Market Research 1.1.2 Flashcards
What is product orientation?
The product is the most important factor when designing and creating products for a market
Describe a product orientated business
• 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
Definition of market orientation
The consumer is the most important factor in providing products for the market, the business has a sensitivity to customer requirements
Describe a market orientated business
• 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
Benefits of product orientation
- Better quality
- Ability to be innovative adapt (spends more time doing R&D)
- Improves business to business outsourcing
Drawbacks of product orientation
-Cost
-Higher production costs
-No guarantee of product success
-Disregard customers needs/ trends

Benefits of market orientation
- Meeting customer needs
- Better customer service – customer loyalty
- Footfall- higher levels of customer coming in and out of your shop
Drawbacks of market orientation
- 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
What is product portfolio?
Range of products that the business offers 
What are the two types of market research?
Primary research and secondary research
What is the definition of primary research?
Involves the collection of firsthand data that has not existed before and therefore is original data
Name three types of primary research
- Surveys- A business can gather quantitive (numbers) and qualitative (opinion base) data
- Interviews- a primary research team may carry out an interview either individually or with a group
- Loyalty cards- purchases on store cards can be used to track consumer buyer behaviours and further help the business of a customer specific offers
What is the definition of secondary research?
Is research that has already been undertaken by another organisation and therefore already exists
Name three types of secondary research
1. Internet
- Market reports– are created by specialist teams (e.g. Mintel) trends and reports reports can cost between £1000-£3000
- 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
Benefits of primary research
- Kept private not publicly available
- Directly focused to research objectives
- More detailed insights – particularly into customer views
Drawbacks of primary research
- Time consuming and costly to obtain
- Sampling may not be representative
- Risk of survey bias
Benefits of secondary research
- Quick to access and use
- Often free and easy to obtain
- Good source of market insights
Drawbacks of secondary research
- Can quickly become out of date
- Specialist reports often quite expensive
- Not tailored to business needs
What is quantitive data?
Involves gathering data and measuring responses
Data displayed in charts/graphs as statistics and percentages
E.g. do you like school? Yes or no?
What is qualitative data?
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
Definition of sampling
A sample is a group of subjects that have been chosen from a larger group; the population, for investigation
What are the different types of sampling techniques?
- Random
- Quota
- Stratified
What is market segmentation?
Dividing the population/target market into identifiable groups of individuals (or part of a market) by consumers share one (or more) characteristics or needs
What are the four main categories of market segment?
- Demographic segments
- Income segments
- Behavioural segments
- Geographic segments
