unit 1.12

Question 1

1A) What is Market orientation

1B) and what is a disadvantage of this

Answer 1

1A) An approach to marketing that focuses on creating the product first than meeting consumer needs

1B) Over time the business may become too product oriented and move further away from what the market is looking for

Question 2

1A) What is market orientation?

1B) What is an advantage of this

Answer 2

1A) An approach to marketing that focuses on the needs of the market, and uses that to develop a product that meets consumer needs

1B) The business will gain an increased demand, increased profits and a valued brand image, as its products are desirable

Question 3

What is market reasearch?

Answer 3

The collection and analysis of information about a market

Question 4

What is the effect of market research ?

Answer 4

1) It can reduce risk when launching new products or entering new markets

2) It can help anticipate the future needs and wants of consumers

3) It can help understand consumer behaviour

4) It can help identify potential consumer demand

4) It can identify how much consumers are willing to pay for a product or service

5) It can identify competitors and know their strengths and weaknesses

Question 5

What are the types of primary market research?

Answer 5

1) Surveys- Asking questions to a number of people and using results to make inferences about a market

2) Observation-Hiring someone to stand in a location and study behaviour

3) Interviews- Interviewer asking certain people questions

4) Test marketing- Free samples provided to target market

5) Focus groups- group of people from target market discuss about a product

Question 6

What are some advantages of primary research?

Answer 6

1) information gathered is specific to the needs of a business and is not available to its rivals
2) Specific questions can be asked
3) Information is not up to date

Question 7

What are the disadvantages of primary research?

Answer 7

1) The sample may not be a good representative of target market
2) researchers may be bias, causing innacurate results
3) businesses may need to hire specialists which can be costly

Question 8

What are the disadvantages of secondary research?

Answer 8

1) Information is already available, so quick to collect
2) Information is often free, so cheap to collect
3) Suitable for small businesses

Question 9

What are the disadvantages of seconadary research

Answer 9

1) Information may not be factual and lack relevance
2) It may be expensive to purchase data from specific companies
3) The information may be out of date

Question 10

How do websites support market research?

Answer 10

1) company websites allow businesses to collect primary data cheaply
e.g tracking consumer searches and analysing customer reviews

Question 11

How are databases used to support market research?

Answer 11

Data bases store larger amounts of customer information
e.g loyalty cards, email

Question 12

How is social networking to support market research?

Answer 12

Social networking gathers information about consumers via online social channels
e.g twitter, youtube

Question 13

What is market segmentation?

Answer 13

Market segmentation is the process by which a single market is divided into smaller sub markets

Question 14

How does market segmentation work?

Answer 14

a market for a good is divided into many smaller segments, each segment is a representation of a different set of consumer characteristics

Question 15

What are the advantages of market segmentation

Answer 15

1) Products and services can be altered to meet the needs of different groups of consumers

2) it is less expensive and wasteful than targetting products to wide market

Question 16

What are the disadvantages of market segmentation?

Answer 16

1) Not everyone within a segment will behave the same way

2) Consumers may belong to multiple segments at a time, so difficult to identify where they belong

3) segmentation requires detailed market research which can be costly

4) A Market segment identified may be too small and unprofitable to cater