1.2 market research

PRODUCT AND MARKET ORIENTATION

• PRODUCT ORIENTATION- buinesses focuses on production process & product itself, most efoort into developing & making product which believes consumers will buy. 
  • e.g. in past TV & radios and now the machine-tool industry (produces machines).
  • due to competition firms being forced to take into account consumer needs. 
  • these businesses put emphasis on making a technically sound product, producing it & then selling it. 
• MARKET ORIENTATION- businesses that continually identifies, reviews & analyses consumer needs, its led by market, they are more likely to be engaged in effective marketing. 
  • cinsumers are central to firms decision making. E.g ford Ts, iphone 6. 
  • a market orientated business has advantages over a product orientated buiness:
    • can respond more quickly to changes in the market, beacuse use market information. 
    • strong position to challenge competitiors, more able to anticipate market changes. 
    • more confident in launching new product as will be success. 
  • affect of a market orientated business on the business itself:
    • consult comsumer continuously ( market research), design product according to consumer, distribut product to buying habits & delivery requirments. 
    • set price where consumers are preparing to pay. 
  • the business must produce the right product at right price in right place, & let consumer know that its available - MARKETING MIX. 
• whether business placees a grewater emphasis on the product or the market will depend on:
  • The Nature of the Product-- where frim operates in industry at edge of new innovation.
  • Policy decision- businesses have certain objectives, technical quality, safety, production.
  • the views of those in control- managing director, place emphasis on cash flow & marketing director may be concerned with market research.
  • nature and size of the market- if production costs very high, then market orientated.
  • degree of competition- lack of, business puts more time into research, lots of then time into marketing. 

MARKET RESEARCH 

• involves gathering, presenting, analysing info about marketing and cosumption of products. 
• money spent on market research to reduce risk of failure. 
  • Identifiy & anticipate customer needs & wants-- e.g. colour, style, economy. data market researchers gather needs to be qualitative. 
  • quantify the likey demand for a product-- important to know how much of product a business might expect to sell, this will in quantitative. helps determine whether product in commerically viable. so a business will know how much to produce if any. 
  • provide an insight into consumer behaviour-- e.g. when booking holidays, no. holidays per year, methods used to book them. data is qualitive helps idientify opportunities. 

PRIMARY…