1.1.2 Market research Flashcards
(31 cards)
Definition of product orientation
Business develops products based on what it is good at doing
Definition or market orientation
Business responds to customers needs and wants, designs product accordingly
Definition of market research
Gathering, presenting and analysing information about products, customers or markets
Why is market research useful
- Helps identify opportunities
- Informs strategy and decisions
- Identify trends
- Reducing risk
When might market research findings be limited
- Poor market research skills
- Small sample sizes
- Sampling bias
Definition of primary research
- Gathering information directly from your target market
- Research conducted specifically for the business
- eg. Surveys, interviews, questionnaires, focus groups, observations.
Advantages of primary research
- More specific
- Latest info on market
- Can assess psychology of customer
Disadvantages of primary research
- Expensive and time consuming
- Risk of bias
Definition of secondary research
- Finding and using pre-existing data
- Using data that was collected for a different reason than the current situation of a business
- eg internet, trade press, past research
Advantages of secondary research
- Cheap or free
- Good overview of market
- Usually based on actual figures from a large sample
Disadvantages of secondary research
- May be out of date
- Not tailored to the business needs
- Specific market reports may be expensive
Definition of qualitative research
- In depth research into motivations behind the attitudes and buying habits of customers
- non-numerical data
- eg depth interviews, focus groups
Advantages of qualitative research
- Useful, in depth insights
- Highlight potential issues
- Can test different elements of the marketing mix
Disadvantages of qualitative research
- Expensive and time consuming
- Difficult to analyse
- Opinion based with smaller samples
Definition of quantitive research
- Asking pre-set questions of a large enough sample to provide statistically valid data
- Numerical data
- eg surveys, questionnaires
Advantages of quantitive research
- Easy to analyse
- Numerical data provides insight into relevant trends
- Can be compared to other sources
Disadvantages of quantitive research.
- Doesn’t explain the why
- May lack reliability
Advantages of product orientation
Focus on creating and offering high-quality goods and services.
Disadvantages of product orientation
Lack of responsiveness to market trends and customer feedback,
Advantages of market orientation
Increased product quality, better product differentiation and improved consumer loyalty.
Disadvantages of market orientation
Customer wants change rapidly and market cannot keep up
Definition of sampling
Gathering of data from a sample of respondents, the results of which should be representative of the population
Definition of sampling
Gathering of data from a sample of respondents, the results of which should be representative of the population
Sample size
- Should be large enough to be representative of target market
- Difficult to generalise with a small sample size
