intro

• market orientated: when the firm investigates the needs of the customers before designing a product
• a market orientated company will attempt to:

  • create products on what customers want
  • develop brand loyalty by meeting the needs of the customers
  • gain competitive advantage by targeting and meeting the needs of specific customers
  • being able to identify changes in the market and the changes in wants of the customers in order to be the first to react
• market research: the process of collecting and interpreting data about customers and competitors
• effective market research results in:

  • helping the business to identify the wants and needs of customers to better meet them
  • allows business to spot gaps in the market which they can fill resulting in higher profit margins
  • allows businesses to respond quickly to changes in the market
  • helps the business to design its marketing mix to target the needs of different market segments
  • helps the firm design, develop and launch new products with greater confidence in success
  • helps the business reduce wastage of expenses for promotions or products that are higher likely to fail