Market research and its limitations

Market research can be… Quantitative Qualitative Most of you would have come across these terms whilst doing GCSE/BTEC Business

Quantitative (Quantity data) Involves gathering data and measuring responses Data displayed in charts. Graphs, as statistics and percentages Questionnaires written to gather numerical data – e.g. number of respondents who…

Qualitative (quality information) “We loved it.” “It really worked for my family.” “We liked the natty design and showed it to our neighbour.” Seeks to gather and explore feelings and thoughts about a product from consumers Information gathered by; Focus group discussions Interview with consumers on what they “think” about the product or service Observations of buyer behaviour (e.g. only family groups bought the squash) “I found it easy to use once I had read the manual.” “I was really pleased with the customer service in the shop.”

Limitations of market research

Watch you tube: Video 4 mins Students can fill this in using the next slide information Watch you tube: Video 4 mins

Limitations of market research Research carried out did not give enough information The data is inaccurate or misleading The data (mostly secondary ) is non-specific to the organisation Reliability of data collected- were the same questions asked of each person, was the sample big enough and reflective of the people who will use/buy the product would the same results be obtained from a different set of people validity reliability bias Validity of data collected- does it measure what it claims to measure, is it accurate? Cost effective- are the costs of carrying out the research going to be worth while? Time limitations Budget limitations Asking wrong questions in primary research gathers the wrong data Reluctance of respondents to participate in research

Task Complete the questions on the website survey sheet you have been given

Uses of ict to support market research

ICT in Market research Market research is all about the gathering and analysis of data to make decisions, computers can be used both at the gathering stage and at the analysis stage to speed up the process. Internet data gathering is very cost effective as it reaches all customers using the website, requires no staff and customers can fill it in, in their own time. Data is more likely to be reliable as it is not rushed. Click on the image to take part in the survey

Market segmentation

Market segmentation Definition: an identifiable group of individuals (or part of a market) where consumers share one (or more) characteristic or need Demographic, e.g. gender Geographic, e.g. Scotland, Wales, South of England Behavioural, based on usage or attitude to product e.g. Occasional, everyday Psychographic e.g. personality types, good with money (safe savers), or impulsive thrill seekers Religion / ethnicity e.g. Halal or kosher foods

Market segmentation - Social Class Categorises individuals according to their occupation, a business may decide to target ABC1 or DE consumers, depending on the product. A Upper class – professionals e.g. lawyers, accountants B Middle class – other professional e.g. teachers, nurses C1 Lower middle-class – skilled non-manual workers e.g. police, clerical staff C2 Skilled working class – trained skilled workers e.g. plumbers, electricians D Working class - unskilled manual workers e.g. labourers, farm workers E Unskilled/unemployed - those on state benefits e.g. pensioners, unemployed

Sample questions Go through the following sample exam questions and answer them On the slides after each question it gives you hints and tips for how to answer them The mark scheme is also given so that you can see how to achieve full marks – do not look at this until you have answered the question yourself first of all

Sample question 1 4 mark question – half the marks are for context – case study on next slide 2 marks for application 1 mark for knowledge 1 marks for analysis

The case study you need for Question 1

Sample question 2 2 mark question – no context needed, just demonstrate your knowledge and give a correct definition

Sample question 3 4 Mark question – half the marks are for context, case study on next slide 1 mark for knowledge 1 marks for analysis 2 mark for application

The case study you need for Question 3

Revisionstation revision video

Revision Video

Make sure you have key term cards for the following terms; Consumer panels Product orientation Database Qualitative research Focus groups Market orientation Quantitative research Market research Respondent Market segment Sample Primary research Socio-economic groups Secondary research

Complete the case study Complete the case study on market research ‘click and collect’ Once you have completed the case study complete the knowledge check questions at the bottom of the page This needs to be finished for homework

Extension Task - Exam practice Now attempt the exam practice questions for Topic 1 on Moodle Topic 1 was all to do with markets – mass/niche The presentation on Moodle contains a serious of exam questions, tips for how to gain marks and the mark scheme for the question Try to answer the question first and then see how many marks you would have achieved