2 MARKETING

2.1 MARKET RESEARCH

New Topic

CAN YOU IDENTIFY ALL THESE BRANDS?

2.1 MARKET RESEARCH

2.1 CONDUCTING MARKET RESEARCH WITH LIMITED

BUDGETS

In this topic you will learn about

Reasons for conducting market research

Market research methods

2.1 MARKET RESEARCH

If you were planning to open a clothes shop in your local area what

information would you want to know before making important decisions?

MARKET RESEARCH

What is marketing?

The identification, satisfying and revisiting of customer needs

Researching the market before deciding on product, price, place and promotion

What is market research?

Market research is the collection and analysis of data and information to inform a business about its market. This could include:

Customers

Competitors

Market place

2.1 MARKET RESEARCH

REASONS FOR CONDUCTING MARKET

RESEARCH

Start-up market research

Part ofBusiness Plan

Helps assess feasibility

Identifies potential demand

Informs sales forecasting

Lack of experience

2.1 MARKET RESEARCH

REASONS FOR CONDUCTING MARKET

RESEARCH

2.1 MARKET RESEARCH

Jasmine is a designer of unique silver and pewter rings for both men and women. Her friends and family love her designs and believe that

she could become known as a top designer. Jasmine’s Mum has offered to help her set up a small shop in their home town of

Bournemouth. Her Dad thinks that this is a good idea. However, he is concerned about the number of new shops that open and close

shortly afterwards due to lack of demand. He suggests that Jasmine should carry out some market research before opening the shop.

Question time1.What is meant by ‘market research’? (2 marks)2.Explain 2 reasons why Jasmine should carry out market research before opening her shop. (4 marks)3.Explain 1 reason why Jasmine should look at her competitors in the market. (2 marks)

STARTER

2.1 MARKET RESEARCH

Marketing is not just a_____________, promotion and s____________. Marketing covers many m_______ activities such as the development of a p___________, finding out what customer might b_____ the product, what p_____________ should be used, what p_________ should be charged and where the product should be s______.

Packaging / Advertising / buy / product / price / selling / sold / more

2.1 MARKET RESEARCH

METHODS OF MARKET RESEARCH

There are two categories of market research:

Primary market research (field research) involves the collection of first hand data that did not exist before. Therefore it is original data.

Secondary market research (desk research) is research that has already been undertaken by another organisation and therefore already exists.

METHODS OF MARKET RESEARCH

ON A LIMITED BUDGET

Market Research Primary Secondary

Advantages • specific to your needs• up to date

• already exists• may be compiled by experts• quick to access•Can be cheap

Disadvantages • lack of expertise• time consuming• results may be limited•Expensive to do

• can be out of date•not specific to you

2.1 MARKET RESEARCH

Would you take part in market research on lip balm?

2.1 MARKET RESEARCH

METHODS OF MARKET RESEARCH

Telephone SurveysA survey is a set of predetermined questions to be answered by

the respondent.Normally questions are short and closed.

Surveys can be:Postal

TelephoneFace–to-face

On-line

QuestionnairesA questionnaire, like a survey, is a set of predetermined questions

to be answered by the respondent.May include open and closed questions, but primarily closed.

A relatively easy way to collect consumer opinions.

2.1 MARKET RESEARCH

METHODS OF MARKET RESEARCH

ON A LIMITED BUDGET

Focus Groups Groups of consumers who share their views and opinions in a

focussed discussion.Provides qualitative data.

Allows for follow up questions.

Why might a business choose to run a focus group rather than a survey to collect consumer opinions?

2.1 MARKET RESEARCH

METHODS OF MARKET RESEARCH

ON A LIMITED BUDGET

Internet ResearchUsing information that already has been collected and is

available on the internet (secondary research).Wide range of information freely available.

Can carry out research independently.

Examples of internet research:www.statistics.gov.uk

www.yell.comwww.upmystreet.com

How much do we really understand about the internet?

MARKET RESEARCH

2.1 MARKET RESEARCH

Jasmine has decided to take her Dad’s advice and carry out some market research. She spoke to her Dad in more detail and he

suggested she used secondary market research due to her limited budget. However, Jasmine is also keen to speak to potential

customers to find out their views on her designs, location and pricing.

Question time1 What is meant by ‘secondary research’? (2 marks)2 Explain 2 benefits to Jasmine of using secondary market research.

(4 marks)3 Suggest a suitable market research method for Jasmine to find out about consumers’ opinions. Justify your answer. (6 marks)

MARKET RESEARCH

Research Method Advantages Disadvantages

Telephone survey

Face to face survey

Postal survey

On line survey

Supplier feedback

Focus group

Questionnaire

Customer feedback

Internet Research2.1 MARKET RESEARCH

Work in pairs to complete the table below.

5 MINUTE TEST

Define marketing

Distinguish between primary and secondary market research

What is a focus group?

State 1 advantage and 1 disadvantage of primary market research

State 1 advantage and 1 disadvantage of secondary market research

What is the key factor limiting the amount and type of research a new business can conduct?End