Presentation on theme: "Unit 3 Assignment 2 P3, P4, M2, D2 BTEC Business Level 3."— Presentation transcript:
1 Unit 3 Assignment 2P3, P4, M2, D2BTEC Business Level 3
2 What is Market Research? Define Market Research.Marketing research – the systematic gathering, recording and analysis of data about issues relating to marketing products and services.
3 Market ResearchOrganisations should undertake secondary research first as this research is already available, cheaper and quicker to obtain than primary research.Both types of research can be internal and external.
4 Primary and Secondary Research Primary research is carried out to answer questions that are beyond the scope of secondary research.Secondary research uses data and information that has been collected before either by the organisation or another organisation.
5 Primary Research Observations Experimentation Surveys E-marketing Focus GroupsPanelsField Trials
6 Secondary Research Secondary research is important because: It may answer questions quickly and cheaplyCould assist in designing primary researchShould enable research to interpret primary research more accuratelyCould be used as comparative dataMay provide evidence that cannot be collected by primary research
7 Secondary ResearchSecondary research can be obtained in a variety of ways.Internal data is produced on a day-to-day basis including;EPOSLoyalty schemesSalesWebsite statisticsE-transaction recordsAccounting recordsReports from sales staff
9 Qualitative and Quantitative Research Qualitative research is subjective and often open ended.Quantitative research relates to numbers and figures and can be analysed and put into graphs. This information often includes sales data, market values, but can include responses from customers.
10 QuantitativeQuantitative research produces numbers and figures such as the number or percentage of customer who use a service.Quantitative research can be used to:Measure products and sales week by weekTrack prices across a variety of retailers and brandsEstimate market share of competing brandsEstimate market and segment size
11 QualitativeProvides data on why people buy- what motivates them to buy – or their impression of products, services or advertisements.Qualitative research can be used to;Investigate consumer attitudes towards an organisationAscertain consumer reactions to change in priceAscertain information about consumer preferences lifestyles and aspirations.
12 Quantitative Qualitative ObjectiveSubjectiveResearch questions: How Many? What percentage?Research questions: What? Why?Tests theoryDevelops theoryFocus is concise and narrowFocus is complex and broadMeasurableInterpretiveBasic element of analysis is numbersBasic element of analysis is wording/ideasReasoning is logical and deductive (makes conclusions)Reasoning is dialectic (involving opinions) and inductive (leading)Establishes relationships, causationDescribes meaning and discoveryHighly controlled setting: experimental setting (outcome oriented)Flexible approach: natural setting (process orientated)
13 Activity: Quantitative or qualitative he following statements quantitative or qualitativeQuantitativeQualitativeBothNinety-five per cent of teenagers use the internet.The older generation worry about their retirement, as they perceive a lower income will have a detrimental effect on their lifestyle.Research shows that the police believe CCTV is an excellent deterrent against street crime because they find that it discourages potential criminals. Eighty-five per cent do believe it is a useful tool when used responsibly.One in three people in the UK own a pet.
14 Uses of Market Research Market Research can be used for a variety of reasons, the business will decide on the most appropriate method of research based upon the information they wish to find out.Research can;Effectively measure progressMeasure the awareness of a productInform marketing for the futureIdentify strong or weak sales
15 Limitations of market research Cost - will it be cost effective?Effectiveness - is it the most appropriate method?Validity – was a large enough sample taken?Reliability – was the research conducted in similar conditions?
16 P3- M2- Task Introduction- what is market research? Describe the following key terms: primary research (give examples), secondary research (give examples) , quantitative data, qualitative data.Choose from one of the case studies- JD sport, Kelloggs,, Tesco (on the shared area)Describe the methods of market research that your chosen business uses, what they use it for and the advantages and limitations of these methods. (use the table on the next slide)Explain how the methods chosen help the business to plan their development. e.g. McDonalds use sales figures (primary research) to identify trends in products sold, this can then help the business to develop the product or decide when to advertise.E.g. McFlurrys sell more in the summer therefore McDonalds should focus their advertising fro McFlurrys in the summer.
17 JD Sport Market Research Method and usePrimary/SecondaryQualitative/QuantitativeLimitationsExit SurveysShopping BagOn-site field researchFocus GroupsDepth InterviewsGovernment CensusGeo-demographic dataCommercial market research reports
18 Kelloggs Market Research Method and usePrimary/SecondaryQualitative/QuantitativeLimitationsMintel and Datamonitor (S1)Focus Groups (S2)Survey (S3)Home Usage Test (S4)Questionnaire (s4)
19 Coca Cola Market Research Method and usePrimary/SecondaryQualitative/QuantitativeLimitationsFocus GroupsIn Depth interviewsFace to face interviewsTelephone interviewsInternet InterviewsTest sampleEPOS data
20 D2- Make recommendations For each method of research used, make three justified recommendations for improving the validity of research.For your chosen business you need to be critical of the market research the business carries out. Consider how the business can improve the validity of the research including; sample size, more specific questioning.