Market Research

Question 1

WHAT is PRODUCT ORIONETATION? - WHAT does it mean if a business is PRODUCT ORIENTATED?

Answer 1

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)

Question 2

WHAT is MARKET ORIENTATION? - WHAT does it mean if a business is MARKET ORIENTATED

Answer 2

When a business ADAPTS its products, according to dynamic comsumer preferences, found within the market

Question 3

BENEFITS of being PRODUCT ORIENTATED:

Answer 3

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

Question 4

DRAWBACKS of being PRODUCT ORIENTATED

Answer 4

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

Question 5

BENEFITS of being MARKET ORIENTATED

Answer 5

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

Question 6

DRAWBACKS of being MARKET ORIENATED

Answer 6

MARKET RESEARCH can be TIME CONSUMING & DIFFICULT TO IDENTIFY CONSUMER SPECIFIC WANTS/NEEDS

MARKET RESEARCH & PRODUCT DEVELOPMENT can be EXPENSIVE

Question 7

TYPES OF MARKET RESEARCH:

Answer 7

PRIMARY RESEARCH - Surveys, Interviews through phone or in-person.

SECONDARY RESEARCH - Internet services (Google), Market Research reports from market/industry specialists, trade/press magazines

Question 8

BENEFITS of using PRIMARY RESEARCH:

Answer 8

DATA can be KEPT PRIVATE

RESEARCH is likely to be FOCUSED ON business/CONSUMER NEEDS

FOCUSED TOWARDS achieving MARKETING OBJECTIVES

NO EXTERNAL BIASES

Question 9

DRAWBACKS of using PRIMARY RESEARCH DATA:

Answer 9

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

Question 10

BENEFITS of using SECONDARY RESEARCH DATA:

Answer 10

LESS TIME-COMSUMING

Maybe LESS EXPENSIVE

can be accessed EASILY & FAST

Data is gathered from INDUSTRY SPECIALISITS = Reliable

Question 11

DRAWBACKS of using SECONDARY RESEARCH DATA:

Answer 11

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

Question 12

WHAT is QUANTITATIVE DATA?

Answer 12

RESEARCH that can be MEASURED NUMERICALLY

Focuses on; Profit figures, Market Share %

Question 13

WHAT is QUALITATIVE DATA?

Answer 13

RESEARCH empahised on CONSUMER PREFERENCES & SOCIATAL NORMS.

Question 14

BENEFITS of using QUANTITATIVE DATA:

Answer 14

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)

Question 15

DRAWBACKS of using QUANTITATIVE DATA SOURCES:

Answer 15

IGNORES QUALITATIVE POINTS

FIGURES may NOT be REFLECTIVE of CURRENT MARKET ENVIRONMENT

May be INVALID if SAMPLE SIZE/METHOD is INVALID

Question 16

BENEFITS OF USING QUALITATIVE DATA:

Answer 16

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

Question 17

DRAWBACKS of using QUALITATIVE DATA:

Answer 17

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!

Question 18

WHAT is SAMPLING?

Answer 18

The use of a SMALL PROPORTION of consumers from a target market, who are REPRESENTATIVE of the ENTIRE TARGET MARKET.

Question 19

BENFITS of SAMPLING:

Answer 19

CHEAPER & EASIER to CONTROL

EASY TO MEASURE RESULTS

PROVIDES INSIGHTS TOWARDS UNDERSTANDING CONSUMER PREFERENCES within TARGET MARKET

Question 20

DRAWBACKS of SAMPLING:

Answer 20

RESULTS are NOT ENTIRELY REFLECTIVE OF TARGET MARKET

LESS EEFFECTIVE WITHIN RAPID/DYNAMIC MARKETS

INCUR GREAT COSTS, if businesses rely on inaccurate data

Question 21

How can I.T be used to support MARKET RESEARCH?

Answer 21

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)

Question 22

WHAT is MARKET SEGMENTATION?

Answer 22

When a business DIVIDES A MARKET into parts, in order to RECOGNISE the various WANTS/NEEDS of consumers within each part of the market

Question 23

HOW can a market be SEGMENTED?

Answer 23

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

Question 24

BENEFITS OF MARKET SEGMENTATION:

Answer 24

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

Question 25

DRAWBACKS OF MARKET SEGMENTATION:

Answer 25

RESEARCH can be UN-REFLECTIVE of target market, if consumer tastes change

Knowing who/where to market products towarfs does NOT guarentee sales!