Transcript Market Research - Brighouse High School

Market Research
Market research
Market research is the collection of information
or data to better understand your customers and
what is happening in the market place.
A firm's marketing department needs to know
about economic trends, as well as consumers'
views.
Based on this information, they can put together a
marketing plan, which will meet their own needs as
well as those of their consumers.
Market Research
The information required will depend on the
product or service being offered and may
include the following:
• Personal factors, such as age, gender,
culture, occupation, income, family size,
lifestyle and leisure and activities.
• Location
• Attitude to price
• The products and services customers
currently use
• The potential market size
Types of research
There are two general types of research:
• Primary or field research
• Secondary or desk research
Use the internet to find a definition of the
two types of research.
Primary or field
research
Obtaining new data for a specific purpose.
 The marketing department of a firm or a specialist
research organisation can provide this.
Typically, the data is gathered by face-to-face
interviews, by telephone or by post, using
questionnaires. This is called a survey.
Sometimes potential consumers are asked to test
products, and their responses are recorded.
Primary or field
research
Primary research has the advantage that the firm
itself has control over the whole process.
The firm decide:
•What information they want to collect
•What questions to ask
•Who they ask
The disadvantages are that it takes longer, and costs
more.
Secondary or desk
research
This is the use of existing data
that has already been collected.
It can be anything from a company's own sales
statistics to Department of Trade and Industry
reports.
Other secondary sources of information include
journals, company reports, government statistics,
and surveys published by research organisations.
Secondary or desk
research
•Traditionally, these have been paper-based, but
more and more information is now available on CDROM or on-line through the Internet.
•Desk research has the advantages of being cheaper
and quicker than field research.
•The disadvantages are not knowing if the findings
are accurate, or how relevant they will be to your
product.
Task 1
You are about to start the first part of your report.
Using the definitions you researched earlier and the
information provided above. Describe each type of market
research and explain the advantages and disadvantages.
Now I want you to write a paragraph on the types of
primary and secondary research you could carry out for
your own business and the information you would like to
find out. (M1)
The best methods would be questionnaire, internet research
and you can pick the third
Task 1 – Help Sheet
Title - Market Research
Use the Power point slides to help you – DO NOT COPY MY
SLIDES
Make sure you answer the questions in full sentences/paragraphs NOT
one-word answers and you MUST relate these questions to your
company!
1. Describe the two types of Market Research.
2. What are the different methods of market research? (Face to face)
3. What are the advantages and disadvantages of each type of market
research?
4. Explain what types of Primary and Secondary Research YOUR
company could carry out – just choose three types. (M1)
5. What information would you like to find out about your potential
customers and how will it help you? Remember this information is
going to be used to help you set up your business so think carefully
about it.
Merit 1 – Help
What do I need to do to get a merit?
1.
You must in detail explain the methods of market research that would be
best for you to carry out for your business i.e. Questionnaire
2.
Then you must state why that method is going to be best and explain how
it is going to help you find the best information out about your target
market.
3.
You must also include the advantages of the method.
Example – By using a questionnaire I am able to select the questions that best fit
my business needs. I am able to ask specific questions such as; How much
would you spend on a bracelet? How much do you earn? I can then use
this information to select an appropriate price for my products that I know
my customers can afford. This makes a questionnaire the most appropriate
method of primary research for my business. However I must also
consider the disadvantages of this method it can be very expensive and
time consuming and as a new business I don’t have much money.
Task 2 – Part 1
Now that you know all about market research we
are going to have ago ourselves for our
businesses!
• We are going to produce a questionnaire for our
own businesses to find out about our customers
and what they want.
• We can then use this information to improve our
business.
What type of research are we doing if we produce a
questionnaire?
Your Questionnaire
Methods of collecting
What to collect?
data?
• Who is your target
market
• Question and Tally
– Male, female, old, young,
• Longer response Questions
middle age, rich, poor?
• Multiple Choice
• What do they think of
your business idea?
Who are you going to ask?
• How much would they be
prepared to pay in your
shop?
How many Questions? (10)
Plan your questionnaire
in draft
Primary Research
Homework
• You must print out your
questionnaires and get people inside
and out side of lesson to fill them in
(Family and friends)
• Don’t ask lots of similar people!!
What did we find out?
Group Discussion
Use the information that you collected from
your questionnaire to tell your partner
what you found out?
Will this information make you change any
elements of your business?
How useful did you find your research? Could
you of asked better questions? Or changed
your questionnaire to make it better?
Task 2 – Part 2
You are now going to write up the findings from your
primary research.
1. In your report started earlier you can now write a small
paragraph to say what you did!
2. Insert a copy of your questionnaire.
3. Explain why you asked these questions?
4. Now tell me what you found out? (Analyse at least 4
questions)
5. Has the information you gathered changed how you will
plan your business or confirmed anything?
6. Could you have made your questionnaire better in any
way?
Task 2 - Example
I produced a questionnaire to ask people about….. This
helped me to find out about my potential customers
wants and needs. I can then use this to……
I asked these questions because I wanted
to find out….
From my questionnaire I can see that 75% of my customers
will be female. I now know that I am better stocking more
female jewellery than male.... This is because it is mainly
females that purchase these kind of items. Or males buying
for females.
25%
boys
You can produce graphs in Excel
Girls
75%
Competition
Very few businesses operate without some form of
competition. If any of your competitors are better at
satisfying customers than your business you could be in
trouble. For that reason, businesses need to know as
much a they can about their competitors, and their
operations.
Competitor Research
• Competitor research aims to identify
who your main competitors are, where
they are located, their products,
prices and how they promote
themselves
WWW.YELL.COM
• Using the worksheet and
www.yell.com, find out all you can
about your competitors.
Competition
Research 4 competitors in your local area. For
each competitor find out the following.
• Where is the competitor located?
• What are their products/services and how
do they compare to yours?
• What prices do they charge?
• What is their customer service package?
• What is their Unique Selling Point?
Use the worksheet to help you also
Write Up
How has your research helped you to
identify the best location for your
business?
Has your research helped you to
identify anything else you can offer
or change within your business.
Social Trends
As well as the research you have done we can also look at
data collected by the government on social trends. Looking
at Social trends tells you about what is happening overall in
the UK, how people live, what they do, changes in society
etc
– Disadvantages: secondary research so it could be
inaccurate/bias. You don’t get to set the questions so
the data might not be exactly what you want
– Target Market: identify if my target market is growing
(more OAPs in the uk), what my target market do with
their time, how much money they have
– Useful: Gives an overall picture helps with…
Social Trends
Household Income and Age
Looking at the top table you
can see the income of low and
high earners. The average income
is £30000 a year.
The bottom table shows the
spread of age groups over the years.
You can use this information to
help decide if your business is a
good idea and if people will be
interested.
Social Trends Task 4
• Use the website to look at three social trends
that you think might have an influence on your
business.
• Explain the social trend and input the graph.
• Then explain how it may influence your business?
http://www.statistics.gov.uk/glance/uk-snapshots.asp