1. 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

2. 3.2.1 Understanding markets and customers – Market research
How would you try to discover if there is a market for this product?
3.2.1 Understanding markets and customers – Market research

3. You are passionate about the idea/product/service – is everyone else?
Why the need?
You are passionate about the idea/product/service – is everyone else?
What dilemma might an entrepreneur face when considering whether to carry out market research?

4. Quantitative research
is the gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons

5. Qualitative research
To what extent do you think quantitative data is more useful than qualitative data in informing marketing decisions?
Qualitative research is the gathering of non-statistical information that gives a company in depth insight into the reasons for human behaviour

6. Size and types of samples
Sample – a group of subjects that has been chosen from a larger group (population) for investigation.
How many people (sample size) should a small business have in a sample?
How big is the budget?
How accurate should the findings be?
How confident are you in the survey results?
The larger the sample the more accurate the results, the greater the confidence in the findings but the greater the cost of the survey.
Does market research have to be expensive?

7. types of sampling techniques
Random
each individual is chosen entirely by chance and has an equal chance of being selected
Quota
The population is first segmented into subgroups before a judgement is made in selecting respondents that are representative of that subgroup
e.g. within a sub group of women 60% may be aged 20-40, 20% and 20% 61+, the sample should represent this
Stratified
The population is first segmented into subgroups before respondents are randomly selected from within that subgroup
e.g. within a subgroup of year olds any member of the population has an equal chance of being selected

8. End Test yourself Distinguish between primary and secondary research.
Distinguish between qualitative and quantitative data.
What is meant by the term quota sampling?
State two other sampling techniques.
End

9. Discussion questions Based on what we have discussed about sampling:
Produce a list of the main benefits and drawbacks of using sampling.
Debate with your partner the following issues:
How worthwhile sampling is for different types of firms when finding out about the popularity and introduction of new products. How should each of the following sample?
Supermarket e.g. Morrisons
High-street fashion retailer e.g. Topshop
Football club e.g. Manchester United
Mobile phone firm e.g. Samsung
Model railway manufacturer e.g. Hornby
What might influence a firm when deciding on what sampling method to use?

10. Factors influencing the choice of sampling methods:
Time to complete research and make decisions
Costs involved and financial situation of the firm
Stage of life cycle for the firm and its product/services
Is it a new or existing product/firm?
Market position of the firm – Is it a mass or niche market?
Target audience and their characteristics
How focused is the target audience? Are their needs and wants very specific and different from average?
The firm’s existing knowledge of the market and customers

11. Market research plan: Activity
Scenario 1: A new boutique, premium-priced hotel setting up in the city of Cardiff.
Scenario 2: A game console manufacturer looking to investigate a range of new games to release.
Scenario 3: A fast-food restaurant considering introducing new healthier options.
Questions:
For the scenarios above discuss in pairs and answer the questions below.
What secondary data might the business use? Where might they gather it form?
What sampling method might the entrepreneur use to decide who to collect primary data from?
What research method should be used to collect the primary data?
Decide whether the entrepreneur should collect quantitative or qualitative data, or a combination of the two.
Justify your answers giving sound reasoning and demonstrating analysis.