2 M ARKETING New Topic

New
Topic
2 M ARKETING
2.1 MARKET RESEARCH
C AN YOU IDENTIFY ALL
THESE BRANDS ?
2.1 MARKET RESEARCH
2.1 C ONDUCTING M ARKET
R ESEARCH WITH L IMITED B UDGETS

In this topic you will learn about

Reasons for conducting market research

Market research methods
If you were planning to open a
clothes shop in your local area what
information would you want to know
before making important decisions?
2.1 MARKET RESEARCH
M ARKET R ESEARCH


What is marketing?

The identification, satisfying and revisiting of customer needs

Researching the market before deciding on product, price, place
and promotion
What is market research?

2.1 MARKET RESEARCH
Market research is the collection and analysis of data and
information to inform a business about its market. This could
include:

Customers

Competitors

Market place
R EASONS FOR C ONDUCTING
M ARKET R ESEARCH
Informs sales
forecasting
Part of
Business Plan
Start-up
market
research
Identifies
potential
demand
2.1 MARKET RESEARCH
Helps assess
feasibility
Lack of
experience
R EASONS FOR CONDUCTING
MARKET RESEARCH
Jasmine is a designer of unique silver and pewter rings for both men
and women. Her friends and family love her designs and believe that
she could become known as a top designer. Jasmine’s Mum has
offered to help her set up a small shop in their home town of
Bournemouth. Her Dad thinks that this is a good idea. However, he is
concerned about the number of new shops that open and close
shortly afterwards due to lack of demand. He suggests that Jasmine
should carry out some market research before opening the shop.
2.1 MARKET RESEARCH
Question time
1. What is meant by ‘market research’?
(2 marks)
2. Explain 2 reasons why Jasmine should carry out market research
before opening her shop.
(4 marks)
3. Explain 1 reason why Jasmine should look at her competitors in
the market.
(2 marks)
S TARTER
Marketing is not just a_____________, promotion and
s____________. Marketing covers many m_______
activities such as the development of a p___________,
finding out what customer might b_____ the product,
what p_____________ should be used, what
p_________ should be charged and where the product
should be s______.
Packaging / Advertising / buy / product / price / selling / sold / more
2.1 MARKET RESEARCH
M ETHODS

2.1 MARKET RESEARCH
OF MARKET RESEARCH
There are two categories of market research:

Primary market research (field research)
involves the collection of first hand data that
did not exist before. Therefore it is original
data.

Secondary market research (desk research) is
research that has already been undertaken
by another organisation and therefore
already exists.
M ETHODS
OF MARKET RESEARCH
ON A LIMITED BUDGET
Market Research
Primary
Secondary
Advantages
• specific to your needs
• up to date
• already exists
• may be compiled by
experts
• quick to access
•Can be cheap
Disadvantages
• lack of expertise
• time consuming
• results may be limited
•Expensive to do
• can be out of date
•not specific to you
Would you take part in market research on lip
balm?
2.1 MARKET RESEARCH
M ETHODS
OF MARKET RESEARCH
Telephone Surveys
A survey is a set of predetermined questions to be answered by the
respondent.
Normally questions are short and closed.
Surveys can be:
Postal
Telephone
Face–to-face
On-line
Questionnaires
A questionnaire, like a survey, is a set of predetermined questions
to be answered by the respondent.
May include open and closed questions, but primarily closed.
A relatively easy way to collect consumer opinions.
2.1 MARKET RESEARCH
M ETHODS
OF MARKET RESEARCH
ON A LIMITED BUDGET
Focus Groups
Groups of consumers who share their views and opinions in a
focussed discussion.
Provides qualitative data.
Allows for follow up questions.
2.1 MARKET RESEARCH
Why might a business choose to run a focus group rather
than a survey to collect consumer opinions?
M ETHODS
OF MARKET RESEARCH
ON A LIMITED BUDGET
Internet Research
Using information that already has been collected and is
available on the internet (secondary research).
Wide range of information freely available.
Can carry out research independently.
Examples of internet research:
www.statistics.gov.uk
www.yell.com
www.upmystreet.com
2.1 MARKET RESEARCH
How much do we really understand about the
internet?
M ARKET R ESEARCH
Jasmine has decided to take her Dad’s advice and carry out some
market research. She spoke to her Dad in more detail and he
suggested she used secondary market research due to her limited
budget. However, Jasmine is also keen to speak to potential
customers to find out their views on her designs, location and pricing.
Question time
1 What is meant by ‘secondary research’?
(2 marks)
2 Explain 2 benefits to Jasmine of using secondary market research.
(4 marks)
3 Suggest a suitable market research method for Jasmine to find out
about consumers’ opinions. Justify your answer.
(6 marks)
2.1 MARKET RESEARCH
M ARKET R ESEARCH
Work in pairs to complete the table below.
Research Method
Telephone survey
Face to face survey
Postal survey
On line survey
Supplier feedback
Focus group
Questionnaire
Customer feedback
2.1 MARKET RESEARCH
Internet Research
Advantages
Disadvantages
5 M INUTE T EST

Define marketing

Distinguish between primary and secondary market
research

What is a focus group?

State 1 advantage and 1 disadvantage of primary
market research

State 1 advantage and 1 disadvantage of secondary
market research

What is the key factor limiting the amount and type of
research a new business can conduct?
End