1. Learning Objectives At the end of this lesson, students should be able to understand: The difference between primary and secondary market research How secondary research may be used by a business to help inform its marketing decisions

2. Market Research

3. Secondary Research

4. Internal Sources Company Accounts Internal Reports and Analysis Stock Analysis Retail data - loyalty cards, till data, etc.

5. External Sources Government Statistics (ONS) EU - Euro Stat Trade publications Commercial Data - Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications, journals, etc.

6. Sampling Methods

7. Market Research Sampling Methods: Random Samples – equal chance of anyone being picked – May select those not in the target group – indiscriminate – Sample sizes may need to be large to be representative – Can be very expensive

8. Market Research Stratified or Segment Random Sampling – Samples on the basis of a representative strata or segment – Still random but more focussed – May give more relevant information – May be more cost effective

9. Market Research Quota Sampling – Again – by segment – Not randomly selected – Specific number on each segment are interviewed, etc. – May not be fully representative – Cheaper method

10. Market Research Cluster Sampling – Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population Multi-Stage Sampling – Sample selected from multi-stage sub-groups Snowball Sampling – Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

11. Primary Research

12. Market Research Primary Research – First hand information – Expensive to collect, analyse and evaluate – Can be highly focussed and relevant – Care needs to be taken with the approach and methodology to ensure accuracy – Types of question – closed – limited information gained; open – useful information but difficult to analyse

13. Market Research Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how Qualitative – more detail – tells you why, when and how!

14. Purpose

15. Market Research Advantages of Market Research – Helps focus attention on objectives – Aids forecasting, planning and strategic development – May help to reduce risk of new product development – Communicates image, vision, etc. – Globalisation makes market information valuable (HSBC adverts!!)

16. Market Research Disadvantages of Market Research – Information only as good as the methodology used – Can be inaccurate or unreliable – Results may not be what the business wants to hear! – May stifle initiative and ‘gut feeling’ – Always a problem that we may never know enough to be sure!

17. Analysis Research Data When you have completed your research – you need to analyse your results – THIS IS THE MOST IMPORTANT PART OF MARKET RESEARCH – interpreting what your research shows you about your customers Write a Report in Word about your results Make judgements about what your research shows you and apply to your business idea Interpret your graphs – quantitative dataquantitative Interpret your open questions answers – qualitative data What does all your research mean? What is important and what is not? E.g. prices or location Evaluate your questionnaire – were there any questions that you could have worded differently Were any questions ambiguous? Or Biased? Describe how your research will help you to sell your products in school

18. Different types of Data Results Qualitative Data Information about opinions, judgements and attitudes Eg customer service is very important to potential customers Quantitative Data Information that can be expressed as numbers and can be statistically analysed eg 9 out 10 cats prefer whiskers

19. Market Mapping Market Mapping – diagram that shows the range of possible positions for two features of a product eg low to high price and low to high quality Research Market Mapping for more information