1. Start-Up Market Research
AS Business Studies

2. Aims and Objectives Aim:
Understand primary and secondary research methods.
Objectives:
Define primary & secondary research
Explain different methods of research
Analyse primary and secondary research
Evaluate primary and secondary research

3. Starter What is meant by the term ‘market research’?
Why may it be important for a new business to conduct start-up market research?

4. Importance of Start-Up Market Research
It is important to understand the wants and needs of the market before starting your business, and whilst you are operating a business. No point in starting a business if there is no market demand for your product/service.

5. Primary Market Research
Data collected by the entrepreneur, or paid to be collected which does not already exist.

6. Secondary Market Research
Data already in existence that has not been collected specifically for the purposes of the entrepreneur.

7. Primary or Secondary Market Research?
Research Method
Primary
Secondary
Questionnaires: a set of questions designed to discover information relating to a product or service.
Interviews: interviews with members of the public to find out their views.
Focus Groups: in-depth discussion with a small group of consumers, which probes their feelings towards a product or service.
Telephone Survey: a series of set questions delivered over the telephone to consumers as a method of primary research.
Internet Research: Researching markets on the internet.
Supplier Feedback: gathering information from businesses which supply products and services.
Customer Feedback: formal or informal responses from customers to the product or service offered by customers.

8. Primary Research Methods
Questionnaires
Focus groups
Telephone surveys
Test marketing
Interviews

9. Secondary Research Methods
Government Reports
Market Data Reports
Yellow Pages
Mintel Reports

10. Spot the odd one out – why?

11. Primary Research – Sampling Methods
When conducting primary research like questionnaires the entrepreneur cannot ask their entire target market.
Random Sampling:
One in which each potential member of a group has an equal chance of being in the sample

12. Primary Research – Sampling Methods
Quota Sampling:
This is not random, as not everyone has an equal chance of being in it, and the results cannot be used to predict the behaviour of everyone.
Stratified Sample:
Popular with researchers as it has the benefits of being random, thus reducing bias, and is not as expensive or as difficult as full random sample.

13. Primary Research – Sampling Methods
Think, Pair, Share how each of the following may affect an entrepreneurs choice of sampling methods:
Available finance
Nature of the product
Level of risk
Target market

14. Primary Research – Sampling Methods
Available Finance
Due to start-up nature of business market research needs to be lost cost or free.
Nature of Product
Many entrepreneurs find it easier to research a physical product rather than a service.
Level of Risk
The newer the product the greater the risk – and the potential rewards!
Target Market
A clearly identified target market is easier to target in terms of sample.
Primary Research – Sampling Methods

15. Innocent Smoothies A good method of market research or not?
Should we quit our jobs and make Smoothies?
Yes No

16. AN. EV: Primary Research & Secondary Research
Read Primary market research vs. Secondary market research: a comparative analysis. Analyse the advantages and disadvantages of both primary and secondary research in two tables. Evaluate: which method is best according to the analysis? What may an entrepreneurs decision depend on?

17. AN. EV: Primary Research & Secondary Research - Plenary
Read Primary market research vs. Secondary market research: a comparative analysis. Analyse the advantages and disadvantages of both primary and secondary research in two tables. Evaluate: which method is best according to the analysis? What may an entrepreneurs decision depend on?