1.52 Market Research Flashcards
(17 cards)
Explain how market research is carried out
-Personal interviews with structured and unstructured questions on a range of products
-Observe customers using the product and report any issues along with customer feedback on their individual experience
-A facilitator would use focus groups to discuss or debate key issues of a new or existing product
What is a need
Needs are associated with things we cannot live without eg clothes, food, shelter
-marketing plays no role in creating needs
What is a demand
Things we would like and arise from needs, eg mercedes car
-wants turn into needs when customers have the ability to buy it
-marketers play a significant role in creating demands
How and why new product arise
-government legislation
-new materials, eg graphene
-product development- more user friendly
-gap in market
-change in consumer demands
Why is it important to have innovation in the market
The role of innovation is to provide competition between companies in the same industry which will ultimately benefit the company
What is market pull
An approach which attempts to provide products that the market demands, eg a demand from sonsumers for new and improved products
-competing product is launched by another manufacturer
-a manufacturer wants to increase their share of the market
What are the factors associated with market pull
-responding to changing lifestyles, eg chill cook meals
-changing consumer attitudes change design priorities
-new products are closely mapped against customer attributes and profiles
-people like new products
-new products comes from a need identified in the market
What is technology push
-An approach which attempts to interest the market in new products based on technology solutions
What are the factors associated with technology push
-with the introduction, products that were thought to be impossible to create are now possible
-new technologies are sometimes driven by environmental pressures
-new technologies are used as a way to achieve an advantage in the market as they may be perceived as hi-tech and attractive to consumers.
What is incremental innovation
Refer to stepped developments, changes or improvements or additional features in products
What are the characteristics of incremental innovation
-products use existing technology
-less costly than radical products
-require low levels or marketing
eg IPHONE- series of updates, part changes, additional features as new models have been released
What is a radical innovation and what are the factors
-Refer to significant leap forward in the use of materials or processes or systems within a product
-produced from new technologies
-high levels of uncertainty of products success
-costly given the new technologies
-requires high levels of marketing
What is market penetration
The process of going to the market with a product in an existing market in which current or similar products already exist and taking market share from other competing strategies
What are characteristics with market penetration
-involves increasing sales to existing customers
-finding new customers for existing products
-taking customers from competitors
What is market development and what are the characteristics
The process of selling to a new target market
-moving into completely new market
-considered to be risky- no prior knowledge of the new market
-finding new markets for existing products
What is product development and what are the characteristics
The most expensive approach to market development whereby you develop a product for a new target market
-changing/developing existing products further
-developing new products from the basis of the old classic market
-product development- used to differentiate products from competitors
How does diversification improve business opportunities
-offers an extensive range of product options to generate increased sales
-add more markets to an existing business
-concentrates on product and market growth to enhance company sales and market share
