1. Lesson Objectives
Understand that customers needs are central to a business
Understand how to collect and interpret primary and secondary market research
Understand the differences between qualitative and quantitative research data

2. What do Customers Want? KEYWORDS Market Research Customers Needs
Primary Research
Secondary Research
Survey
Questionnaire
Focus Groups
What do Customers Want?

3. Market Research

4. Primary Research

5. Market Research Primary Research First hand information
Expensive to collect, analyse and evaluate
Can be highly focussed and relevant
Care needs to be taken with the approach and methodology to ensure accuracy
Types of question – closed – limited information gained; open – useful information but difficult to analyse

6. Secondary Research

7. External Sources Government Statistics (ONS) EU - Euro Stat
Trade publications
Commercial Data - Gallup, Mintel, etc.
Household Expenditure Survey
Magazine surveys
Other firms’ research
Research documents – publications, journals, etc.

8. Market Research Quantitative and Qualitative Information:
Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how
Qualitative – more detail – tells you why, when and how!

9. What questions would you ask to find out about a creating a new Breakfast Cereal?

10. Closed Questions eg Open Questions eg What is your age? Tick the box
Advantages of Closed-Ended Questions
Quick to answer
Easy to code
No difference between articulate and inarticulate respondents
Disadvantages of Closed-Ended Questions
Can draw misleading conclusions because of limited range of options
"It depends" where only Yes/No are given as options
Open Questions eg
What is your name?
What is your favourite colour?
Advantages of Open-Ended Questions
Greater freedom of expression
No bias due to limited response ranges
Respondent can qualify their answers
Disadvantages of Open-Ended Questions
Time consuming to code
Researcher / interviewer may misinterpret (and therefore misclassify) a response

11. Market Research Advantages of Market Research
Helps focus attention on objectives
Aids forecasting, planning and strategic development
May help to reduce risk of new product development
Communicates image, vision, etc.
Globalisation makes market information valuable (HSBC adverts!!)

12. Market Research Disadvantages of Market Research
Information only as good as the methodology used
Can be inaccurate or unreliable
Results may not be what the business wants to hear!
May stifle initiative and ‘gut feeling’
Always a problem that we may never know enough to be sure!

13. Over to You Activity Page 14
Answer questions on Over to You activity and
Test yourself questions
Create a questionnaire for a new Breakfast Cereal at least 10 questions using a variety of open and closed questions.