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