Market Research and Business Orientation Strategies

Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market.

Product-Orientated vs. Market-Orientated Businesses

A product-orientated business focuses primarily on the product itself. Key characteristics include:

• They produce the product first, then attempt to find a market for it.
• They often produce basic necessities, such as agricultural tools or fresh foods.
• They may lack a recognizable brand name.
• Products are sometimes launched without testing, meaning consumers may hesitate to purchase them until they are fully evaluated.

A market-orientated business carries out market research to identify consumer wants before a product is developed and produced. These businesses are generally more successful and adaptable to changes in customer tastes.

Marketing Budget

A marketing budget is a financial plan for the marketing of a product or range over a specified period. It defines the available funds, ensuring the marketing department operates within its financial limits.

Market Research Methods

Market research data is categorized into two types:

• Quantitative information: Answers questions regarding the quantity of something.
• Qualitative information: Answers questions where an opinion or judgment is necessary.

Primary Market Research

Also known as field research, this involves the collection and collation of original data through direct contact with potential or existing customers.

Advantages

• It is up-to-date and relevant to the business.
• It provides first-hand data, planned and executed by those who intend to use it.
• It is highly effective for solving specific business problems (e.g., testing if a new product will succeed).
• The data is exclusive and not available to competitors.

Disadvantages

• It can be expensive (e.g., conducting large-scale interviews).
• It is not available immediately, as it requires time to collect.