1.1.2 Market Research Flashcards
(29 cards)
Definition of Market Orientation
Marketing that focuses on the needs of consumers to design a product
3 Key Points of Market Orientation
-Consumers at centre of marketing decisions
-Products will be developed to consumer needs
-Businesses will believe they will benefit from high demand, increased profit and better reputation
3 Tools for Market Orientation
-Market Research
-Market Testing
-Market Focus
4 Advantages of Market Orientation
-Reputation
-Image
-Brand
-Differentiation
3 Disadvantages of Market Orientation
-Market / Needs constantly changing
-Costs
-Unpredictable
Definition of Product Orientation
Marketing that focuses on characteristics of the product rather than consumer needs
3 Key Points of Product Orientation
-Create product first then find market
-Belief product is superior (will sell itself)
-Could be too product orientated thus creating failure to meet any consumer wants
3 Tools for Product Orientation
-Product Research
-Product Testing
-Product Focus
3 Advantages of Product Orientation
-High Quality
-Innovation
-Economies of Scale
3 Disadvantages of Product Orientation
-Neglect wants/needs of consumer
-High Competition
-Riskier
Definition of Quantitative Data
Numerical data that can be counted or measured often presented as stats or percentages
Definition of Qualitative Data
Non-numerical data often containing opinions expressing insight
Definition of Market Research
The process of gathering and interpreting data about customers to help a business reduce risk and improve decisions
6 Advantages of Market Research
-Reduces risk
-Anticipate future wants and needs
-To understand customer behaviour
-To identify potential demand
-To identify competitors
-To identify how much consumers are willing to pay
4 Disadvantages of Market Research
-Cost to collect and utilise
-Time
-Relevance to business
-How up to date is the research going to stay
Definition of Primary Research
The process of gathering information directly from consumers in the target market
5 Examples of Primary Research
-Surveys
-Interviews
-Focus Group
-Test Marketing
-Observation
3 Advantages of Primary Research
-Relevant to business
-Can be in-depth
-Up to date
5 Disadvantages of Primary Research
-Sample size may be too small
-Bias
-May need 3rd party to analyse
-Time consuming
-Expensive
Definition of Secondary Research
The collection, compilation and analysis of data that already exists
3 Examples of Secondary Research
-Market Reports
-Competitor Analysis
-Government Publications
3 Advantages of Secondary Research
-Already exists
-Cheaper to collect, often free
-Suitable for small business
3 Disadvantages of Secondary Research
-May lack relevance
-Information may be out of date
-Expensive to purchase market specific reports
How does a company website support market research
Allows businesses to collect primary data by analysing spending habits, searches and reviews
