1.1.2 market research Flashcards

1
Q

Product orientation

A

Business develops products based on what it is good at doing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Market orientation

A

Business responds to customer needs and wants - designs products accordingly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Primary market research

A

Involves the collection of first hand data by the business and is gathered for a specific purpose snd to match the exact needs for the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Benefits of primary market research

A

~ directly focused on research objectives

~ not publicly available and can therefore be a source of competitive advantage

~ provides more detailed insights, especially into customers views

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Drawbacks of primary market research

A

~ time-consuming and costly to obtain

~ risk of potential bias

~ sampling may not be representative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Methods of primary research

A

~ surveys

~ observations

~ test marketing

~ interviews

~ focus groups and consumer panels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Secondary market research

A

Involves the collection of second-hand data/data that already exists

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Benefits of secondary market research

A

~ often free and easy to obtain

~ good source of overall market insights

~ quick to access and easy to use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Drawbacks of secondary market research

A

~ not specific to the needs of the business

~ often out of date

~ available to other businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Methods of secondary research

A

~ market research reports such as MINTEL

~ online sources such as Statista

~ government data from the Office of National Statistics

~ trade publications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Quantitative market research

A

Concerned with and based on data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Benefits of quantitative market research

A

~ data is relatively easy to analyse

~ numerical data can provide insights into trends

~ can be compared with data from other sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Drawbacks of quantitative market research

A

~ focuses on data as opposed to why something happened and therefore doesn’t explain the reasoning behind trends

~ may lack reliability if sample size and method is not valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Qualitative market research

A

Based on opinions, attitudes , beliefs and intentions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Benefits of qualitative market research

A

~ essential for important new product development and launches

~ provides crucial insights into consumer behaviour

~ an effective way for testing elements of marketing mix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Drawbacks of qualitative market research

A

~ expensive to collect and analyse often requiring specialist research skills

~ based around opinions and there is always a risk that the sample is not representative

17
Q

Sampling

A

Involves the gathering of data from a selection of respondents, the results of which should be representative of the population as a whole

18
Q

Benefits of sampling

A

~ provide useful research insights if it is representative

~ can reduce risk and costs before a decision

~ flexible + relatively quick

19
Q

Drawbacks of sampling

A

~ incorrect conclusions and decisions can happen if unrepresentative of the population

~ risk of interviewer, question and respondent bias

~ less useful in dynamic markets

20
Q

Use of ICT to support market research

A

~ websites

~ social networking

~ databases

21
Q

Market segment

A

Involves dividing a market into different groups that reflect different customer needs snd wants

22
Q

Traditional ways of segmenting

A

~ age

~ gender

~ income

~ hobbies + interests

~ location

~ culture + ethnic origin

~ occupation

~ lifestyle

23
Q

Benefits of market segmentation

A

~ focuses resources on parts of a market where the business can succeed

~ allows a business to grow share in markets

~ helps with new product development

~ helps make the marketing mix more efficient

24
Q

Drawbacks of market segmentation

A

~ data about each market segment is not always available, up to date or reliable

~ just because you can identify a segment doesn’t mean you can reach the customers in it

~ markets are increasingly dynamic and fast-changing + so are the segments