2.1 conducting market research with limited budgets 2 m arketing 2.1 m arket r esearch new topic
TRANSCRIPT
2 MARKETING
2.1 MARKET RESEARCH
New Topic
CAN YOU IDENTIFY ALL THESE BRANDS?
2.1 MARKET RESEARCH
2.1 CONDUCTING MARKET RESEARCH WITH LIMITED
BUDGETS
In this topic you will learn about
Reasons for conducting market research
Market research methods
2.1 MARKET RESEARCH
If you were planning to open a clothes shop in your local area what
information would you want to know before making important decisions?
MARKET RESEARCH
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?
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
2.1 MARKET RESEARCH
REASONS FOR CONDUCTING MARKET
RESEARCH
Start-up market research
Part ofBusiness Plan
Helps assess feasibility
Identifies potential demand
Informs sales forecasting
Lack of experience
2.1 MARKET RESEARCH
REASONS FOR CONDUCTING MARKET
RESEARCH
2.1 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.
Question time1.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)
STARTER
2.1 MARKET RESEARCH
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
METHODS 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.
METHODS 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
2.1 MARKET RESEARCH
Would you take part in market research on lip balm?
2.1 MARKET RESEARCH
METHODS OF MARKET RESEARCH
Telephone SurveysA survey is a set of predetermined questions to be answered by
the respondent.Normally questions are short and closed.
Surveys can be:Postal
TelephoneFace–to-face
On-line
QuestionnairesA 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
METHODS 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.
Why might a business choose to run a focus group rather than a survey to collect consumer opinions?
2.1 MARKET RESEARCH
METHODS OF MARKET RESEARCH
ON A LIMITED BUDGET
Internet ResearchUsing 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.comwww.upmystreet.com
How much do we really understand about the internet?
MARKET RESEARCH
2.1 MARKET RESEARCH
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 time1 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)
MARKET RESEARCH
Research Method Advantages Disadvantages
Telephone survey
Face to face survey
Postal survey
On line survey
Supplier feedback
Focus group
Questionnaire
Customer feedback
Internet Research2.1 MARKET RESEARCH
Work in pairs to complete the table below.
5 MINUTE TEST
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