AQA GCSE Business Studies UNIT 1 - MARKETING AQA GCSE Business Studies

CONDUCTING MARKET RESEARCH REASON 1 Indicates to businesses their target market (customers). REASON 2 Enables businesses to identify what prices customers are willing to pay for products. REASON 3 Makes businesses aware of changes in consumer’s tastes and requirements. REASON 4 Enables business to find out about their rivals (competitors) and identify the products they sell.

PRIMARY RESEARCH DEFINITION ADVANTAGES Collection of new data. Also known as field research Research is directly related to the business. Information gathered will be up-to-date. DISADVANTAGES Designing the research, gathering the information and then analysing it can be time consuming. Expensive if business employs specialist researchers.

PRIMARY RESEARCH METHODS Questionnaire Focus groups Internet research Telephone survey Door-to-door survey Customer/suppler feedback

Ringing up customers to obtain their views. TELEPHONE SURVEY Ringing up customers to obtain their views. ADVANTAGES Can call when it is convenient to you. A large number of interviews can be conducted in a short period of time. DISADVANTAGES Cannot see peoples responses. Not everyone has a telephone or are willing to answer questions.

FOCUS GROUP ADVANTAGES Can get in-depth responses. DISADVANTAGES Are small groups of people selected to give their views on a particular business issue, such as brand name, whether the business is better or worse than competitors, a proposed advert etc. ADVANTAGES Can get in-depth responses. DISADVANTAGES Small groups may not reflect all your target customers.

INTERNET RESEARCH ADVANTAGES Cheap. Quick. DISADVANTAGES Many businesses have their own website and this provides an additional route for customer feedback. It is also possible to track the number of visitors to a website, how they found the site, what search engine they used – and this sort of information can provide a useful insight into potential customers. ADVANTAGES Cheap. Quick. DISADVANTAGES May not find the views of your target audience. Not everyone has a telephone or are willing to answer questions.

Some people resent being stopped and questioned. QUESTIONNAIRE People are asked questions about a certain product. Questionnaires can be by telephone or by post as well as face-to-face. ADVANTAGES Information is taken directly from the people who are, or will be, the firms consumers. Questionnaire can help the member of the public to understand the questions. DISADVANTAGES Slow and costly. Some people resent being stopped and questioned.

Visiting people’s houses and asking them questions on certain issues. DOOR-TO-DOOR SURVEY Visiting people’s houses and asking them questions on certain issues. ADVANTAGES Can see how people react and people may be more likely to tell the truth. DISADVANTAGES Can be time-consuming.

SECONDARY RESEARCH DEFINITION ADVANTAGES Collection of data that already exists. Also known as desk research The information is cheap to obtain. The information is available immediately and there are lots of sources to choose from. DISADVANTAGES The information may be out-of-date. Information available to every other firm in the market.

SECONDARY RESEARCH METHODS Government publications Newspapers and journals Firms internal records Internet

MARKETING MIX MIX Product Price Place Promotion

PRODUCT The business must have a product that customers want, and for which they are prepared to pay for. The business may want to emphasise that the product is of a high quality, that it had particular design features, that it offers value for money, or perhaps that it will improve the consumers own image. Most importantly the business must make a profit – selling price must cover the cost of producing the product.

PRICE The business needs to know how much the customer is prepared to pay for the product, and what competitors charge. The price must also be one that enables the business to make a profit – will the price charged cover costs?

PLACE Place refers to the way in which products are distributed. Are they sold direct to customers (e.g. via the internet) or via shops? Do they come direct from the factory to the shop or are they bought by a wholesaler first? What are the stores like where they are sold?

PROMOTION The business needs to make sure that the customer knows about the new product and is encouraged to buy it. To inform customers about products, businesses use a range of methods, from word of mouth, adverts. To encourage the customer to buy the product, the business may offer a free gift, discount, or a BOGOF deal

THE RIGHT MIX WILL DEPEND ON FACTOR 1 The product: Is it distinctive? Is it a product that needs a unique design? How long does a customer expect it to last? FACTOR 2 Competitors products: What do they offer and how does it compare with what you have? FACTOR 3 Target customers: Who you are trying to sell to? How much do they earn? Why are they likely to buy the product? What do they do with their time?. FACTOR 4 Business approach: Are you trying to match what your competitors do?