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Flashcards in 3: Market Research Deck (12)
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1
Q

Market Research (2)

A
  • Process of gathering information about consumers,
  • Competitors and distributors within a firm’s target market
2
Q

Problem with product-orientated approach (7)

A
  • Doesn’t anticipate customers’ changing needs
  • So the market may evolve and leave you behind
  • Leading to lower market share
  • And potential cash flow issues
  • As sales plummet
  • And fixed costs remain high
  • E.g. Sony Walkman vs iPod
3
Q

Problem with market-orientated approach (5)

A
  • Can lose focus on the quality and reliability of the product
  • And focus on marketing gimmics instead
  • In the long run, the business may be associated with poor quality
  • So may find it hard to achieve distribution in up-market retail chains
  • Reducing potential sales channels

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4
Q

Methods of secondary data (3)

A
  • Internet (Google it)
  • Trade press (Info on a particular market)
  • Government-produced data (Census data)
5
Q

Methods of primary data (3)

A
  • Observation
  • Questionnaires
  • Focus groups
6
Q

Bias (1)

A
  • A factor that causes research findings to be unrepresentative of the whole population
7
Q

Sample size (2)

A
  • The number of people interviewed
  • M|ust be large enough to be representative
8
Q

Primary Research (3)

A
  • Gathering information first hand
  • E.g. questionnaires
    • Information is tailored to specific needs
9
Q

Secondary Research (3)

A
  • Finding out info that has already been gathered
  • E.g. census data
  • Information isn’t tailored to specific needs
10
Q

Methods of Qualitative research and reason for doing it (3)

A
  • Focus groups
  • Depth interviews
  • In-depth answers about buying habits and motivation
  • Therefore better understanding of market
  • So can adapt 4Ps
  • Meaning strong brand loyalty as consumers needs are met
  • Resulting in repeat purchases
  • = High sales
11
Q

Advantages/Disadvantages of Focus Groups (3)

A

(+) May reveal a problem/opportunity the company hadn’t anticipated

(+) Reveals consumer psychology

(-) May be swayed by one influential person

12
Q

Limitations of market research (3)

A
  • Sample bias
  • Sample size
  • Very high cost to get valid data