Marketing

• 2.1 Product Led vs Market Led

  Product-led is when an organisation produces a product first and then tries to sell it to customers whereas a market-led focuses on customer wants and produces a product to satisfy them

  
  

  Very little market research is carried out with product-led whereas in marke- led there is a lot of market research carried out before production starts

  
  

  In product-led the organisation focuses on product testing but in market-led the organisation focuses on market testing

  
  

  Market-led is more likely to adapt to changes in consumer tastes, whereas product-led is more likely to develop an innovative product with a USP.
• 2.1 Habitual/Routine Spending

  Purchasing the same products as normal. Usually for products which are of little importance and require little thought.
• 2.1 Informed Spending

  Purchasing decisions are made based on information. Consumers may take time to investigate the product and consider alternatives. Usually for long-term purchases.
• Impulsive Spending


  These happen without much thought, but happen because a product has caught a customer's eye. Usually only for medium-to-low value items.
• 2.2. Field Research

  Involves gathering brand new information suitable for the business' exact needs.
• 2.2 Advantages of Field Research

  Gathered when the business requires, so up-to-date.

  
  

  Methods and information can be validated by the firm, making it more accurate.

  
  

  Firm can decide which information is gathered, making it more complete.
• 2.2 Disadvantages of Field Research


  Time-consuming to gather as methods must be set up, collected, and analysed.

  
  

  Costly due to training required to properly perform methods.
• 2.2 Questionaire


  Individuals are asked to answer specific questions to discern their wants/needs. Can be issues online as well as face-to-face.
• 2.2 Advantages of a Questionnaire


  Gathers a wide range of responses, making information more likely to be accurate.

  
  

  Survey software can perform analysis for you, cutting down the time it takes in comparison to other methods.
• 2.2 Disadvantages of a Questionnaire

  Questions must be simple, meaning lack of in-depth responses.

  
  

  Response rate tends to be low, so may need to incentive participants.
• 2.2 Interview

  a 1-to-1 where an individual is asked questions about a potential product/service to get detailed responses.
• 2.2 Advantages of an Interview

  Two-way communication means an interview can explore why participants hold certain views. Making information more complete.

  
  

  Body language can be read to understand true feelings, gaining more accuracy.
• 2.2 Disadvantages of an Interview

  Interviewers must be skilled, which requires training - this adds to costs.

  
  

  They can take a long-time to prepare, conduct, and analyse - could potentially be slow to act as business.
• 2.2 Focus Group

  An interview of several people at once to facilitate discussion around a potential product/service.
• 2.2 Advantages of a Focus Group

  Qualitative information provided in the form of opinions, feelings and attitudes; can make information more complete

  
  

  Discussion among participants may encourage more honesty than a 1-to-1 interview, reducing bias.
• 2.2 Disadvantages of a Focus Group

  Interviewers must be skilled, which requires training - this adds to costs.

  
  

  One person could dominate discussion, limiting the variety of opinions received.
• 2.2 Observation

  Consumer behaviour is watched by researchers and recorded to identify patterns
• 2.2 Advantages of an Observation

  Inexpensive as it requires little training to observe and record results.

  
  

  Participants unaware they are being observed will act naturally, increasing accuracy.
• 2.2 Disadvantages of an Observation

  Identifies what happens but not why it happens; this makes information incomplete.

  
  

  It can be time-consuming to watch over long periods.
• 2.2 Desk Research

  Involves repurposing information that was previously gathered for a different reason.
• 2.2 Advantages of Desk Research

  Quick to gather, meaning decisions can be made soon.

  
  

  Does not require trained researchers meaning it is cost-effective.

  
  

  Easy to look up as it already exists.
• 2.2 Disadvantages of Desk Research

  Could be bias if prepared by someone with something to gain; company websites, newspapers with political agendas.

  
  

  Information is unlikely to be specific to business needs as collected for another purpose.
• 2.2 Sales Figures

  Sales data from previous years can be used to look at up and down periods, as well as the success of different products.
• 2.2 Advantages of Sales Figures

  Can see how decisions directly translate into sales revenue. While other methods may let us know what customers think, what matters is if they actually purchase the product.
• 2.2 Disadvantages of Sales Figures


  Could be bias if prepared by someone with something to gain; company websites, newspapers with political agendas.
• 2.2 Government Data

  Information gathered by the government on the age, cultures, income, level of education, etc. Can all relate to customers.
• 2.2 Advantages of Government Data


  Likely to be accurate due to census data asking the entire population, rather than a sample.
• 2.2 Disadvantages of Government Data


  Sheer volume of data can make it hard to identify information required for business needs.
• 2.2 Market Reports

  Provides information on the expected changes in an industry such as growth in revenue, changes in spending patterns, and potential strategies of firms in this sector.
• 2.2 Advantages of Market Reports


  Gains information on the trends in specific industries the firms operate in.
• 2.2 Disadvantages of Market Reports

  Often have to be payed for.
• 2.2 Internet

  Can provide access to company websites and other news stories which can impact business decisions.
• 2.2 Advantages of Internet

  Vast amount of information can be sought, answering a variety of questions.
• 2.2 Disadvantages of Internet

  Sheer volume of data can make it time-consuming to decide what is valid and valuable.
• 2.2 Random Sampling vs Quota Sampling


  Random sampling is when respondents are picked randomly, whereas quota is picked from a group of people with specific characteristics

  
  

  Random uses pre-selected respondents who must be asked to take part in the research,, whereas Quota allows researcher to find respondents who fit the characteristics required

  
  

  Random is expensive to carry out because specific respondents must be interviewed and contacted until they are available, whereas Quota is less expensive as the interviewer simply needs to find suitable respondents

  
  

  Random sampling reduces biased results because of method of selection of respondents, whereas bias can occur with quota sampling as the interviewer decides who to question
• 2.2 Advantages of Random Sampling

  Less chance of bias due to random choice.

  
  

  Simple and quick method
• 2.2 Disadvantages of Random Sampling

  May not represent your market

  
  

  Can be expensive as you will require a large sample
• 2.2 Advantages of Quota Sampling

  Less respondents required, so cheaper.

  
  

  Can be representative of different market segments
• 2.2 Disadvantages of Quota Sampling

  Can be biased as people have to be selected.

  
  

  Can take more time to find enough people meeting characteristics.
• 2.4 Product Life Cycle


  The stages a product goes through over time from it first being introduced to consumers until it is removed from the market. A product's life cycle is usually broken down into five stages; research and development, introduction, growth, maturity, and decline.