market research 2

Question 1

product orientation

Answer 1

→ product is developed with quality/functions in mind
→ not necessarily in line with customer requirements
→ focus on what business is good at but it may not sell well
- eos

Question 2

market orientation

Answer 2

→ the consumer is the most important factor
→ sensitivity for customer requirements
→ helps businesses respond to customer needs
→ BUT needs can be fast-changing
→ could be costly or potentially weaken the brand

Question 3

benefits of market research

Answer 3

1. reduces risk and cost of making poor decisions
2. to become market-orientated
3. to react to and prepare for changes in the market
4. dimension of market e.g size, trends, growth
5. competitor strategies e.g. market share, positioning, USPS

Question 4

limitations of market research

Answer 4

1. often biased
2. not reliable
3. time-consuming
4. cost-effective

Question 5

define market segmentation and the characteristics

Answer 5

• a group of individuals in a market where consumers share a characteristic or need
• e.g. demographic, geographic, behavioural, psychological, race, income
• use it to develop a product/target a specific group through marketing

Question 6

benefits of market segmentation

Answer 6

• helps make the marketing mix more effective
• helps with new product development
• allows businesses to grow shares in a fast-growing segment
• focuses resources on parts of the market where they’ll succeed

Question 7

drawbacks of market segmentation

Answer 7

• can’t always reach customers in the segment
• markets are increasingly dynamics so are segments