Market Research Flashcards
product orientation
when a business focusus on the production process and the product itself. they put most effort into developing and making products wich they believe will sell well and ustomers will want
market orientation
a business tht continually identify, review and analyse the market and focus on customers needs
primary research
data collected by the business, it includes going directly to a source, usually customers ad perspective customers int he target market to ask questions and gather information
types include
1. interviews
2.surveys
3.questionarres
4.focus groups
5.visits to competitiors locations
seconary research
a type of research that has alredy been complied gathered organised and published by others, for smaller businesses most research is secondary as it is obtained faster and is more affordable than primary research
advantages of primary research
it is customised to the needs of the business
it is more reliable than secondary research
disadvantages of primary
it is expensive
very time consuming
advangtages of secondary
its cheaper
it does not involve lots of time
diasadvantages of secondary
the data may not be exactly what the business is looking for
the data may be bias
qualatative data
qualatative research involves the collection of data about attitudes beliefs and intentions. focus groups and intevews are the most common method to collect
quantative data
involves the collection of data that can be measured in practise this usually menas the collection of statistical data such a sales figuers and matket shares. surveys and government publucations are the most common ways of collecting
advantages of qualatative
data analysis is easy
its cheap
has a personal approach
disadvantage of qualatative
data can be difficult to interperet
it is difficult to make comparisions
not time efficient
advantages of quantatative
less time intensive
increased reliability and validity
data is easy to analyse and compare
disadvantages of quatatative
it is more expensive
there may be missig data
need a larger markey sample
limitatios of market research
market research is not totally dpendable due to
1. human behaviour- while the responses of customers my be honest and truthful at the time they may chnage their mind
2. sampling and bias- when carrying out market research it is usual to base the dta on not the whole proportion making it unreliable
3. may be out of date or not relevant to the business
the use of ICT to support research
company websites- can be used to provid acess to online surveys. tehy are cheap to administer and can be made available to respondants 24/7 also busineses review their websites and can carry out research by gathering data from rivals websites
social networking- social media can provide fast, cost efffective ans in depth tool for gainng insights to a firms customers, barnd image and other important aspects
methods of segmenting
geographic segmentation- different customer groups are likely to have different needs depending on where they live
demographic segmentation- dividing the market based on age, gender, income, social class, ethnicity and religion
phycographic segmentation- market segmentation based on peoples attitudes opinions and lifestyles
