ILO
a) Product and market orientation
b) Primary and secondary market research data
(quantitative and qualitative) used to:
- Identify and anticipate customer needs and wants
- quantify likely demand
- gain insight into customer behavior
c) Limitations of market research, sample size and bias
d) Use of ICT to support market research:
- websites
- social networking
- databases
e) Market segmentation
a) Product and market orientation
b) Primary and secondary market research data
(quantitative and qualitative) used to:
- Identify and anticipate customer needs and wants
- quantify likely demand
- gain insight into customer behavior
c) Limitations of market research, sample size and bias
d) Use of ICT to support market research:
- websites
- social networking
- databases
e) Market segmentation
a) Product and market orientation
Starter
Product orientation
• The product is the most important factor when providing products for a market
• The product is the most important factor when providing products for a market
What benefits are the for Apple of taking a product orientated approach? |
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Sony Walkman dominated the market for personal audio. What happened to the Sony Walkman? Why did this decline come about? What was the issue with it's product orientated approach? |
Market orientation
• The consumer is the most important factor when providing products for the market, the business has a sensitivity to customers requirements
• The consumer is the most important factor when providing products for the market, the business has a sensitivity to customers requirements
How are the above market orientated?
How do they achieve this?
What benefits will this have for them?
What are the potential drawbacks?
How do they achieve this?
What benefits will this have for them?
What are the potential drawbacks?
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b) Primary and secondary market research data
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What is meant by market research?
Why would Lego carry out market research? Why might larger firms not conduct market research? What risks occur if a company fails to conduct market research? What type of market research did they collect? |
Primary: Research gathered by researcher, the information does not yet exist
e.g. Questionnaires Observation Face to face interviews Focus groups Test marketing |
Secondary: Research using data that already exists and has been collected by someone else for another purpose
e.g. Market reports (MINTEL) Gov data Internet sources Trade publications |
Types of data in market research
What are the two different types of information that can be gathered?
What are the differences between the two types?
What are the two different types of information that can be gathered?
What are the differences between the two types?
Quantitative (Quantity) - information about quantities and can be measured and written down with numbers. This includes figures, numbers and calculations shown in text, tables and graphs. This can include:
• Market data • Market research data • Financial data • Costs and prices |
Qualitative (Quality information) - text and words used to describe, analyse and evaluate situations. This data is not in numerical form. This is descriptive information found by experiences or in textbooks or newspapers or reports.
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What are the advantages and disadvantages of quantitative v's qualitative data?
c) Limitations of market research
c) Sample Size and bias
Sample size
How will sample size and representation influence reliability? |
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Sample Bias
Why does Bias exist? How can it be removed? What was thee problem with the sample size of 2.4 million? What is more important? Sample size or who you ask? |
d) Use of ICT to support market research
What ways do you think ICT may have impacted the way in which a business conducts market research?
Websites:
Social media:
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What might be the potential problems of using this method to collect their data?
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Databases:
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What is the Tesco club card? How is it used?
What is the benefit of Tesco using this? Are there any potential drawbacks? |
e) Market segmentation
Watch the adverts below. What do you think is meant by market segmentation?
How would a business achieve it?
How would a business achieve it?
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Four most common methods of market segmentation
–Demographic, e.g. gender
–Geographic, e.g. Scotland, Wales, South of England
–Behavioural, based on usage or attitude to product e.g. Occasional, everyday
–Psychographic e.g. personality types, good with money (safe savers), or impulsive thrill seekers
–Demographic, e.g. gender
–Geographic, e.g. Scotland, Wales, South of England
–Behavioural, based on usage or attitude to product e.g. Occasional, everyday
–Psychographic e.g. personality types, good with money (safe savers), or impulsive thrill seekers
Advantages
- Helps business to get to know its customers - Focuses business strategy on a specific target audience - Encourages the business to specialise in meeting needs of specific segments - Provides focus for allocation of business resources |
Disadvantages
- Costly and time consuming process - Could lead to manufacture of too many different products - Could over narrow focus of business |