Summary of "1 1 2 Market Research - The Real Deal Business A level Edexcel"

Key Concepts in Market Research for Business Studies

The video covers essential topics in market research, focusing on product and market orientation, types of market research data, the role of ICT, and market segmentation.

Product Orientation Focuses on the product itself, assuming it will sell due to its quality or innovation (e.g., Apple). Tools: Product research, product testing, product-centric approach. Risks: Over-orientation may cause products to deviate from customer needs.
Market Orientation Focuses on customer needs to guide product development (e.g., Amazon). Tools: Market research, market testing, customer focus. Benefits: Higher customer value and demand through better alignment with customer preferences.

Market research is the objective collection, compilation, and analysis of market information. It is used to:

Primary Data Collected directly from customers via surveys, interviews, observations, or test marketing. Advantages:
- Relevant and up-to-date
- Exclusive to the firm Disadvantages:
- Expensive and time-consuming
- Potential bias
- Small sample sizes may reduce accuracy
Secondary Data Existing data from external sources such as competitors, market research companies (e.g., Mintel), or government websites. Advantages:
- Faster and cheaper to collect
- Suitable for smaller firms Disadvantages:
- May lack relevance or be outdated
- Can be costly if purchased from third parties

Information and Communication Technology (ICT) enhances market research by:

Using company websites to collect primary data cheaply through tracking customer behavior and gathering reviews
Accessing competitor websites as secondary data sources
Storing customer information in databases for targeted email marketing and surveys
Leveraging social media for direct customer engagement, competitor insights, and real-time polling

Market segmentation involves dividing a market into submarkets (segments) based on factors such as income, gender, location, or lifestyle.

Example:
- Ford targets lower-income segments
- Rolls-Royce targets high-income luxury buyers
Advantages:
- More accurate targeting
- Less wasteful marketing
- Increased customer loyalty
Disadvantages:
- Not all customers in a segment behave uniformly
- Identifying viable segments can be difficult
- Detailed research increases costs

Identify whether a product or market orientation suits the business.
Decide on the type of data needed (primary or secondary).
Collect primary data via surveys, interviews, observations, or test marketing.
Gather secondary data from competitors, market research firms, or government sources.
Use ICT tools (websites, databases, social media) to enhance data collection and analysis.
Segment the market to target specific customer groups effectively.
Analyze data to reduce market entry risks and align products with customer needs.