MARKET RESEARCH Can you identify 3 types of market research? EQUATES IN IRON VERY US CUPS FOUR GO 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 3.1.2 Market Research

Market Research What is market research? Market research is the collection and analysis of data and information to inform a business about its market This could includes: Customers Competitors Market place Market research can be either qualitative or quantitative 3.1.2 Market Research

Qualitative Research Qualitative research is the gathering of non-statistical information that gives a company in depth insight into the reasons for human behaviour Suitable methods of collection include: focus groups taste panels open ended questions in depth interviews 3.1.2 Market Research

Quantitative Research Quantitative research is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons Suitable methods of collection include: closed questions observations surveys 3.1.2 Market Research

Market research – Question time The flow chart opposite is taken from McDonalds who carry out on-going market research to help determine a suitable marketing mix. Identify one method of collecting quantitative data. (1) Explain how collecting quantitative data might help McDonalds improve its marketing mix. (3) Identify one method of collecting qualitative data. (1) Explain how collecting qualitative data might help McDonalds improve its marketing mix. (3) Which type of data do you think would be the most useful to McDonalds in improving its marketing mix? Justify your answer. (6) Source: www.mcdonalds.co.uk

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. 3.1.2 Market Research

Methods of market research Primary Secondary Advantages specific to your needs up to date can be cheap already exists may be compiled by experts quick to access Disadvantages lack of expertise time consuming results may be limited can be out of date often expensive not specific to you Lip balm market research 3.1.2 Market Research

Methods of market research Telephone and other Surveys A survey is a set of predetermined questions to be answered by the respondent. Normally questions are short and closed. Often provides respondents with options to choose from. Surveys can be: Postal Telephone Face–to-face On-line Questionnaires A 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. Have you ever taken part in a survey? What type of survey was it? What was the purpose of the survey? How do you respond when someone approaches you in the street or rings you up asking you to take part in a survey? 3.1.2 Market Research

Methods of market research Customer/supplier feedback Listening to the views and opinions of 2 important stakeholders. Suppliers may have knowledge of trends in the market. Responding to customers wants and expectations. Focus Groups Groups of consumers who share their views and opinions in a focussed discussion. Provides qualitative data. Allows for follow up questions. Often when a customer returns from a holiday the tour operator will question them about their experience on topics such as checking in, cleanliness, food, value for money etc. What are the advantages to the tour operator of doing this? Focus Group Research: BBQ Sauce Packaging by Weatherchem Why might a business choose to run a focus group rather than a survey to collect consumer opinions? 3.1.2 Market Research

Methods of market research Internet Research Using information that already has been collected and is available on the internet. Wide range of information freely available. Can carry out research independently. Examples of internet research: www.statistics.gov.uk www.yell.com www.upmystreet.com Visit these sites to identify the type of information available. Explain how a business looking to set up in your area might use this information. The IT Crowd - Series 3 - Episode 4: The Internet How much do we really understand about the internet? 3.1.2 Market Research

Say what you see Just collecting market research is not enough, it is the interpretation and analysis that is important. 3.1.2 Market Research

Work in pairs to complete the table below. Market Research Work in pairs to complete the table below. Research Method Advantages Disadvantages Telephone survey Face to face survey Postal survey On line survey Supplier feedback Focus group Questionnaire Customer feedback Internet Research 3.1.2 Market Research

3.1.2 Market Research McDonalds say that market research considers everything that affects buying decisions Source: www.mcdonalds.co.uk For each of the five factors identified above would you use primary research, secondary research or a combination of the two? Justify your views.

View Subway’s online survey With reference to the survey explain what is meant by qualitative and quantitative data. Is this an example of primary or secondary research? Why do you think Subway collect personal information from their customers? State and justify one other method Subway could use to help meet customers’ needs. Explain how Subway could use the results from this survey to improve their marketing mix. http://www.surveymonkey.com/s.aspx?sm=LCsORA6dnX4q01hgI2FcpQ_3d_3d 3.1.2 Market Research

End 5 Minute Test Define marketing Distinguish between primary and secondary market research What is a focus group? State 1 advantage and 1 disadvantage of using qualitative market research State 1 advantage and 1 disadvantage of using quantitative market research What is the key factor limiting the amount and type of research a new business can conduct? End 3.1.2 Market Research