Market Research/positioning Flashcards
The marketing map
Illustrates the range of posittions that a product can take in a market based on two dimensions that are important customets
Product differentiaton
Arises when customes perceive a distinct difference between your product and alternatives provided y competitors
Product orientation
This means the business fcuses on the product process and the product itself. Most of its efforts into developing and making products which it believes consumers want and which it will sell well.
Market orientation
A business which continually identifies, review and analyses consumer needs. It is led by the market
Adv of being market orientated rather than product orientated
- it can respond more quickly to changs in the market because of its use of markt info
- it will be in a stronger position to meet the challenge of new comp entering the maret
- more anticpating to market change
- more confidence that launch of a new product will be a success
Market research definition?
This involves the gathering, collecting, presenting and analysing information about the market and consumers in it
What are the two types of market research?
- primary
- secondary
What is primary research?
-data which did not exist before (also known as field research )
What is secondary research?
Information which someone else collects and shares with others
What are the methods of primary research?
- questionnaires
- postal surveys
- telephone interviews
- personal interviews
- focus groups or consumer panels
- observation
- test marketing
What is test marketing
-selling a new product in a restricted area before a national launch
What is a questionnaire?
A list of written questions
What are methods of obtaining secondary research?
- internal
- external
- monetary fund
- gov publications
- commercial publications
What is internal research?
-within the business eg reports, data bases, company accounts etc
What is external research?
Data available from sources outside the business, Government , regulated bodies, outsourcing etc
What is qualitative research?
The collection of data about attitudes, beliefs and intentions
- open ended responses
- more detailed and specific
- more reliable
What is quantitative research?
The collection of data that can be quantified
- numerical data
- sales figures
- demographics
What is market positioning?
This is the customers perceptions about the products that a business sells
What is observation?
This is where the market researches observe the behaviour of the customers, however there is no feedback to explain behaviours
Explain what Focus groups and panels are
- very detailed info can be collected here
- number of customers are invited to attend a discussion led by market researches
- group must be representative
Explain human behaviour as a limitation of market research?
- society tends to change their opinions often so an honest and truthful answer now could change in the future due to different factors.
The act of consuming goods from consumes is relatively unpredictable
Explain sample and bias as a limitation of market research?
- the group must be representing of the population
- however even this could be different if diff members of the population were questioned
- the greater the sampling discrepancy, the less relatable the sample
-questionnaires need to be carefully asked so that the researcher isn’t asking closed questions or leading customer to specific answers causing bias and unreliable results
Use of ICT to support market research
- company websites
- social media
- database
Benefits of market segmentation
- business can produce different products for different market segments and increase revenue
- Customers will be more loyal to a business that meets their needs
- business can avoid wasting promotional resources
List some approaches a business may use to to position its products
- the benefits offered by the products
- the usp
- the attributes of the product
- the origin
- the classification
What is competitive advantage
-a set of unique features of a company and its products that are perceived by customers as significant and superior to competition
List the ways a competitive advantage
- product design
- product quality
- promotion
- delivery time
- market segmentation
- economies of scale
- customer service
- flexibility
- ethical stance
Economies of scales as a competitive advantage
- firms that can produce efficiently at low cost can afford to charge lower prices and therefore gain a competitive advantage by being a cost leader in their market.
- larger firms are likely to be exploited to this adv
