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

2. 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.

3. 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.

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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

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

12. MARKETING MIX
MIX
Product
Price
Place
Promotion

13. 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.

14. 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?

15. 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?

16. 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

17. 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?