A2 Unit 8 Business Planning Task 6 Primary Research

Starter Activity  Try this general multiple choice quiz to see how much general understanding of market research you have remembered?  studies/marketing/interactive-quizzes/827- marketing-research-penalty-shoot-out-quiz studies/marketing/interactive-quizzes/827- marketing-research-penalty-shoot-out-quiz

Presentation Objectives  By the end of this presentation you should  be able to define primary research and explain its advantages.  Chosen the most appropriate methods of primary research to investigate your business idea.  Have designed and conducted primary research into your business idea  Collated; charted and analysed your results.

Qualitative & Quantitative Research StatementQualitative or Quantitative Statistics Subjective Consumer behaviour Usually relates to market size and share. In depth Surveys Interviews

Methods of Primary Research  There are many different ways of conducting primary research. At A2 level it is not enough to conduct a simple survey to 20 fellow 6 th formers. How many can you name?  Observation  Experiments  Interview  Focus Group  Consumer panel  Surveys -

Observation  EITHER/AND  Watch the following video clip of Asda Shoppers   Identify 3 things Asda learnt by observing the behaviour of their customers  1.  2.  3. What are the advantages and disadvantages of using observation as a method of market research?

Observation  OR  Watch the following video clip of John Lewis   How and why did John Lewis conduct observation?  What are the advantages and disadvantages of using observation as a method of market research?

Observation Advantages  What people do rather than say  Customers don’t know its happening  Less potential bias  Doesn’t rely on memory of respondent. Disadvantages  Time consuming  Don’t find out why consumers have behaved in the way they do  Could misinterpret behaviour

Experiments  Experiments aim to measure and evaluate customers’ reactions to changes in the marketing mix. They can be done under controlled conditions in e.g. a laboratory or in the field. Experiments can range from:  simply moving a products’ place in a shop and seeing what happens to sales  Blind tasting  Test marketing

A Simple Experiment  In 1998 Richard Reed, Adam Balon and Jon Wright were working in an advertising agency but wanted to leave to start their own Smoothie business. After spending six months working on smoothie recipes and £500 on fruit, the trio sold their drinks from a stall at a music festival in London. People were asked to put their empty bottles in a 'yes' or 'no' bin depending on whether they thought the three should quit their jobs to make smoothies  Do you think we should give up our day jobs to make these smoothies?  At the end of the festival the 'YES' bin was full, with only three cups in the 'NO' bin, so they went to their work the next day and resigned

Blind tasting  The Pepsi Challenge  The Pepsi Challenge has been an ongoing marketing promotion run by PepsiCo since The challenge takes the form of a taste test. At malls, shopping centres and other public locations, a Pepsi representative sets up a table with two blank cups: one containing Pepsi and one with Coca-Cola. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi.marketing PepsiCoPepsiCoca-Cola  Now try this challenge for yourself or conduct on some of your friends.  As a result of the challenge explain in your own words 2 advantages and 2 disadvantages of using this method of research.

Focus Group Watch the following clip.  dex.php/business- studies/comments/who-ate-all- the-piesthe-focus-group-did dex.php/business- studies/comments/who-ate-all- the-piesthe-focus-group-did  Describe how a focus group works.  Complete the table, which describes the plus’ and minus’ of using focus group.  On what would your decision to use a focus group depend. PlusMinus

Focus Group – Plus; Minus; Depends PlusMinus CheapNeeds a good moderator QuickCan get carried away from the point QualitativeNot everyone might participate Discussion encourages participation

Consumer Panel  A panel consists of a representative sample of people, who are used on a continuous basis to assess attitudes over a period of time.  Tf6gdfE Tf6gdfE

Surveys What is a survey? Complete the table on the next slide to help you decide which type of survey you going to carry out and why. Choose from:  Face to face  Telephone  Postal  On line

MethodResponse Rate CostTimeNon response bias Face to face Postal Phone Electronic HIGH LOW MODERATE SLOW FAST

Question Design  Whether you conduct a survey, focus group, consumer panel or interview the way in which you write your questions is very important.  They should:  Follow a logical sequence  Be simple to understand  Lack bias  Be as specific as possible  Use response bands but allow for other options  The following web link will help:  tations/marketing/questionnaires/defau lt.html tations/marketing/questionnaires/defau lt.html

Question Design  Closed Questions – is where there are a limited number of predetermined answers.  E.g. Dichotomous – 2 options e.g Yes/No  Multiple choice – 3 or more answers  Scale – gives a numerical value to subjective concepts e.g how would you rate customer service at MacDonalds on a scale of 1-10 with 1 – poor and 10 excellent  Likert Scale – strength of views e.g Strongly agree to Strongly disagree  Semantic Differential – a scale between 2 opposite words e.g. from old fashioned to modern  Importance scale – rate factors on importance form Extremely important to Not at all important  Rating – poor to excellent

Question Design  Open ended questions  Used to gain more detailed information, these allow a respondent to say what they think. E.g. what do you think about or what is the first thing that comes into your mind when you think of…?  If you wish to read more about question design try:  questionnaires/default.html questionnaires/default.html

Primary Research  Decide which method of primary research is most suited to your product/service.  You should aim to do more than one type.  Use the next slide to remind yourself of the type of information you need to find out.  Make sure that you have it checked before you carry it out.

Purposes of the Questionnaire  What information do you need to find out?  The consumer – age, sex etc  Current attitudes towards the product and its’ competitors e.g. which brands do they buy; how often do they buy; why do they buy; what flavours do they like;how do they rate the product  Future attitudes- what will influence their attitudes in the future.  Price –what price do they pay; what price would they pay  Promotion – how have they found out about products? Which advertising media have influenced them to buy? Can they identify adverts? Which sales promotions persuade them to buy?  Place – where do they buy from? Which retail outlets do they most frequently use?

Sampling  It is impossible to ask everyone your questionnaire. Therefore, you will sample a smaller cross section. Your choice of sample is very important to the usefulness of your results. Choose the most appropriate sample from the following types:  If you wish to find out more about sampling try:  rketing/sampling/default.html rketing/sampling/default.html

Probability Samples

Non Probability Samples

Analysing and evaluating  Once the data has been collected you need to  PRESENT IT- convert your results into a variety of different charts; graphs and tables. Do not use the same type of chart throughout.  ANALYSE IT – describe what each graph/chart shows, identifying any trends and try to explain the.