IGCSE Y10 Business Studies, Chapter 11 Market Research

Types of - Observation

- Audits - Watching - Recording

Disadvantages of questionnaires

- Collating results and analysing the responses also takes a lot of time. - It may have inaccurate feedback when there is a confusing or complicated question - There is a possibility of bias as there can be leading questions or double-barreled questions, time-consuming method, open-ended questions - Expensive if face-to-face because you may have to pay to the people or the agency who are getting it done for the company - Time-consuming method if questions are open-ended - Gives incomplete information if question is not asked on a topic

How can we get accurate and reliable data from market research?

- If the sample was taken carefully chosen, it helps - Questions asked in a questionnaire must be made to get honest feedback - Select sample suitably- Use quota sample as far as possible if product is specific to age, sex and gender - The size of the sample- if small, research is cheaper but less accurate. If sample is big, results are more accurate but expensive - Questions- how well they are made to avoid misinterpretation - Who carried out the research- whether primary or secondary? - Bias- articles in newspaper have their own opinions and leave out information not relevant to them, and create incomplete picture - Age of the information - if information is old, it will not be useful to use it for our market research .

Types of Interviews

- Individual - Group

Ways to do Secondary research

- Internal resources - External resources

Types of questionnaires

- Postal -Telephone - Face-to- face - Internet

Methods of market research: Internal resources for secondary research can be obtained from

- Pricing data - Finance department - Customer records - Sales records - Public relations personnel

Types of information available to the cutomer

- Quantitative information - which answers (tells the customer) questions about the quantity of something - Qualitative information -which answers (tells the customer) questions where an opinion or judgement is necessary

Ways to do Primary research (field research)

- Questionaires - Interviews - Observation - Focus groups

Disadvantages of Interview

- The interviewer can influence the interviewee even by mistake and the results can go wrong - Interviews are take a long time and are expensive to carry out

Methods of market research: Secondary resources (desk research)for secondary research can be obtained from

- Trade and employer associations - Research reports - Newspapers - Special trade Journals - Special trade journals - Media - Market research agencies' report - Internet - Government reports and statistics

Describe the process of Primary Research?

- What is the purpose of the market research? - Which is the most suitable method of collecting data? - Identify target group of consumers and respondents - Set sample size - Carry out research - Collate data and analyse results - research report-conclusions based on results - Actions based on findings

What type of information must a business collect for marketing and why?

- Whether customers will buy the product - How often customers will buy the product - The price that customers are willing to pay - The type of customers interested in the product - Where the product should be sold - Competition etc.

Identify and explain the factors on which accuracy of market research data depends

-How carefully the sample was drawn up -Wording of the questions -Sample selected -Size of the sample -Why was the research carried out -Bias -Age of information

Advantages of questionnaires

-Information can be used for advertising , to make changes to product, for the market, price of the product, sales practices, -It is an easy way to reach a large group of respondents - easy to access, especially in case of online surveys. Survey can be linked to prizes or incentives of questionnaires.It encourages resppndents to fill them. -It is method that gives direct information about the customers - It provides relevant data- based on facts -You can get opinions which matter -Gather detailed information

Advantages of Interview

-The interviewer is able to explain to the interviewee any questions that the interviewee does not understand -Detailed information about likes and dislikes of the interviewee can be known by interview

Types of data presentation

-a table or a tally chart -a chart -a graph

Disadvantage of focus group

It can take a very long time, can be expensive, and can be biased if people are loyal or hate a product that they are testing or using.

Advantage of focus groups

It helps to develop a product better and its sales. We can get detailed information about consumers' opinions.

Product Orientated business

It is a busienss whose main focus of activity is on the product itself.

Market Orientated business

It is a business which carries out market research to find out consumer wants before a product is developed and produced.

A marketing budget

It is a financial plan for the marketing of a product or product range for some specified period of time. It specifies how much money is available to market the product or range so that the Marketing department know how much they may spend.

A questionnaire

It is a set of questions to be answered as a means of collecting data for market research.

A focus group

It is an informal small group discussion to discover opinions and attitudes.

Advantages of Observation

It is not an expensive method to gather information

Primary research

It is the collection and the collation of original data via direct contact with potential or existing customers, who are your respondents. It is also called primary survey.

A sample

It is the group of people who are selected to respond to a market research exercise, such as a questionnaires.

Market research

It is the process of gathering , analysing , and interpreting information about a market.

Secondary research

It is the use of information that has already been collected and available for use by others.

A random sample

It is when people are selected at random as a source of information for market research. - Every member of the population has a chance of being selected equally.

A quota sample

It is when people are selected on the basis of certain characteristics (such as age, gender, or income) as a source of information for market research. - For example, if views of young people on chocolate drinks are needed to find out where to launch a chocolate drink, then the focus sample could look closely at 5- 30year olds and be divided into 5-10. 10-15. 15-20. 20-25. And 25-30 year old age groups to give an accurate information on users of chocolate powder.

How to decide what kind of market research should be done to launch a product?

Make sure you look at the product and logically think of a way that suits it.

Explain Observation method

Recording - recording using instruments like meters to find what is being done in that field Watching - counting footfall , how many types of vehicles, or types of people going into a shop, or coming out of a mall after buying a certain product. Audits - Example-: counting stock to see how much of the product is sold

Disadvantages of observation

The information is just basic- numbers, types of people , names of products used, but it does not give reasons for consumers' choices.

Explain the advantages of external sources of information

These can be many more than internal sources - It is mostly of general nature. Examples of External sources: - Government statistics- can get this in all countries . - Information about age and population is easy to get - Newspapers -useful articles, and trends of customers choices, and general state of economy in a region. Newspapers also carry vital forecasts if you are trying to know if a - Trade association - for ex: agricultural association that gives a lot of agricultural information; sports association that gives latest products, endorsements, changes in the sports in the country or outside. - Market research agencies- they carry out research for the company ; sometimes can be expensive if detailed information is needed. - Internet- easy to get information, govt. - - Newspapers, but must be careful to use websites that are reliable , can be trusted.