Business

Management
IB Diploma Programme

DIANA ZMICEREVSKA
M G . S C . O E C . , A S S I S TA N T P R O F E S S O R O F I S M A , H E A D O F
P R O J E C T D E PA R T M E N T
 Unit 4. Marketing

4.1 Introduction to marketing and its role

4.2 Marketing planning
4.3 Sales forecasting (HL only)
4.4 Market research
4.5.Marketing mix (4P’s and 7P’s)
4.6 International marketing (HL only)
4.7 E-commerce
Market research
Market research is the process of collecting, analysing, and reporting
data related to a particular market, including data on consumption of
goods and services and on competitors’ behaviour.
Importantly, businesses use market research information to make
decisions.
Uses of market research
The purposes of market research
• To identify consumer needs and wants and consumers’ satisfaction levels and patterns in
purchase behaviour.
• To assist a business in predicting what is likely to happen in future.
• To reduce the risk of product failure.
• To measure the effectiveness of a marketing strategy.
• To provide current or the latest information regarding activity in the market.
Market research methods
•Primary market research - involves the collection of firsthand
information from the market, gathers data for the first time for a
specific purpose.
•Secondary market research - this is the collection of second-hand
information from the market. Also known as desk research, it
involves analysing data that already exists in some form.
Methods/techniques of primary
market research
 Surveys
Surveys - these are
questionnaires sent
out to a particular
target audience to
enable the researcher
to gather useful
information. Ways to
administer: by mail,
by telephone, online,
etc.
 Interviews
Interviews - a
conversation during
which the interviewer
asks the interviewee
(respondent) questions in
order to gain
information.
Focus groups
A focus group is a small number of people gathered together to talk about a particular
issue in open discussion.
Observations
Observations occur when market researchers watch and record aspects of consumer
behaviour.
Secondary market research
methods and techniques
Academic journals
Academic journals - are publications of scholarly articles written by experts.
Media articles
Media articles - include newspapers and magazines (in print or online).
Secondary market research
methods and techniques
Government publications - articles produced by the government on a wide variety of
topics.
Market analyses - commercial publications or market intelligence reports that gather
data about particular markets.
Online research can provide access to a huge range of resources including those listed
above.
Summary
The differences between qualitative
and quantitative research
Case study BM Course book
p.417-418
Sampling methods
A sample is a small group of
people selected to represent the
population or target market
under research.
Sampling is simply the process
of selecting the appropriate
sample.
Sampling methods - quota
Quota sampling - segmenting a given population into a number of groups that share
certain characteristics (mutually exclusive sub-groups) such as age or gender. Targets are
then set for the number of people who must be interviewed in each segment.
Sampling methods - random
Random sampling - in this case every member in the population has an equal chance of
being selected as part of the sample. The sample of respondents is selected randomly.
Sampling methods - convenience
Convenience sampling - groups are selected based on their easy access and proximity to
the researcher.
Summary
Sampling methods - stratified
Stratified sampling - the target population is made up of many different groups who are
subdivided into segments or strata that share similar characteristics. Members are then
chosen from each stratum to form a representative sample.
Sampling methods - cluster
Cluster sampling - an appropriate method to use when the population is geographically dispersed. This
will involve selecting a group from each region (cluster) and then taking a random sample from the
clusters.
Sampling methods - snowballing
Snowballing - a process of sampling that involves surveying the first group or individual who then
suggests other groups or individuals who could participate, and so on. Members of the initial group use
their contacts to refer to other people that they know, hence the snowball effect. It is also used when
researching expensive sophisticated products where the range of potential customers is limited.
Results from data collection
Benefits of properly collected data:
● the ability of research to answer accurately the research questions posed
● the ability to repeat and validate a particular study where needed
● increased accuracy of findings resulting in efficient use of resources
● good opportunities for other researchers to pursue areas needing further investigation
Analysing market research results
 Can the results be trusted to be relatively accurate? In other words, is the research
valid?
 Would the research give the same results if it were repeated? In other words, is the
research reliable?
◆The validity of market research refers to how accurate its findings are.
◆The reliability of market research refers to the extent to which the same results would
be received if the research was conducted again.
p.422
+Oxford p. 290 - 291
Oxford p.292 for individual
assignment