Market research 1.1.2 Flashcards
Define product orientation
Is an inward approach that focuses on its product or service’s quality and performance.
What does a business concentrate on with Product orientation?
The business will concentrate on producing high quality products and then later look to create a market for them
What is Market orientation?
Is an outward-looking approach to new product development were the key focus is on what products the consumer wants.
What does a business concentrate on with Market orientation?
The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs.
What does Market orientation reduce the risk of?
Reduces, but does not eliminate, the risk of new product development
What is Market research?
Market research is the collection and analysis of data and information to inform a business about its market.
What is the data collected in Market research used for?
Identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour.
Helps them stay on social trends.
What is Primary market research?
It involves the collection of first hand data that did not exist before and therefore it is original data.
What is Secondary market research
It is research that has already been undertaken by another organisation and therefore already exists.
Secondary market research uses data that already exists and has been collected by someone else for another purpose.
What are some examples of Primary market research?
Surveys/ questionnaires
Focus groups
Observations
Interviews
Experiments
What are some examples of Secondary market research?
Websites
Market reports
Newspapers
Magazines
Government reports
What are the strengths and weaknesses of primary market research?
+ Directly focused on research objectives = fit for purpose.
+ Tends to be more up-to-date than secondary research.
+ Provides more detailed insights – particularly into customer views.
- Time-consuming and often costly to obtain.
- Risk of survey bias – research samples may not be representative of the population.
What are the strengths and weaknesses of secondary market research?
+ It’s much cheaper.
+ It’s fairly quick.
+ It may allow businesses to spot trends. (extrapolation)
- Information is outdated which can lead to poorer decisions being made.
- The fact that the research for our business to collect is out there in the public domain so our rivals have access to it as well so which reduces the ability to gain a competitive advantage.
What is Qualitative data?
Qualitative research is the gathering of non-statistical information that gives a company in depth insight into the reasons for human behaviour.
What is Quantitative data?
Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons.
What are some limitations of market research?
Past data and trends may not be a fair indication of the future.
Accuracy of research findings.
Dependent upon ability to correctly analyse findings.
Financial and opportunity costs.
Bias
Why is a Sample useful?
Businesses cannot ask for the opinions of all potential customers and therefore try to choose a representative sample.
What is a Sample?
A sample is a group of subjects that has been chosen from a larger group, the population, for investigation.
What does the value of a sample depend on?
The sample technique used.
How the sample was carried out.
The size of the sample.
What does the Size of the Sample depend on?
The budget available.
The importance of accuracy.
Degree of confidence in results.
What are the four types of sampling?
Stratified
Random
Quota
Systematic
What is Random sampling?
Random sampling does not target any specific market segment. The people to be included in the sample are generated at random.
What is Quota sampling?
Is a sample that has been created to mimic the characteristics of a market. The researcher will choose the characteristics they wish the respondents to have.
What is Stratified sampling?
Is a type of sampling method in which the total population is divided into smaller groups or strata to complete the sampling process. The strata is formed based on some common characteristics in the population data.
