1.2 market research

  • Created by: parker123
  • Created on: 16-11-18 11:17


  • 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. 


  • 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. 



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