2. Starter What is meant by a dynamic market? (2 marks)
What is meant by market orientation? (2 marks)
Calculate the market share for ASDA (2 marks)

3. From the specification
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

4. Lesson Objectives
To be able to identify uses for primary and secondary market research data
To be able to explain limitations of market research
To be able to answer sample exam questions based on the topic area

5. Key Words Qualitative data Quantitative data Product orientation
Market orientation
Primary market research
Secondary market research
Focus on:
Consumer behaviour
Understanding/predicting customers’ needs and wants
Customer opinions
Demand
Decision making

6. Don’t Forget!
Accountancy Event
Wednesday 18th November
3pm

7. Are you interested in getting a mentor this year?
Mentor Scheme!
Are you interested in getting a mentor this year?
Are you interested in a career:
Law
Accounting
Business
Not sure?

8. Primary and secondary research

9. Benefits of conducting Market Research
Think, pair square

10. Benefits to a business of researching their market
For decision making, reduces risk and cost of making poor decisions
To develop a marketing plan based on data gathered about the 4Ps (e.g. where the best place to sell is to reach the target audience)
To react to and prepare for changes in the market (See the wall decals and frozen dress up outfit)
To become market orientated

11. What is a primary research?
Primary research is original data gathered by the researcher
The information does not yet exist, so it could not be found on the Internet, the business website or anywhere else
This is brand new data which the business will gather about their product or service
They will use this data to make specific decisions about the business; perhaps a new product or a new market

12. Primary research methods
Questionnaires (surveys)
Interviews
Observation
Loyalty cards
Focus groups
Consumer panels
Test marketing
Can include amongst this list feedback from websites. For example when taking out car insurance after you have spoken to an operative they will text you a short survey on how you rated the service. The operative if they get 10/10 receives a scratch card where they can win prizes so its worth them being extra nice to customers on the phone.

13. Primary research - Survey
Primary research may also include a survey of customers who use the business. Work out what questions you want to ask first
A business can gather quantitative (numbers) and qualitative data in this method
It can also be used to measure customer satisfaction – giving the business a clear idea of where to imporve

14. Primary research – interview
A primary research team may carry out interviews. Either with the owner, with customers or with suppliers.
This will gauge reactions to new tastes or ideas that the business is having
Because it is primary research this will be very specific to the needs of the company – where secondary research will just be general

15. Primary research - Observation
A business may choose to gather data from observation of buyer behaviour
Do customers shop alone or in groups?
Do customers notice carefully placed promotions?
What route do customers take round a store?

16. Primary research – Loyalty cards
Purchases on store cards can be used to track consumer buyer behaviour and further micro market to customers specific offers. Because the offers are well targeted customers are more likely to take up any promotions. This makes the marketing very cost effective.
Other loyalty cards (like a card stamp for a coffee) act as incentive for customers to return. Useful for repeat business, but not research as you do not get the customer details for these sorts of cards.
Photo – authors own

17. Primary research – focus group
A group of target market demographic respondents are chosen to take part in a product trial.
They may use the product over time and then get together in a group to discuss their thoughts about the product
This gives the business very specific qualitative information about how customers relate and “feel” about the product.

18. Primary research – consumer panel
This is a group of experts who have been selected by an agency to answer a series of responses to questions about a product or service.
These are usually independent experts rather than being members of the general public
The panel may carry out their own research into the needs of the target consumer, they look at issues through the eyes of a consumer

19. Primary research - test marketing
A business may invent, produce or buy in a new product.
All staff in the business may agree that these are good products, but they need to know if the wider public will buy them in the quantity they need to break even and make a profit.
Therefore the product is offered to a carefully chosen sample, and based on the sample’s reactions the product will either be launched full scale or scrapped.*
* Adapted from

20. Secondary research methods
Annual reports
Internal data
Government Sources
News
Trade Journals
Specialist organisations’ publications
EU and International sources

21. Secondary research – annual reports
It may be useful for a business to look at their previous annual reports or even those of their competitors
An annual report is required if a business is a limited company or a plc
It will have such information as balance sheet and profit and loss statement
An annual report gives investors a good idea about the financial health of the business, so they can decide whether or not to risk investing
See example report from M&S

22. Secondary research – internal data
A business may have collected a wealth of data over a number of years of trading
Sales figures are very useful for forecasting future sales
The business May have built up a database of loyal customers who can be targeted with future campaigns and promotional offers

23. Secondary research – government sources
Office of national statistics (ONS) is very useful demographic information and data on the market or industry that the business is in.
Information can be used to make decisions about expanding overseas for example.
DBIOS Department for business, innovation and skills has information on exporting and grants

24. Secondary research - news
If a business is considering launching a new product or even looking for new markets for the old product, they may turn to the news media for help.
For example a handbag manufacturer would be very interested in this video from the bbc news business website
Click the image to start the video – Internet connection required

25. Secondary research – trade journals
Trade journals cater to a very specialist market
Information on competitor activity such as promotions
News specific to the industry
Helps small businesses stay in touch with trends in the market
E.g. Architects Journal

26. Secondary research – specialist organisations’ publications
Mintel trends and reports – Mintel has a global team of trend analysts constantly assessing change in culture, economy and society.
Reports cost £1,000 - £3,000
Below is from the website and outline how the secondary data can be used:
“Where you can turn to stimulate creative thought
Which new demographics and markets you can reach
How consumer choices and behaviours are changing – and why
What you can do to capitalise on change and get to market first
How you can better engage your customers”
Link takes you to sample reports which are free to download, but you will need to invent an to get to them.

27. Secondary research – EU and international sources
Eurostat contains many useful statistics on Europe. Could be used by a business looking to expand into European markets.
Infographics help businesses to visualise large amounts of data easily.
Possible answer – if the business was looking to import or export their products abroad.
WTO or world trade organisation (PDF here) works at lowering trade barriers, tariffs and quotas between countries.
IMF or international monetary fund is an organisation of 188 countries who work to foster global monetary cooperation and reduce world poverty amongst other functions.
How would a business use this data? In what circumstances would a UK business need this type of secondary research?

28. 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…

29. 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.”

30. Glossary
Qualitative data; data gathered that is numerical such as % of customers who buy more than once a week
Quantitative data; non numerical data such as how customers use the product
Product orientation; to sell products and services that the business wants to produce
Market orientation; to sell products or services based on customer needs and wants
Primary market research; information which has to be gathered
Secondary market research; information which already exists
Market segmentation; a whole market can be divided into sections called segments

31. Homework
Review this lesson and follow all of the hyperlinks and watch the videos.