1. Market research and its limitations

2. Market research can be…
Quantitative
Qualitative
Most of you would have come across these terms whilst doing GCSE/BTEC Business

3. Quantitative (Quantity data)
Involves gathering data and measuring responses
Data displayed in charts. Graphs, as statistics and percentages
Questionnaires written to gather numerical data – e.g. number of respondents who…

4. Qualitative (quality information)
“We loved it.”
“It really worked for my family.”
“We liked the natty design and showed it to our neighbour.”
Seeks to gather and explore feelings and thoughts about a product from consumers
Information gathered by;
Focus group discussions
Interview with consumers on what they “think” about the product or service
Observations of buyer behaviour (e.g. only family groups bought the squash)
“I found it easy to use once I had read the manual.”
“I was really pleased with the customer service in the shop.”

5. Limitations of market research

6. Watch you tube: Video 4 mins
Students can fill this in using the next slide information
Watch you tube: Video 4 mins

7. Limitations of market research
Research carried out did not give enough information
The data is inaccurate or misleading
The data (mostly secondary ) is non-specific to the organisation
Reliability of data collected- were the same questions asked of each person, was the sample big enough and reflective of the people who will use/buy the product would the same results be obtained from a different set of people
validity reliability bias
Validity of data collected- does it measure what it claims to measure, is it accurate?
Cost effective- are the costs of carrying out the research going to be worth while?
Time limitations
Budget limitations
Asking wrong questions in primary research gathers the wrong data
Reluctance of respondents to participate in research

8. Task
Complete the questions on the website survey sheet you have been given

9. Uses of ict to support market research

10. ICT in Market research
Market research is all about the gathering and analysis of data to make decisions, computers can be used both at the gathering stage and at the analysis stage to speed up the process.
Internet data gathering is very cost effective as it reaches all customers using the website, requires no staff and customers can fill it in, in their own time. Data is more likely to be reliable as it is not rushed.
Click on the image to take part in the survey

11. Market segmentation

12. Market segmentation
Definition: an identifiable group of individuals (or part of a market) where consumers share one (or more) characteristic or need
Demographic, e.g. gender
Geographic, e.g. Scotland, Wales, South of England
Behavioural, based on usage or attitude to product e.g. Occasional, everyday
Psychographic e.g. personality types, good with money (safe savers), or impulsive thrill seekers
Religion / ethnicity e.g. Halal or kosher foods

13. Market segmentation - Social Class
Categorises individuals according to their occupation, a business may decide to target ABC1 or DE consumers, depending on the product. A
Upper class – professionals e.g. lawyers, accountants B
Middle class – other professional e.g. teachers, nurses C1
Lower middle-class – skilled non-manual workers e.g. police, clerical staff C2
Skilled working class – trained skilled workers e.g. plumbers, electricians D
Working class - unskilled manual workers e.g. labourers, farm workers E
Unskilled/unemployed - those on state benefits e.g. pensioners, unemployed

14. Sample questions
Go through the following sample exam questions and answer them
On the slides after each question it gives you hints and tips for how to answer them
The mark scheme is also given so that you can see how to achieve full marks – do not look at this until you have answered the question yourself first of all

15. Sample question 1
4 mark question – half the marks are for context – case study on next slide
2 marks for application
1 mark for knowledge
1 marks for analysis

16. The case study you need for Question 1

17. Sample question 2
2 mark question – no context needed, just demonstrate your knowledge and give a correct definition

18. Sample question 3
4 Mark question – half the marks are for context, case study on next slide
1 mark for knowledge
1 marks for analysis
2 mark
for application

19. The case study you need for Question 3

20. Revisionstation revision video

21. Revision Video

22. Make sure you have key term cards for the following terms;
Consumer panels
Product orientation
Database
Qualitative research
Focus groups
Market orientation
Quantitative research
Market research
Respondent
Market segment
Sample
Primary research
Socio-economic groups
Secondary research

23. Complete the case study
Complete the case study on market research ‘click and collect’
Once you have completed the case study complete the knowledge check questions at the bottom of the page
This needs to be finished for homework

24. Extension Task - Exam practice
Now attempt the exam practice questions for Topic 1 on Moodle
Topic 1 was all to do with markets – mass/niche
The presentation on Moodle contains a serious of exam questions, tips for how to gain marks and the mark scheme for the question
Try to answer the question first and then see how many marks you would have achieved