THEME 1.1.2 Flashcards
(27 cards)
What is PRODUCT ORIENTAION?
Product orientation is an inward looking approach to new product development where the key focus is on what products can be made and the production process
Informed by scientific research+ tech developments
The business will concentrate on producing high quality products and then later look to create a market for them
What is Market orientation?
Market orientation is an outward looking approach to new product development where the key focus is on what products the consumer wants
- informed by market research
- The business will concentrate on understanding the needs of the consumer and then adapting or producing products to meet these needs
What is MARKET RESEARCH?
Market research is the collection and analysis of data and information to inform a business about its market.
Data collected and analysed is used to:
identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour
what is primary data?
Primary market research (field research) involves the collection of first hand data that did not exist before and therefore it is original data
examples of primary data?
- In depth interviews
- Focus groups
- Observations
- Surveys and questionnaires (could be by telephone, by post, face to face or online)
What is SECONDARY DATA?
Secondary market research is research that has already been undertaken/ data collected by another organisation and therefore already exists.
examples of secondary data?
National and Local Government e.g. Office for National Statistics
Market Research organisations e.g. MORI, MINTEL
Professional bodies e.g. ACCA
International bodies e.g. EU, OECD
Academic organisations e.g. universities
Newspapers and magazines
The Internet
What is qualitative data?
Qualitative research is the gathering of non-statistical information that gives a company indepth insight into the reasons for human behaviour.
what is quantitative data?
Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons
what are the limitations of data research?
- Past data and trends may not be a fair indication of the future
- Accuracy of research findings
- Dependent upon ability to correctly analyse findings
- Financial and opportunity costs
- Bias
what is a sample?
A sample is a group of subjects that has been chosen from a larger group for investigation
what affects the value of a sample?
The value of sampling will depend upon:
The sample technique used
How the sample was carried out
The size of the sample
what affects the size of a sample?
The size of a sample will depend on;
-The budget available
- The importance of accuracy
- Degree of confidence in results
What is random sampling?
Random sampling is where a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected
What is random sampling?
Random sampling is where a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected
what is quota sampling?
this is where the population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup
e.g. within a sub group of women 60% may be aged 20-40, 20% 41-60 and 20% 61+, the sample should represent this
what is stratified sampling?
The population is first segmented into subgroups before respondents are randomly selected from within that subgroup
e.g. within a subgroup of 16-18 year olds any member of the population has an equal chance of being selected.
how does information communication technology (ICT) support market research?
helps collect data through Websites Invite feedback through blogs Analytics monitor number, frequency and timings of visitors Online polls and surveys Cookies Social networking Reviews Blogs Likes/dislikes Viral marketing Customer feedback
What is market segmentation?
Market segmentation is when the market is split into subgroups of consumers wit similar characteristics.
helps to identify different types of consumers and different wants & needs
What are the 4 segmentation methods?
demographic
geographic
income
behavioural
what is demographic segmentation?
Demographic segmentation divides the market into smaller categories based on demographic factors, such as age gender race education religion family size
What is geographic segementation?
Geographic segmentation defines market categories based on where people live e.g. regions, cities or neighbourhoods
People in different geographical areas display different characteristics and needs e.g.
what is income segmentation?
income segmentation is identifying subgroups of the market based on their levels of income and profession
socio economic groupings
A – Higher managerial such as chief executives and directors
B – Intermediate managerial such as solicitors, accountants and doctors
C1 – Supervisory, clerical or junior professional such as teachers and junior managers
C2 – Skilled manual such as plumbers, electricians and carpenters
D – Semi and unskilled workers such as refuse collectors and window cleaners
E - Pensioners, casual workers, students and
