Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business ALevel: Theme 1 > Market Research 1.1.2 > Flashcards

Market Research 1.1.2 Flashcards

1
Q

What is product orientation?

A

The product is the most important factor when designing and creating products for a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe a product orientated business

A

• Inward looking approach to new product development
• Informed by scientific research and technical development (R&D)
• The business will concentrate on producing high-quality products and then later look for a market to sell to
• Technologically advanced product
E.g. Apple products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Definition of market orientation

A

The consumer is the most important factor in providing products for the market, the business has a sensitivity to customer requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Describe a market orientated business

A

• Outward looking approach
• Focus on what products to consumers wants
Informed by market research
• Needs of customers then adapting or producing products to meet these needs
E.g. Amazon, Coca-Cola

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Benefits of product orientation

A
  • Better quality
  • Ability to be innovative adapt (spends more time doing R&D)
  • Improves business to business outsourcing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Drawbacks of product orientation

A

-Cost
-Higher production costs
-No guarantee of product success
-Disregard customers needs/ trends


How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Benefits of market orientation

A
  • Meeting customer needs
  • Better customer service – customer loyalty
  • Footfall- higher levels of customer coming in and out of your shop
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Drawbacks of market orientation

A
  • Can be expensive – R&D cost (market research)
  • Time consuming 
  • Reactive approach rather than proactive
  • Not always innovative, hard to adapt is market is dynamic
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is product portfolio?

A

Range of products that the business offers 

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the two types of market research?

A

Primary research and secondary research

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the definition of primary research?

A

Involves the collection of firsthand data that has not existed before and therefore is original data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Name three types of primary research

A
  1. Surveys- A business can gather quantitive (numbers) and qualitative (opinion base) data
  2. Interviews- a primary research team may carry out an interview either individually or with a group
  3. Loyalty cards- purchases on store cards can be used to track consumer buyer behaviours and further help the business of a customer specific offers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the definition of secondary research?

A

Is research that has already been undertaken by another organisation and therefore already exists

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Name three types of secondary research

A

1. Internet

  1. Market reports– are created by specialist teams (e.g. Mintel) trends and reports reports can cost between £1000-£3000
  2. Annual report– is required if a business is a limited company or a plc it will have information such as balance sheet, profit and loss statement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Benefits of primary research

A
  • Kept private not publicly available
  • Directly focused to research objectives
  • More detailed insights – particularly into customer views
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Drawbacks of primary research

A
  • Time consuming and costly to obtain
  • Sampling may not be representative
  • Risk of survey bias
17
Q

Benefits of secondary research

A
  • Quick to access and use
  • Often free and easy to obtain
  • Good source of market insights
18
Q

Drawbacks of secondary research

A
  • Can quickly become out of date
  • Specialist reports often quite expensive
  • Not tailored to business needs
19
Q

What is quantitive data?

A

Involves gathering data and measuring responses
Data displayed in charts/graphs as statistics and percentages
E.g. do you like school? Yes or no?

20
Q

What is qualitative data?

A 
Seeks to gather and explore feelings and thoughts about a product from consumers
Information gathered by: 
-focus group discussions
-interview with the customers 
-observation of buyer behaviour
21
Q

Definition of sampling

A

A sample is a group of subjects that have been chosen from a larger group; the population, for investigation

22
Q

What are the different types of sampling techniques?

A
  • Random
  • Quota
  • Stratified
23
Q

What is market segmentation?

A

Dividing the population/target market into identifiable groups of individuals (or part of a market) by consumers share one (or more) characteristics or needs

24
Q

What are the four main categories of market segment?

A
  1. Demographic segments
  2. Income segments
  3. Behavioural segments
  4. Geographic segments
25
Q

What is demographic segmentation?

A

Identify subgroups of the population based on their demographic profile or characteristics e.g. age, gender, race, stage in life, religion, levels of education, family size

26
Q

What is geographic segmentation?

A

Defines market categories based on where people live e.g. regions, cities or neighbourhoods

27
Q

What is behavioural segmentation?

A

Characterises subgroups based on the behavioural patterns of the consumer rather than their characteristics
E.g. reasons for making purchases, time of purchase (seasonal,weekly etc)

28
Q

What is income segmentation?

A

Identifying subgroups of the market based on the levels of income and profession 

29
Q

Benefits of market segmentation

A
  • Advertising can be targeted at specific segment so that advertising spend is more effective
  • The most profitable and least profitable customers can be identified
  • Least profitable markets can be avoided
  • It can be easier to identify new products
  • Helps the firm improve existing products and customer service
30
Q

Drawbacks of market segmentation

A
  • Segmentation is an imprecise science – data is not always available, up-to-date or reliable
  • just because you can identify a segment doesn’t mean you can reach the customer in it
  • Markets are increasingly dynamic – fast changing; so too are the segments
31
Q

What is product differentiation?

A

Having an unique feature that makes a product stand out from other products in the market place E.g. USPs 

32
Q

What does product differentiation allow a business to do?

A
  • Charge a premium price
  • Gain brand loyalty
  • Add value
33
Q

Definition of adding value

A

Is the difference between the price that is charged to the customer and the cost of inputs required to create the product or service

34
Q

Formula for added value

A

Selling price – production costs

35
Q

How does a business add value?

A
  • Design
  • Production methods
  • Marketing methods – creating an image that makes the product more desirable, a brand differentiation advantage
36
Q

Benefits of added value

A
  • Charge higher prices – leads to increase profit
  • Protection against competitors – can offer lower prices leads to increase market share
  • Customer loyalty – leads to repeat purchases , sustained sales

Business ALevel: Theme 1 (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions