Market Research 1.1.2 Flashcards
Product orientation
Focuses on the characteristics of the product rather than the needs of the consumer. Emphasis on creating product then finding market with the belief the product will sell itself. If too product orientated business will move further away from what market is looking for.
Market orientation
Focuses on the needs of consumers and uses this to design products that meet needs. Consumers are at the centre of decision making as products developed to respond to needs which will increase demand, profits and create a valued brand image.
What is market research?
Objective collection, compilation and analysis of information about a market.
Benefits of market research
- reduce risk
- anticipate future needs and wants
- understand consumer behaviour
- identify potential demand
- identify how much consumers are prepared to pay
- identify competitors and their strengths and weaknesses
Primary research
Process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, etc
Advantages of primary research
- information is focused needs of the business and is not available to rivals
- in-depth information from respondents
- up-to-date and specific so more relevant
Disadvantages of primary research
- sample size may be too small do unrepresentative
- bias may mean response are guided
- expensive and time-consuming
Secondary research
The collection, compilation, and analysis of data that already exists
Advantages of secondary research
- information already available so quicker to collect
- often free/ cheaper
Disadvantages of secondary research
- may lack relevance or not factually correct
- expensive to purchase from specialist companies
- optionally out-of-date
Company websites in market research
Collect primary date more cheaply by tracking searches and analysing reviews as well a secondary data about rivals such as prices.
Databases in market research
Store large amounts of customer information.
Social networking in market research
Gather information via social media by running quick polls and surveys.
What is market segmentation?
Process in which a single market is divided into sub markets or ‘segments’ representing a slightly different set of characteristics.
Advantages of market segmentation
- recognises that not all consumers are identical
- products and marketing activities can be altered to meet different needs of different segments
- less expensive and wasteful
- may increase loyalty if needs are met
