market research

• A product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
•  problem with being too product orientated is that over time your business may move further and further away from what the market is looking for, thus increasing the risk of business failure
• tools of product orientation- product research, product testing and product focus
• Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs 
•  market orientation is that the firm will benefit from increased demand, increased profits, and a valued brand image as its products become more desirable
• • tools for market orientation- market research, market testing and customer focus
• Effective market research will help the business 

  • To reduce risk when launching new products or entering new markets
  • Anticipate future needs and wants of consumers
  • To understand consumer behaviour 
  • To identify potential consumer demand 
  • To identify how much consumers are prepared to pay
• Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, and focus groups
• advantages of primary research is-  more up-to-date and can be used to ask specific questions

  its specific for the purpose it is needed for allowing this to be great for niche markets
• disadvantages of primary research- The sample size may be too small and unrepresentative

  time consuming

  Bias 

  • may need to hire a specialist market research agency expensive
• Secondary research involves the collection, compilation, and analysis of data that already exists
• examples of secondary research- purchasing market reports from specialist companies or accessing government statistical portals 
• advantages of secondary research-

  already available and so is quicker to collect  cheaper to collect leading to lower costs
• disadvantages of secondary data- may not be accurate, may not be relevant, may not be up to date
• use of ict for market research- Websites allow businesses to collect primary data more cheaply e.g. tracking consumer searches and analyzing customer reviews as well as collecting secondary data about rivals e.g. prices and special offers.
• • use of ICT in market research Databases These can be used to store large amounts of customer information e.g. Tesco loyalty cards
• Use of ICT in market research Social media sites such as Facebook can be used by businesses to gather information on their target markets through online surveys and polls
• Market segmentation is the process in which a single market is divided into sub markets or 'segments'

  • Each segment represents a slightly different set of consumer characteristics
• segments include- demographic, geographic, income and behavioural
• advantge of market segmentation- allows businesses to focus on the needs of their target market, which can help them to develop a more effective marketing strategy
• disadvantage of market segmentation- it may not always be possible to identify all segments within a market, so some consumers will inevitably be left out of any particular campaign or product development