1.1.2 Market Research

What is product orientation?

A business focus on developing and improving products rather than customer wants.

What do product-oriented businesses believe?

Customers will buy products because of quality or innovation.

What type of markets are product-oriented businesses common in?

Technology and innovation markets.

Advantage of product orientation?

Encourages innovation and product development.

Disadvantage of product orientation?

Customer needs may be ignored.

What is market orientation?

A business focus on customer wants and market research.

What do market-oriented businesses do before launching products?

Conduct market research.

Advantage of market orientation?

Products better meet customer needs.

Disadvantage of market orientation?

Market research can be expensive and time-consuming.

Why are dynamic markets often market-oriented?

Customer needs change quickly.

Difference between product and market orientation?

Product orientation focuses on the product; market orientation focuses on customers.

What is market research?

Collecting and analysing information about customers and markets.

What is primary market research?

New data collected directly for a specific purpose.

Examples of primary research?

Surveys interviews focus groups observations

Advantages of primary research?

Specific up-to-date relevant.

Disadvantages of primary research?

Expensive and time-consuming.

What is secondary market research?

Existing data collected by others.

Examples of secondary research?

Government reports websites company accounts

Advantages of secondary research?

Cheap quick widely available.

Disadvantages of secondary research?

May be outdated or irrelevant.

Difference between qualitative and quantitative research?

Qualitative = opinions and reasons; quantitative = numerical data.

Give examples of qualitative research.

Focus groups and interviews.

Give examples of quantitative research.

Surveys and sales data.

What is sample size?

Number of people included in research.

Why is sample size important?

Larger samples are often more representative.

Problem with small sample sizes?

Results may not represent the market

What is bias in market research?

Results becoming distorted or unfair.

Causes of bias in market research?

Leading questions poor sampling researcher influence.

What is a representative sample?

A sample reflecting the characteristics of the target market.

Why may market research be unreliable?

Customers may give inaccurate answers.

Why can market research become outdated?

Markets change quickly.

Limitation of primary research?

Cost and time.

Limitation of secondary research?

Lack of relevance.

What does ICT stand for?

Information and Communication Technology.

How can ICT support market research?

Collecting storing and analysing data.

Examples of ICT used in market research?

• Online surveys

• social media analytics

Advantages of ICT in market research?

Faster collection lower costs larger samples.

Why are online surveys useful?

They reach many people quickly.

How does social media help market research?

Businesses track customer behaviour and trends.

Limitation of ICT market research?

Data may be inaccurate or biased.

Define market segmentation.

Dividing customers into groups with similar characteristics.

Why do businesses segment markets?

To target customers more effectively.

What is demographic segmentation?

Segmentation by age, gender, income , occupation etc.

What is geographic segmentation?

Segmentation by location.

What is behavioural segmentation?

Segmentation by buying behaviour.

Examples of behavioural segmentation?

Brand loyalty usage rate benefits sought.

What is psychographic segmentation?

Segmentation by lifestyle values and personality.

Advantages of market segmentation?

• Better targeting

• improved marketing

• higher customer satisfaction.

Disadvantages of market segmentation?

• Costly research

• increased complexity.

How can segmentation improve sales?

Products better meet customer needs.