Market Research | Theme 1 Flashcards
What is Product Orientation?
Business develops products based on what it is good at doing. Likely not to do much market research.
What is Marketing Orientation?
Business responds to customer needs and wants and designs products accordingly. They need to do more market research.
What does market research involve?
Gathering, analysing and presenting information.
What is the purpose of market research?
Identify and anticipate customer needs and wants, quantify the likely demand, and provide insight into consumer behavior.
What are the two types of market research?
Primary and secondary information.
What is Primary Research?
Data collected first-hand for a specific research purpose.
What is Secondary Research?
Data that already exists and which has been collected for a different purpose.
What are examples of Primary Research?
Focus groups, interviews, surveys, mystery shoppers, product testing and product trial.
What are the benefits of Primary Research?
It’s directly focused on a business and its products, information is not publicly available, and businesses gain a detailed understanding of customer views.
What are the drawbacks of Primary Research?
Time-consuming and expensive, risk of survey bias, and a sample may not be representative.
What are sources of Secondary Research?
Commercial market research organisations, the government, and competitors.
What are the benefits of Quantitative Research?
Data is relatively easy to analyse, provides insights into relevant trends, and can be concerned with data from other sources.
What are the drawbacks of Quantitative Research?
Focuses on data rather than explaining why things happen, doesn’t explain the reasons behind numerical trends, and may lack reliability if sample size and method is not valid.
What are the benefits of Qualitative Research?
Essential for important new product development and launches.
What is Sampling in market research?
Gathers data from a sample of the population that should be representative of the target market population.
What are the benefits of Sampling?
Even a small sample size can provide useful insights, reduces risk and cost, and is flexible and relatively quick.
What are the drawbacks of Sampling?
Risk of unrepresentative samples, bias in research questions, and less useful in rapidly changing market segments.
What are limitations of market research?
Responses from consumers may not be honest, human behavior is unpredictable, and questionnaires can lead to biased responses.
How can ICT support Market Research?
Databases store data, company websites provide data, cookies track users, and comparison websites help find the cheapest options.
What are the benefits of using Social Media for Market Research?
Can reach millions, target specific groups, low cost, gain real-time feedback, and allows personal communication.
What is Market Segmentation?
Dividing the market into different parts that reflect different needs and wants.
What are the main categories of market segments?
Demographic, geographic, income, and behavioral segments.
What are the benefits of effective Market Segmentation?
Focuses resources, allows growth in markets, aids new product development, and makes marketing mix more effective.
What are potential drawbacks of Market Segmentation?
Imprecise science, dynamic markets, and inability to identify all segments.
