THEME 1.1.2

Question 1

What is PRODUCT ORIENTAION?

Answer 1

Product orientation is an inward looking approach to new product development where the key focus is on what products can be made and the production process

Informed by scientific research+ tech developments

The business will concentrate on producing high quality products and then later look to create a market for them

Question 2

What is Market orientation?

Answer 2

Market orientation is an outward looking approach to new product development where the key focus is on what products the consumer wants

• informed by market research
• The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs

Question 3

What is MARKET RESEARCH?

Answer 3

Market research is the collection and analysis of data and information to inform a business about its market.

Data collected and analysed is used to:
identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour

Question 4

what is primary data?

Answer 4

Primary market research (field research) involves the collection of first hand data that did not exist before and therefore it is original data

Question 5

examples of primary data?

Answer 5

• In depth interviews
• Focus groups
• Observations
• Surveys and questionnaires (could be by telephone, by post, face to face or online)

Question 6

What is SECONDARY DATA?

Answer 6

Secondary market research is research that has already been undertaken/ data collected by another organisation and therefore already exists.

Question 7

examples of secondary data?

Answer 7

National and Local Government e.g. Office for National Statistics
Market Research organisations e.g. MORI, MINTEL
Professional bodies e.g. ACCA
International bodies e.g. EU, OECD
Academic organisations e.g. universities
Newspapers and magazines
The Internet

Question 8

What is qualitative data?

Answer 8

Qualitative research is the gathering of non-statistical information that gives a company indepth insight into the reasons for human behaviour.

Question 9

what is quantitative data?

Answer 9

Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons

Question 10

what are the limitations of data research?

Answer 10

• Past data and trends may not be a fair indication of the future
• Accuracy of research findings
• Dependent upon ability to correctly analyse findings
• Financial and opportunity costs
• Bias

Question 11

what is a sample?

Answer 11

A sample is a group of subjects that has been chosen from a larger group for investigation

Question 12

what affects the value of a sample?

Answer 12

The value of sampling will depend upon:
The sample technique used

How the sample was carried out

The size of the sample

Question 13

what affects the size of a sample?

Answer 13

The size of a sample will depend on;
-The budget available

• The importance of accuracy
• Degree of confidence in results

Question 14

What is random sampling?

Answer 14

Random sampling is where a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected

Question 15

What is random sampling?

Answer 15

Random sampling is where a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected

Question 16

what is quota sampling?

Answer 16

this is where the population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup

e.g. within a sub group of women 60% may be aged 20-40, 20% 41-60 and 20% 61+, the sample should represent this

Question 17

what is stratified sampling?

Answer 17

The population is first segmented into subgroups before respondents are randomly selected from within that subgroup
e.g. within a subgroup of 16-18 year olds any member of the population has an equal chance of being selected.

Question 18

how does information communication technology (ICT) support market research?

Answer 18

helps collect data through
Websites
 Invite feedback through 
  blogs
 Analytics monitor number, 
 frequency and timings of 
 visitors
  Online polls and surveys
 Cookies
Social networking
Reviews
Blogs
Likes/dislikes
Viral marketing
Customer feedback

Question 19

What is market segmentation?

Answer 19

Market segmentation is when the market is split into subgroups of consumers wit similar characteristics.

helps to identify different types of consumers and different wants & needs

Question 20

What are the 4 segmentation methods?

Answer 20

demographic
geographic
income
behavioural

Question 21

what is demographic segmentation?

Answer 21

Demographic segmentation divides the market into smaller categories based on demographic factors, such as age
gender
race
education
religion
family size

Question 22

What is geographic segementation?

Answer 22

Geographic segmentation defines market categories based on where people live e.g. regions, cities or neighbourhoods

People in different geographical areas display different characteristics and needs e.g.

Question 23

what is income segmentation?

Answer 23

income segmentation is identifying subgroups of the market based on their levels of income and profession

Question 24

socio economic groupings

Answer 24

A – Higher managerial such as chief executives and directors
B – Intermediate managerial such as solicitors, accountants and doctors
C1 – Supervisory, clerical or junior professional such as teachers and junior managers
C2 – Skilled manual such as plumbers, electricians and carpenters
D – Semi and unskilled workers such as refuse collectors and window cleaners
E - Pensioners, casual workers, students and

Question 25

What is behavioural segmentation?

Answer 25

behavioural segmentation characterises subgroups based on the behavioural patterns of the consumer rather than their characteristics.

Question 26

behavioural segmentation characteristics includes?

Answer 26

Reasons for making purchases e.g. needs, emotional, rewards
Frequency of purchase e.g. heavy user or light user
Time of purchase e.g. seasonal, weekly, late at night
Brand loyalty
Method of purchase e.g. online
Triggers e.g. response to digital marketing

Question 27

what are the benefits of market segmentation

Answer 27

Advertising can be targeted at specific market segments so that advertising spend is more effective
The most profitable and least profitable customers can be identified
Least profitable markets can be avoided
It becomes easier to identify new products
It helps the firm improve existing products and customer service