1.1.2 Market research - syllabus
Candidates should be able to:
 distinguish between product and market
orientation
 define primary and secondary market research
and differentiate between qualitative and
quantitative data
 analyse how research can identify and
anticipate customer needs and wants; quantify
likely demand and explain consumer behaviour
 describe the limitations of market research,
sample size and bias
 explain how ICT can support market research
 define market segmentation
1.1.2 Product versus market orientation
Product orientation is when a firm bases
decisions on what they do best. It focuses
on the production process and the product
itself, contact with customers is at the final
stage.
E.g.
Market orientation is when a firm bases
decisions on what ______________ want.
E.g.
1.1.2 What are the advantages of market
orientation?
1.1.2 What is the effect of having a market
orientation approach on a business?





Must consult __________ continuously
(market research)
Design the product according to
consumer wishes
Produce the quantity required and
distribute according to buying habits
and delivery requirements
Set price at level consumer is prepared
to pay
These may be e___________
1.1.2 Why should a business choose product
or market orientation?

Nature of the product –

Objectives – safety (_______ orientation)
or market share (_________ orientation)
Nature and size of the m_______
Degree of c____________
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
1.1.2 What is market research?
Market research is the process of
1.1.2 Secondary research
What is secondary research?
It can be internal or external information
It is second hand information
It is also called desk research
1.1.2 Sources of secondary research:
1.1.2 Advantages and disadvantages of
secondary research:
1.1.2 Primary market research definition
Primary research involves collecting data
yourself (or paying someone to collect it
for you) which is specific to your
requirements.
It is first hand information.
It is also called f_____ research
1.1.2 Primary research methods
1.1.2 Primary market research – advantages
and disadvantages
1.1.2 Quantitative data
Quantitative data is ____________ data
e.g.
It can be collected by questionnaire,
telephone surveys or online surveys
It shows what is happening e.g. 56% of
people don’t like the taste of Cola
It provides data that can be analyzed
statistically.
1.1.2 Qualitative data
Qualitative data is information about
__________________________________
It can be collected by in-depth interviews
or group discussions.
It explains why things happen e.g. people
don’t like the taste of the new cola
because it reminds them of cough
medicine
1.1.2 Sampling
You will be unable to ask everyone (unless
you have a very, very small niche market!)
and so you will need to sample (choose a
selection).
The sample needs to be r_____________
of the p_____________
The larger the sample the more accurate
the results, the greater the confidence in the
findings but the greater the cost.
Typical political polls ask ______ people
1.1.2 Sample bias
Why might even a large sample be
inaccurate?
1.1.2 Use of IT to support market research

Websites –

Social media –

Databases –
1.1.2 What are the advantages of using social
media for market research?
1.1.2 Market segmentation - definition
What is market segmentation?
It is a technique where the market is broken
down into smaller sections with similar
characteristics.
It is used to help a business target its
products at the right customers.
It is about identifying the specific n_____
and w_____ of customer groups and then
m________ those needs.
1.1.2 How can we segment a market?
1.1.2 Benefits of market segmentation
1.1.2 Drawbacks of market segmentation