Market Research Flashcards
Define PRODUCT ORIENTATION
Product orientation is an inward facing approach where the main focus is on the product and how to make it better. A lot of scientific research is involved in the production process to ensure high quality. A market is built around the product once it has been finished.
Define MARKET ORIENTATION
Market orientation is an outward facing approach where the main focus is on the market and the needs of consumers within it. There are high levels of market research that is used to identify specific consumer wants and needs and a product is then made to meet them.
Define MARKET RESEARCH
Market research is the collection, analysis and presentation of information about a business’ market. The information could include size of the market, trends within it, consumer needs, different market segments and competitor strategies.
Define PRIMARY MARKET RESEARCH
Primary market research is research that is collected first hand by the business itself for their specific aims and objectives.
Define SECONDARY MARKET RESEARCH
Secondary market research is research that already exists for a different purpose that can be adapted for use by the business.
Define SAMPLING
Sampling involves the collecting of data from a small group who are seen to be representative of the whole population.
What are the benefits of primary market research?
- Focused and relevant to the business’ objectives
- Can be kept private from competitors
- Up to date
- More detail insights into consumer behaviour can be gained
What are the benefits of secondary market research?
- Can be obtained quickly, freely and easily
- There is lots of it so trends can be identified
What are the drawbacks of primary market research?
- Expensive and time consuming to collect
- Risk of survey bias is high so any information collected may be inaccurate and not representative
What are the drawbacks of secondary market research?
- Not necessarily focused on the business’ objectives
- There is a risk of it being out of date
- Specialist reports are expensive,
Define QUALITATIVE DATA
Qualitative data is data that is comprised of ideas, attitudes and opinions of consumers. It is very detailed and aims to understand how or why consumers respond to products or services.
Methods: focus groups, interviews, surveys and questionnaires.
Define QUANTITATIVE DATA
Quantitative data is data that can be numerically categorised and analysed. Aims to achieve clear, concise answers that can be compared. Typically based on large samples so it is more statistically valid.
Methods: surveys (telephone, postal, face-to-face)
What are the benefits of qualitative data?
- Gives detailed insights into consumer opinions and how they think
- By gaining this information, promotion can be effectively targeted and the business’ brand can be built.
- Ideas that the business may not have thought of can be gained.
What are the drawbacks of qualitative data?
- Difficult to compare or categorise
- Expensive to collect
- Sample size is often small and therefore the risk of bias is high.
What are the benefits of quantitative data?
- Can be easily compared and contrasted
- Trends can easily be identified if the data is collected long term.
- Easy to extract meaning from the results.
What are the drawbacks of quantitative data?
- Only identifies what consumers do, not why the do it.
- Only reliable and valid if the sample size is large enough.
Define BIAS
Bias is a preference to gold a viewpoint that does not take into account the alternatives within a population.
Define CONSUMER BEHAVIOUR
Consumer behaviour is the reasons behind the actions of people, influenced by their opinions and preferences, when making purchasing decisions.
Define CONSUMER INCOMES
Consumer income is the level of income left from a consumer’s pay after taxes have been deducted and living expenses paid.
Define DATABASES
Databases are electronic storage systems that enables the keeping and sorting of information more easily.
