Chapter 11 – Market Research

Unit 3 - Marketing
Marketing & Market Research
 What is marketing?
 Marketing is about 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 collecting, recording and analyzing data
about customers & competitors

2.1 Market Research

Why is market research needed?
 What feature of my product do people like or dislike? What packaging would be suitable
(PRODUCT)
Why is market research needed?
 What price will they prepared to pay? (PRICE..??)
Why is market research needed?
 How should I inform potential customers to make them willing to
buy my product (Advertisement..??)

 How can I increase sales to customers? (PROMOTION..??)

Why is market research needed?
 Where would they most likely buy my product? (PLACE..??)
Why is market research needed?
 What type of customer would buy my product?
 (Market segmentation .??)
Why is market research needed?
 What is the competition like?
Can you identify all these brands?
Starter
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

Reasons for Conducting Market Research

Get to know Part of

customers preferences Business Plan
& change in it

Market
Research Overcome Lack of
experience
Identifies
potential
Demand (Sales)
Helps deciding 4 P’s

2.1 Market Research

Reasons 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.

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)
2.1 Market Research
2 Methods of doing Market Research
 There are two ways to do market research:

 Primary market research (field research) involves

the collection of first hand data from potential
customers
 It can be conducted by questionnaires, surveys,
interviews & focus groups

 Secondary market research (desk research) is

research that has already been undertaken by
another organisation or department and therefore
already exists. Second hand information.
 Available through internet, newspapers, business
reports etc.
Types of Primary Research
Vocab of Primary Market Research
SAMPLE: Number of respondents in any primary market
research activity
Focus Groups
When data is collected from a specific group of people
repeatedly, through follow up questions. This is called Focus
group
Surveys can be:
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
Presentation of Market Research Data
Can be through Pie chart, bar chart & line graph
2.1 Market Research
Methods of Secondary market research
 Internal (from different departments of business itself)
 External ….from
 Government publications
 Research agencies
 Reports and data from other businesses
 Newspapers/magazines
 Internet
Methods of market research
on a limited budget
Market Primary Secondary
Research

Advantages • specific to business needs • already exists

• up to date • may be compiled by experts
•More reliable and confidential • cheaper and less time consuming

Disadvantages • lack of expertise • can be out of date

• time consuming •not specific to business
•Expensive to do • may be misleading

Would you take part in market research on lip

balm?
2.1 Market Research
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 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

Market Research

Work in pairs to complete the table below.

Research Method Advantages Disadvantages

Telephone survey
Face to face survey
Postal survey
On line survey
Supplier feedback
Focus group
Questionnaire
Customer feedback
Internet Research

2.1 Market Research

5 Minute Test

 Define marketing & market research

 Distinguish between primary and secondary market
research
 What is a focus group?
 Define Sample
 State 1 advantage and 1 disadvantage of primary market
research
 State 1 advantage and 1 disadvantage of secondary
market research
Types of Information

Quantitative Information Qualitative Information

 How much sport shoes  Why do women buy more
were sold in December? of my product than men?

Quantity Opinion / Judgment

Two types of market research data

Quantitative Data Qualitative Data

 When numerical data  When information about
(numbers) is collected consumers behavior,
through market research. likings and preferences is
 Ex; age, incomes, heights collected
 Ex; color of car,
of people
flavor of ice-cream
The Stages in Primary Research
Purpose of the Research

Suitable Method of Research

Sample Size & People to Ask

Carry out the Research

Collate Data & Analyze Results

Report Findings
 Making a Questionnaire for market
research
 Keep sample size,
time and place in
mind
 Keep the questions
short and clear.
 Add more closed
questions
 12 questions as a
“rule of thumb”
Presentations of Market Research Data
• Bar Chart

• Pie Chart

• Line Graph

• Table/ Tally chart

• pictogram
Assessments

• Do Activity 11.1 from text book (page 162)

• Do Case Study 1 & 2 from exam style questions

at chapter end

• Conduct a market research Activity and present

in the class (Synopsis will be provided) .. Due by
mid October