1. Reasonable Price Good Quality Good customer service Convenient location Good Range of goods

2.  Information that comes directly from the source- eg potential customers.  You can collect this information yourself or hire someone else to gather it for you via surveys  Methods of primary research  Surveys  Questionnaires  Focus groups  Interviews  Observations

3.  Market research that's already compiled and organised for you.  Secondary research is sometimes called ‘Desk research’ as you can do it at a desk!  Examples of secondary information ◦ pamphlets, newsletters, trade publications, magazines ◦ reports and studies by government agencies, trade associations or other businesses within your industry. ◦ Other sources include YELL.COM, Internet, Local newspaper, Library (market reports)

4.  Data that has been collected can be split into 2 types:- ◦ Qualitative Data – information about opinions, judgements and attitudes. Eg finding what customers think so data about opinions on customer service, store cleanliness ◦ Quantitative Data – Data that can be interpreted in a numeric way. Eg finding out how many customers bought a certain product, data about prices, ages of customers and products bought

5. 1. Complete the worksheet to summarise all this! (by hand) 2. Make sure you have fully finished: i.Test Yourself ii.Over to You iii.Review Questions

7.  Market mapping:  how to analyse customer buying habits and preferences  how businesses can identify market segments  how businesses can map their market to set out the key features of the market they are planning to operate in and identify a market gap

8.  Ruby Jacobs was only 21 when she decided to set up her own business.  After studying Food and Catering at University she decided to open a cafe.  She had found a possible location for a cafe, just off the high street of a local parade of shops in her local area of London.  What questions should she be asking about her customers?

9. Before deciding to lease (rent) the premises for the cafe she needed to find out:- 1. Who the potential customers may be? 2. What sort of products they would like to buy? 3. What sort of price they would be prepared to pay? 4. When they would want to use the services of the café? 5. How many times they would use the café? 6. If she could identify any buying habits in her potential customers? What sort of market research should she do? Note down your market research suggestions and some possible answers to her questions above

10.  Ruby can carry out market research by …… ………………………………………………………………… ……………………………………………………………. Customer type 1Customer type 2Customer type 3 Who? Products? Price for cup of coffee? When?

11.  An identifiable group of individuals, families, businesses, or organisations, sharing one or more characteristics or needs in an otherwise homogeneous (identical) market.  Market segments generally respond in a predictable manner to a marketing or promotion offer.  Market segments may be:- age, gender, income, area, ethnicity, religious group, socio-economic group (working, upper, or lower class)

12.  Market mapping is a diagram that shows the range of your business and other competitors businesses against two features of the product or service you are offering.  Market mapping lets you identify where the product or service is best placed in the market to suit potential customer needs.  It helps you identify where there is a gap in the market.  It helps you position your product so that it meets the needs and wants of the target customers.

13.  You need to compare the products or services using 2 criteria. For example: ◦ High price v low price ◦ Basic quality v High quality ◦ Low volume v high volume ◦ Necessity v luxury ◦ Light v heavy ◦ Simple v complex ◦ Lo-tech v high-tech ◦ Young v Old

14. The diagram above shows how four local cafés are competing in terms of price and quality. The red circle identifies a gap in the market. There is a business opportunity for a new café offering standard quality products at standard prices. What sort of café should Ruby open?

15.  A GAP in the market occurs when no business is meeting the needs of the customers for a particular product.  New businesses can be very successful if the spot a gap in the market and fill it well,  Some new businesses are not successful because their products are too close to that of their competitors.

17.  One way is to identify where there are “gaps in the market” – where there are customer needs that are not being met. For example, in the chocolate bar market, Divine Chocolate (a social enterprise) successfully spotted that some consumers were prepared to pay a premium price for very high quality chocolate made from Fairtrade cocoa.Divine Chocolate  Green & Black’s exploited the opportunity to sell premium chocolate made from organic ingredients.  Both these brands successfully moved into the high quality / high price quadrant before too many competitors beat them to it.  The trick with a market map is to ensure that market research confirms whether or not there is actually any demand for a possible “gap in the market”. There may be very good reasons why consumers do not want to buy a product that might, potentially, fill a gap.

18.  Market Segment – part of a market that contains a group of buyers similar buying habits such as age or income.  Price Sensitive – when the price is very important in the decision about whether to buy or not.  Market map (also Perceptual or positioning map) – shows the range of possible positions for two features of a product, such as low to high price and low to high quality  Gap in the market – a place where no business is serving the customer needs

19. Today with Miss Watson 1. Fill in key terms in Study Book 2. Notes on market mapping in Study Book and market map for new chocolate bar With Miss Graham on Monday 1. Market Mapping Tasks 2. Cadburys Market Mapping Task With Miss Watson on Friday 1. Recap market mapping 2. Test Yourself 3. Over to you 4. Review Questions