Market Research GCSE Business Studies

Definitions Marketing Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Market Research The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better informed decision-making. CIM's official definitions

Methods There are two methods of market research: –Primary/Field Research - involves collecting new information by making direct contact with consumers e.g. a questionnaire –Secondary/Desk Research - involves collecting information that already exists.

Primary Methods Questionnaires - face to face, postal or telephone Interview Observation Consumer Panel

Primary Methods Advantages –Information is taken directly from the people who are, or will be, the business’s consumers. –Detailed information can be gathered and opinions obtained –Information is up to date and collected for a specific purpose Disadvantages –Inaccurate – people may not give accurate answers e.g. they may say they will buy something when they won’t –Time and money – to design the primary research, carry it out and analyse the data

Secondary Methods Market research reports compiled by agencies such as MINTEL Data already collected by the business itself e.g. past sales figures The Office of Population Censuses and Surveys Office for National Statistics Public Libraries Newspapers Specialist magazines

Secondary Methods Advantages –Information is cheaper to obtain as it has already been collected –Information is available immediately –If taken from a reliable source the information should be reasonably accurate –The data available covers a wide range of sources Disadvantages –The data is unlikely to have been collected for exactly the same purpose as the business requires so it may not meet the business’s direct needs –Information may be out-of- date depending on when it was collected –Information is available to every other business

Market Segmentation The division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix. CIM's official definitions

Market Segmentation The people that the firm decides to investigate make up a segment of the market. Where the market has been divided up into groups of consumers who share similar characteristics. The market for a particular good or service can be divided up according to the key characteristics of the consumers in that market.

Market Segmentation

Sampling Firms have to decide how to select the people to be surveyed. It can do this in two ways, known as methods of Sampling. The two methods of sampling are: –Random – everyone an equal chance of being selected –Quota – this involves picking people to be surveyed so that they represent the make up of a particular market

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