2.1 Conducting Market Research with Limited Budgets 2 M ARKETING 2.1 M ARKET R ESEARCH New Topic

C AN YOU IDENTIFY ALL THESE BRANDS ? 2.1 M ARKET R ESEARCH

2.1 C ONDUCTING M ARKET R ESEARCH WITH L IMITED B UDGETS  In this topic you will learn about  Reasons for conducting market research  Market research methods 2.1 M ARKET R ESEARCH If you were planning to open a clothes shop in your local area what information would you want to know before making important decisions?

M ARKET R ESEARCH  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 M ARKET R ESEARCH

R EASONS FOR C ONDUCTING M ARKET R ESEARCH Start-up market research Part of Business Plan Helps assess feasibility Identifies potential demand Informs sales forecasting Lack of experience 2.1 M ARKET R ESEARCH

R EASONS FOR CONDUCTING MARKET RESEARCH 2.1 M ARKET R ESEARCH 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 time 1.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)

S TARTER 2.1 M ARKET R ESEARCH 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 M ARKET R ESEARCH M ETHODS 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.

M ETHODS OF MARKET RESEARCH ON A LIMITED BUDGET Market ResearchPrimarySecondary 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 M ARKET R ESEARCH Would you take part in market research on lip balm?

2.1 M ARKET R ESEARCH M ETHODS OF MARKET RESEARCH Telephone Surveys A survey is a set of predetermined questions to be answered by the respondent. Normally questions are short and closed. 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.

2.1 M ARKET R ESEARCH M ETHODS 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 M ARKET R ESEARCH M ETHODS OF MARKET RESEARCH ON A LIMITED BUDGET Internet Research Using 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: How much do we really understand about the internet?

M ARKET R ESEARCH 2.1 M ARKET R ESEARCH 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 time 1 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)

M ARKET R ESEARCH Research MethodAdvantagesDisadvantages Telephone survey Face to face survey Postal survey On line survey Supplier feedback Focus group Questionnaire Customer feedback Internet Research 2.1 M ARKET R ESEARCH Work in pairs to complete the table below.

5 M INUTE T EST  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