theme 1 booklet 2
product orientation
when a business focuses on the production process and the product itself and puts effort into products which believes consumers will want to buy
needed a lot of research
market orientation
focuses on customer needs and listens to consumers wishes
basing decisions from customer feedback
contains a lot of market research
usually takes place when there is little consumer knowledge so will base decisions of what they already know of that product e.g. dyson
when there is low income of consumers they will want to buy what they can afford
identifies the needs and wants if their customers and delivers products to their needs
they make products to meet customer demand
primary market research
research that the person conducts itself going directly to that source e.g survey or questionnaires, interviews observations
this data will be specific to the needs of the business and benefit the business
secondary research
a collection of information that already exists that has been collected for another purpose but that business can use
also known as desk research like government sources, magazines, tv and radio, social media
includes using internal and external data
internal data may be collected from exisitng business documents e.g. sales figures, annual report and accounts , loyalty cards to help frims make decsions
external data is outside of the business collected by other organisations e..g from competitiors, internet
ADVANTAGES- up to date/relevant to business needs so information is useful
DISADVANTAGE-time consuming, expensive, could be inaccurate information because could be asking friends making them give a positive answer , didn't ask a wide range of people
ADVANTAGE- easy and cheap to collect makes it useful for smaller business
already available so quick decisions can be made
DISADVANTAGE- might be dated informational and misleading
may not be relevant
QUANTITIVE RESEARCH
statistical data such as sales figures and surveys that can be measured
QUALITATIVE RESEARCH
collecting data about attitudes and beliefs it is detailed information on why they do and don't buy what they want
limitations of market research
market research depends on the response of customers who participate e.g. answer surveys
human response could be different on a different day and therefore it is unpredictable depending on their mood
a sample size is the number of people who are interviewed during the research it is impossible to ask the whole population
bias- when research findings cannot be trusted because of the way the research has been carried out for example, questions may be phrased in a certain way
USE OF ICT TO SUPPORT MARKET RESEARCH
WEBSITES- can generate a large amount of analytical data which is useful for marketing decision making. e.g. most popular days that customers buy products this helps a business decide when to best promote products to maximise their profits.
SOCIAL MEDIA- creates data about followers and polls can be used as quick as primary research techniques to gain customer reaction to new product
DATABASE- held by the company on their own, customers can be used to send out emails with surveys. databases might be from a loyalty card.
market segmentation
field research
markets cna be divided into segments, each segment is made up of consumers that have similar characteristics
if a business can identify their product or service and who it appeals to, they can then target advertising and promotions
GEOGRAPHICAL- region, unban/rural
DEMOGRAPHIC- age, income, social class, religion
PSYCHOLOGICAL- attitudes, opinions lifestyle,
BEHAVIOURAL- loyalty, usage rate
BENEFITS- way to differentiate product from competition and enable them to charge higher prices
less wasteful of resources than trying to sell product to everyone - product can be adapted to meet needs
less expensive to develop product that attempt to meet more distinct needs
DRAWBACKS- not everyone in each segment behaves the same way.
all people the same age don't necessarily like similar products
can be difficult to reach chosen segment with marketing e.g. what media use to attract primary teachers