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Market Reasearch 1.1.2 - Coggle Diagram
Market Reasearch 1.1.2
ORIENTATION
Product orientation
A business that is inward-looking. When it only looks at the product or the production process when deciding what to make next. To sell products and services that the business wants to produce.
Market orientation :
The consumer is the most important factor when providing products for the market, the business has a sensitivity to customer requirements. They track your purchases and recommend you more
RESEARCHING THE MARKET
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Benefits of researching
- Business decision making, market reasearch reduces risk and cost of making poor decision
- To develop a marketing plan based on gathered data about the market
- To help the business react to and prepare for changes in the market
- To help the business become market oriented
PRIMARY RESEARCH
Collecting data first hand. So, new data is gathered for the benefit of the business. The data will be specific to the needs of the business
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TYPES OF RESEARCH
Qualitative
Gathers and explores feelings and thoughts about a product from consumers. Can help a business to identify buyers moods, the decisions behind a purchase and other invaluable data
Quantitative
Involves gathering data and measuring responses. Data that is displayed in charts, graphs, stats and %. Questionnaires written to gather numerical data.
Quantitative research asks questions to a large sample to provide valid useful data for the business
SAMPLING & BIAS
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Sample size is the number of people who are interviewed during the research.
The sample size needs to be large enough that the data has statistical validity and can be useful to the business for decision making.
Bias is when research findings cannot be trusted because of the way the research has been carried out, this can be though: Interviewer bias, biased questions like, you really like shopping at ... dont you?
USE OF ICT FOR RESEARCH
websites
Pop-ups ask customers about products they have bought or may buy. Also can be used to gather emails so customers can be surveyed. Some sites have lots of quantitative data about the industry.
Social networks
Can be used to support marketing reasearch by searching for trending #s + emerging trends. It can also search a business' name to find quantitative info about customer perceptions.
Business databases
The info can be used to target customers likely to buy at the store. They store customer info like credit scores
SEGMENTATION
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Location
A business may decide to sell its product in only 1 country, 1 region or a smaller area a business may target its product at rural rather than urban areas. A business may target its products depending if the market area is hot or cold
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Lifestyle
Customers can be grouped according to the way they lead their lives and the attitudes they share. This may include hobbies + interests.
Income
Establishing a groups disposable income is important so that products can be targeted to the relevant income. The population can be divided into low, middle and high income
Age
Each age group will have different needs and wants in terms of products and services and businesses can develop a target marketing strategy to appeal to that age group
Gender
Many products are aimed at either men/ women. A business may adopt products to ensure they can be marketed effecively