2 Aims and Objectives Aim: Understand primary and secondary research methods.Objectives:Define primary & secondary researchExplain different methods of researchAnalyse primary and secondary researchEvaluate primary and secondary research
3 Starter What is meant by the term ‘market research’? Why may it be important for a new business to conduct start-up market research?
4 Importance of Start-Up Market Research It is important to understand the wants and needs of the market before starting your business, and whilst you are operating a business. No point in starting a business if there is no market demand for your product/service.
5 Primary Market Research Data collected by the entrepreneur, or paid to be collected which does not already exist.
6 Secondary Market Research Data already in existence that has not been collected specifically for the purposes of the entrepreneur.
7 Primary or Secondary Market Research? Research MethodPrimarySecondaryQuestionnaires: a set of questions designed to discover information relating to a product or service.Interviews: interviews with members of the public to find out their views.Focus Groups: in-depth discussion with a small group of consumers, which probes their feelings towards a product or service.Telephone Survey: a series of set questions delivered over the telephone to consumers as a method of primary research.Internet Research: Researching markets on the internet.Supplier Feedback: gathering information from businesses which supply products and services.Customer Feedback: formal or informal responses from customers to the product or service offered by customers.
8 Primary Research Methods QuestionnairesFocus groupsTelephone surveysTest marketingInterviews
9 Secondary Research Methods Government ReportsMarket Data ReportsYellow PagesMintel Reports
11 Primary Research – Sampling Methods When conducting primary research like questionnaires the entrepreneur cannot ask their entire target market.Random Sampling:One in which each potential member of a group has an equal chance of being in the sample
12 Primary Research – Sampling Methods Quota Sampling:This is not random, as not everyone has an equal chance of being in it, and the results cannot be used to predict the behaviour of everyone.Stratified Sample:Popular with researchers as it has the benefits of being random, thus reducing bias, and is not as expensive or as difficult as full random sample.
13 Primary Research – Sampling Methods Think, Pair, Share how each of the following may affect an entrepreneurs choice of sampling methods:Available financeNature of the productLevel of riskTarget market
14 Primary Research – Sampling Methods Available FinanceDue to start-up nature of business market research needs to be lost cost or free.Nature of ProductMany entrepreneurs find it easier to research a physical product rather than a service.Level of RiskThe newer the product the greater the risk – and the potential rewards!Target MarketA clearly identified target market is easier to target in terms of sample.Primary Research – Sampling Methods
15 Innocent Smoothies A good method of market research or not? Should we quit our jobs and make Smoothies?YesNo
16 AN. EV: Primary Research & Secondary Research Read Primary market research vs. Secondary market research: a comparative analysis. Analyse the advantages and disadvantages of both primary and secondary research in two tables. Evaluate: which method is best according to the analysis? What may an entrepreneurs decision depend on?
17 AN. EV: Primary Research & Secondary Research - Plenary Read Primary market research vs. Secondary market research: a comparative analysis. Analyse the advantages and disadvantages of both primary and secondary research in two tables. Evaluate: which method is best according to the analysis? What may an entrepreneurs decision depend on?