1.1.2 Market Research

• Product Orientation


  A firm producing goods that it is efficient in making rather than what customers want
• Market Orientation


  Producing goods based on the customers' wants and needs
• Market Segmentation


  Dividing potential buyers into groups by their shared needs
• Market Mapping


  Organising competitors in an industry based on two factors to identify market trends and gaps in the market
• Benefits of Market Research

  Reduces risk, develop a marketing plan, quantify consumer demand, prepare for changes in the market
• Primary Research Methods

  Questionnaires, observation, customer interviews, test marketing, focus groups
• Secondary Research Methods


  Government sources, trade publication, market reports and internet sources
• Bias

  Findings are invalid due to how research was conducted eg. interviewer bias, biased questions, respondent bias
• Use of ICT for Market Research (Websites)


  -Pop-ups to ask customers what they have bought

  -Gather email addresses to offer discounts then send surveys

  -Sites like the Grocer have industry-specific quantitative data
• Use of ICT for Market Research (Social Network)


  -Hashtags can show what is trending

  -A brand or business can be searched to learn about customer views