’ can be used to LEARN EACH COMSUMERS TASTE/PREFERENCES (PRIMARY & SECONDARY, QUALITATIVE RESEARCH)
I.T can be USED TO ANALYSE large sets of data (BIG DATA)
I.T can use SMART ALGORITHMS to PREDICT MARKET TRENDS (DATA MINING & SECONDARY, QUANTITATIVE RESEARCH)
WHAT is MARKET SEGMENTATION?
When a business DIVIDES A MARKET into parts, in order to RECOGNISE the various WANTS/NEEDS of consumers within each part of the market
HOW can a market be SEGMENTED?
DEMONGRAPHIC - Age, Gender, Income, ethnicity & religion
GEOGRAPHIC - Grouping consumers based on where they live - through Local towns, cities, nation, INTL & GLOBAL
BEHAVIOURAL-GRAPHIC - Consumer reactions to a product, their usage rates & brand loyalty (DEMAND)
PSYCHOGRAPHIC - Grouping customers acvording to their own VALUES, BELIEFS & RELIGIONS
BENEFITS OF MARKET SEGMENTATION:
Allows a business to promote their products more effectively to desired target market
Allows firm to potentially increase market share
Aids with product development as businsses understand target market preferences
