1.1.2 Market research - syllabus Candidates should be able to: distinguish between product and market orientation define primary and secondary market research and differentiate between qualitative and quantitative data analyse how research can identify and anticipate customer needs and wants; quantify likely demand and explain consumer behaviour describe the limitations of market research, sample size and bias explain how ICT can support market research define market segmentation

1.1.2 Product versus market orientation Product orientation is when a firm bases decisions on what they do best. It focuses on the production process and the product itself, contact with customers is at the final stage. E.g. Market orientation is when a firm bases decisions on what ______________ want.

1.1.2 What are the advantages of market orientation?

Must consult __________ continuously (market research) 1.1.2 What is the effect of having a market orientation approach on a business? Must consult __________ continuously (market research) Design the product according to consumer wishes Produce the quantity required and distribute according to buying habits and delivery requirements Set price at level consumer is prepared to pay These may be e___________

1.1.2 Why should a business choose product or market orientation? Nature of the product – Objectives – safety (_______ orientation) or market share (_________ orientation) Nature and size of the m_______ Degree of c____________

1.1.2 What is market research? Market research is the process of

What is secondary research? It can be internal or external information It is second hand information It is also called desk research

1.1.2 Sources of secondary research:

1.1.2 Advantages and disadvantages of secondary research:

1.1.2 Primary market research definition Primary research involves collecting data yourself (or paying someone to collect it for you) which is specific to your requirements. It is first hand information. It is also called f_____ research

1.1.2 Primary research methods

1.1.2 Primary market research – advantages and disadvantages

Quantitative data is ____________ data e.g. It can be collected by questionnaire, telephone surveys or online surveys It shows what is happening e.g. 56% of people don’t like the taste of Cola It provides data that can be analyzed statistically.

It can be collected by in-depth interviews or group discussions. 1.1.2 Qualitative data Qualitative data is information about __________________________________ It can be collected by in-depth interviews or group discussions. It explains why things happen e.g. people don’t like the taste of the new cola because it reminds them of cough medicine

The sample needs to be r_____________ of the p_____________ 1.1.2 Sampling You will be unable to ask everyone (unless you have a very, very small niche market!) and so you will need to sample (choose a selection). The sample needs to be r_____________ of the p_____________ The larger the sample the more accurate the results, the greater the confidence in the findings but the greater the cost. Typical political polls ask ______ people

Why might even a large sample be inaccurate? 1.1.2 Sample bias Why might even a large sample be inaccurate?

1.1.2 Use of IT to support market research Websites – Social media – Databases –

1.1.2 What are the advantages of using social media for market research?

1.1.2 Market segmentation - definition What is market segmentation? It is a technique where the market is broken down into smaller sections with similar characteristics. It is used to help a business target its products at the right customers.  It is about identifying the specific n_____ and w_____ of customer groups and then m________ those needs.

1.1.2 How can we segment a market?

1.1.2 Benefits of market segmentation

1.1.2 Drawbacks of market segmentation