1.1.2 market research and 1.1.3 market posisioning

Market orientation?

where businesses design and develop products based on understanding and meeting customer needs and preferences

Product orientation

designing and developing products based on the business's capabilities and expertise rather than specific customer needs or market demands

primary research?

collecting data first-hand for a specific purpose (sometimes called field research). 

secondary research?

using data that already exists and was collected for a different purpose (sometimes called desk research). 

 

sampling?

gathering of data from a subset of respondents, the results of which should be representative of the population (e.g. target market) as a whole

Quantitative research?

produces numerical statistics. It usually involves asking closed questions, e.g. via a survey.

Qualitative research

involves collecting opinions. It usually involves asking open questions, e.g. in a focus group. 

pros of quantitive

easier to gather large sample size

easily compared/analysed

cons of quantitative

needs good and easy questions

lacks insight into consumer feelings

pros of qaulilitive?

in depth insights

adaptable

cons of qaulilitive?

smaller sample size

time consuming

market segment?

the division of a market into customer groups, each of which has similar characteristics, preferences or behaviours

examples of segments?

Common groupings include age, gender, income, hobbies/interests, location, ethnic origin/culture, occupation and lifestyle.  

Market positioning

efforts to influence customer perception of a brand or product relative to the perception of competing brands or products. 

market oreintation?

where businesses design and develop products based on understanding and meeting customer needs and preferences.  

product orientation?

designing and developing products based on the business's capabilities and expertise rather than specific customer needs or market demands. 

 

pros of market orientation?

less risk-products more likely to meet consumer needs

cons of market orientation?

high costs

market research needed

pros of product orientation?

More likely to lead to the development of highly innovative new products, that give the business a competitive edge 

cons of product orientation?

high risk of failure