Market & Market Research Flashcards
(18 cards)
What is a Dynamic Market?
A market which is subject to continual and rapid change.
A new business has to understand how dynamic the market is that it is entering. This can be very different depending on the type of business.
The shifting factors that shift these markets are SUPPLY and DEMAND
What is Product and Market Orientation?
Market Orientation - Wants and needs of the customer. This identifies customer needs to satisfy them - designs products accordingly
Product Orientation - The business develops products based on what it’s good at making or doing, rather than what the customer wants. This focuses on the function of a product or service
What is Primary and Secondary Research?
Primary Research - Gathering data that has not yet been collected (interviews, surveys, observations)
Secondary Research - Compiling existing data published by others
What are some Advantages and Disadvantages of Primary Research?
A - Tailored to specific needs, it’s directly relevant to your research goals, allowing to focus on particular questions
Up to Data Data and Information - useful in fast changing markets
Engaging Directly with Participants can allow for deep insights into consumer behaviour , opinions and motivations
D - Expensive - Requires a specific Budget when it comes to large samples or detailed studies
Time Consuming - Can take a while to plan, collect and analyse data
Question could be bias or untrue either because of interpretation or prize at the end
What are some Advantages and Disadvantages of Secondary Research?
A: Quick Access - Data is available immediately from various sources, saving time
Cost Effective - Free or much cheaper than P (data alr exists)
Covers a more borad scope with a wider range of topics which can gain background knowledge
D: May be Outdated - especially in fast moving fields, could be dangerous
Lack of Specificity - Question may not be directly specific to your question or context
Unable to know how the data was collected, therefore reliability and credibility of sources can vary
Similar to last point, no control against quality or potential bias
What is Quantitive and Qualtitive Research?
Quantitive - Research that focuses on numerical data and statistical analysis to identify patterns, relationships, or trends.
Qualitative - Research that explores opinions, thoughts, motivations, and experiences through non-numerical data.
What are some approaches a Bsuiness would use to position their products?
The USP - What sets it apart form other competitors
Atributes of Product
Origin of Product - like where they were manufactured
Benefits Offered by Product
What is Market Mapping?
A technique used to identify where there are gaps in the market - such as where there are customer needs that are not being met
Market Research is important to confirm wether there is actually ny demand for a possible gap in the market or not
The map illustrates the range of positions that a product can take in a market base on two dimension
What are limitations of Market Markets?
They are two dimensional, meaning meaning only two product attributes can be analysed on the same map
What are examples of dimensions seen on a market map?
High price vs low price
Basic Quality vs high
Low volume v high volume
Necessity vs luxury
How can a business develop a competitive advantage in the market?
Product Design - differentiate its product from those of its rivals.
Product Quality
Promotion
Customer Service
Ethical Stance
Economies of Scale - firms can produce at a lower cost and can therefore afford to charge a lower price and therefore being a cost leader in their market. This is mainly for larger firms
What could product differentation include:
Supplying goods and services that have different features or physical attributes.
Flexible Pricing - If a business can show clear physical difference between their products and competitors, they can charge a higher price. Consumers will then attach a higher value to the product due to high price. They are associated with luxury (like perfume brands).
It gains recognition In the market place
If PD is done right, they may be able to serve more than one market segment in the same industry
Overcome Competition
How can a business add value?
Customer Service —- Could be the speed of response to cusotmers
Luxury packaging
Rewarding customers for repeated purchases
Customising products like embedding a customers logo in product or using customised wrapping
What is Product Differentiation?
An attempt by a business to distinguish it’s products by those of competitors
What is Reposition?
Changing the view that consumers have about a product by altering some of it’s characteristics
What is Demand?
The amount of a product that consumers are willing and able to purchase t any given prixe.
What does a demand curve show?
The quantity of a good or service that will be demanded at any given price.
It slopes downwards from left to right
What are factors that lead to a change in demand?
PIRATES
P - Price of substitutes - if the price of a substitute of a product falls, the quantity demanded of the substitute rises - as a result the demand for the product will fall.
I - Changes in consumer incomes - if consumer income rises, demand for goods will rise
Demand falls for inferior goods when income rises (transport or supermarkets) - consumers are willing to spend more on costly substitutes.
Fashions, tastes and preferences
A - Advertising and Branding
Demographics - Age, gender, geographical distribution
E - Expectations about future prices or products
E - External Shocks (factors beyond control of business) - Competition, government (raising taxes, new laws), Economic climate (such as a recession, demand for non essential goods will fall), social and environmental factors
S - Seasonality
