Theme 1: Marketing & People This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders. 1.1 Meeting customer needs Subject content 1.1.2 Market research What students need to learn: a) Product and market orientation b) Primary and secondary market research data (quantitative and qualitative) used to: identify and anticipate customer needs and wants quantify likely demand gain insight into consumer behaviour c) Limitations of market research, sample size and bias d) Use of ICT to support market research: websites social networking databases e) Market segmentation

What relevance does this have to market research?

Have a look at the following site…. http://www.exacttarget.com/blog/th e-30-most-brilliant-social-media- campaigns-of-2014-so-far/ How do businesses use social media?

Loyalty Cards/ Databases

Market Segmentation Who is the target market here? What are the features of the customers who buy this magazine?

Segmentation, targeting and positioning Segmentation, targeting and positioning are 3 steps in a process Step 1: segment the market into groups of customers with similar characteristics Step 2: decide on what segment of the market to target Step 3: position the product on the market by identifying how it will be viewed in relation to its competitors Segmentation Targeting Positioning

Over the past five years Karen has been running a successful burger restaurant in Southampton. Now profits are steadily growing she is keen to grow her business and looking to set up two restaurants in London. She is aware that this will be a risky decision due to the diverse demographic make-up of the area and the competition she faces, however the larger customer potential will allow her to increase her profits further. To be successful Karen is aware that she needs to develop her menu to meet the demands of this new market. Describe two ways the restaurant market could be segmented. Why is it important for Karen to segment her market as she grows her restaurants into London? Justify your answer.

Questions to Evaluate Market Research Why might start up companies struggle to get accurate market research data? Why is secondary data a first step, but not a sufficient step? Why may small samples be ‘dangerous’? Why may qualitative research sometimes prove especially important?