Unit 2 GCSE Business Communication Systems Market Research

Learning Outcomes Students should be able to: demonstrate knowledge and understanding of the different methods of market research analyse and evaluate the different methods of market research recommend the most suitable method for particular circumstance analyse the impact digital technology has on market research process Images © thinkstockphotos.co.uk

Paired Activity (10 minutes) In pairs ….. Brainstorm how you think business obtain research on their products and customers…. 495193237 Images © thinkstockphotos.co.uk

Marketing “The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better informed decision-making.” The Chartered Institute of Marketing (CIM) 200543730-001 Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Methods of Research There are two methods of market research: Primary/Field Research Secondary/Desk Research 510591456 Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Primary Research Primary research is also known as ‘field research’. Primary research involves collecting new information by making direct contact with consumers. 510591456 Images © thinkstockphotos.co.uk

Examples of Primary Research Questionnaires - face to face, postal, telephone or online Interview Observation Consumer Panel 510591456 Images © thinkstockphotos.co.uk

Primary Research Advantages Information is obtained directly from the business customers, staff etc If the person doesn’t understand a question etc it can be explained by the questioner As data is obtained from the source it is more reliable It is up-to-date and collected specifically for the purpose 639066688 Images © thinkstockphotos.co.uk

Primary Research Disadvantages Inaccurate – people may not give accurate answers eg they may say they will buy something when they will not Time and money – to design the primary research, carry it out and analyse the data 639066688 Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Secondary Research Secondary research is also known as ‘desk research’. Secondary research is the collection of data which already exists. 510591456 Images © thinkstockphotos.co.uk

Examples of Secondary Research Newspaper / magazines Public Libraries Internet Government publications Data collected by another business Statistics 510591456 Images © thinkstockphotos.co.uk

Secondary Research Advantages Information is cheaper to obtain as it has already been collected Information is available immediately If taken from a reliable source the information should be reasonably accurate The data available covers a wide range of sources 153579434 Images © thinkstockphotos.co.uk

Secondary Research Disadvantages The data is unlikely to have been collected for exactly the same purpose as the business requires so it may not meet the business’s direct needs Information may be out-of-date depending on when it was collected Information is available to every other business 153579434 Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Class Activity Identify which type of research you could carried out for the following scenarios:- A launch of a new product To find out whether customers liked the taste of new product or not To find out what your competitors are doing To introduce a website for your business To find out what customers think of your product To gather statistical information on your product 611747524 Images © thinkstockphotos.co.uk

Impact of Digital Technology on Market Research Market research has developed considerably through the use of digital technology. It has a significant impact on market research in both positive and, potentially, not so positive ways. Technology has radically changed market research. Paper surveys in many cases are now replaced with robust, huge online surveys that provide instant feedback. Conducting market research used to be time-consuming, expensive and now it is instant and convenient. With the use of smart phones and social media business can collect information in real time which is much more relevant for their business. This allows businesses the opportunity to react more quickly to customers opinions. Social media monitoring customer panels, brand online communities, online focus groups, co-creation, crowd sourcing, web usability… these are just some of the new research techniques and applications that have recently evolved alongside the social media revolution. 641600742 Images © thinkstockphotos.co.uk

Market Research Using Digital Technology Access to internet on a mobile device has led to much more market research and given that so many people have a mobile device, market research is being gathered constantly. Market research can be gathered by the following means; Social media - all social media provides feedback which can affect reputations and brand awareness. Mobile devices such as smartphones and tablets provide great market research – e.g trip advisor app can detect where you are and offer choices for restaurants or trips. This information can then be used for market research purposes. Wearable tech-provide instant and real time feedback on activity which can used for market research purposes- e.g. sat nav , go pros, fit bits . Passive tracking via mobile, tablets, laptops, desktop, smart TVs mean that consumer habits and trends can be identified and used for market research. Online focus groups / surveys / social media monitoring etc 629735488 Images © thinkstockphotos.co.uk

Digital Technology in Market Research ADVANTAGES Conduct market research more easily through social media monitoring Less time / cost More convenient No interviewer - good for sensitive questions Using technology allows you to interact with people across wide geographic area Questionnaires can be more easily filled in by using a variety of digital methods with the results more easily gathered by the business. Technology gives more choice and options for when, where, and how to research different markets Feedback and results can be processed quicker e.g. Google docs or survey monkey 614341238 Images © thinkstockphotos.co.uk

Digital Technology in Market Research DISADVANTAGES Limited sampling and respondent availability.  Certain populations are less likely to have internet access and to respond to online questionnaires.  Possible cooperation problems.  Users today are constantly bombarded by messages and can easily delete your advances. No interviewer.  A lack of a trained interviewer to clarify and probe can possibly lead to less reliable data. The downside, though, is that ‘online research’ can give the false impression that it is as statistically reliable as traditional research. All research has an element of uncertainty attached to it but research from digital technologies cannot be certain of a respondents profile Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Pupil Activity Working individually complete the following past paper questions: 2012 Question 3a 2013 Question 3a 2014 Question 3d 2015 Question 3a 2016 Question 2a 635753642 Images © thinkstockphotos.co.uk

Learning Check Can you: demonstrate knowledge and understanding of the different methods of market research primary secondary analyse and evaluate the different methods of market research Questionnaire Interview Observation Consumer Panel Newspaper / magazine Public libraries Internet Government publications Data collected by another business Statistics recommend the most suitable method for particular circumstance analyse the impact digital technology has on market research process Images © thinkstockphotos.co.uk