CIE IGCSE Business Studies Ch. 11 - Market Research

Product-oriented

business whose main focus of activity is on the product itself (eg Agricultural tools, fresh foods)

Market-oriented

business which carries out market research to find out consumer wants and needs/desires BEFORE a product is developed and produced (this method better able to survive as customers usually already identified/target market or audience)

Marketing Budget

financial plan for the marketing of a product for some specified period of time. It specifies how much money is available to market the product or range, so that the Marketing department know how much they may spend

Market Research

process of gathering, analysing and interpreting information about a market

Quantitative information -(QUANTITY)

Data that is expressed in measurable numbers and figures used to analye business trends and make informed decision

Qualitative information (QUALITY)

descriptive, non-numerical data that gathers details on customer opinions, attitudes, and beliefs

Primary research (FIELD RESEARCH)

collection and collation of original data via direct contact with potential or existing customers. This is first-hand information.

Secondary research (DESK RESEARCH)

information that has already been collected and is available for use of others. Can be information from internal or external sources

Examples of Primary research (4)

questionnaires, interviews, focus group, observation

Questionnaire

a set of questions to be answered as a means of collecting data for market research

Advantages of questionnaires (4)

Detailed qualitative information, customers' opinions about the product or service can be obtained, can be carried out online, linked to prize draws

Disadvantages of questionnaires (3)

if questions are not worded correctly then information can be misleading, time, money

Advantages of interviews (2)

ability to explain any doubts about the questions, detailed information about likes and dislikes about the product

Disadvantages of interviews (2)

Biased by the interviewer, time consuming and expensive

Sample

group of people who are selected to respond to market research exercise

Random Sample

when people are selected at random as a source of information for market research

Quota Sample

when people are selected on the basis of certain characteristics (age...) as a source of information for market research

Focus group

a group of people who are representative of a target market

Advantages of focus groups (1)

Detailed information about customers' opinions

Disadvantages of focus groups

time consuming, expensive and biased

Three types of observation

recording, watching, audits

Advantages of observation

Inexpensive way of gathering data

Disadvantages of observation

basic figures are obtained

What affects the accuracy of market research data (4)

age of data, bias of articles, size of sample, who carries out the research initially

Target makret

the overall group of people a business is trying to reach through its marketing efforts