Market Research GCSE Business Studies Definitions Marketing is

Market Research GCSE Business Studies

Definitions • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. • Market Research The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better informed decision-making. CIM's official definitions

Methods • There are two methods of market research: – Primary/Field Research - involves collecting new information by making direct contact with consumers e. g. a questionnaire – Secondary/Desk Research - involves collecting information that already exists.

Primary Methods • Questionnaires - face to face, postal or telephone • Interview • Observation • Consumer Panel

Primary Methods Advantages – Information is taken directly from the people who are, or will be, the business’s consumers. – Detailed information can be gathered and opinions obtained – Information is up to date and collected for a specific purpose Disadvantages – Inaccurate – people may not give accurate answers e. g. they may say they will buy something when they won’t – Time and money – to design the primary research, carry it out and analyse the data

Secondary Methods • Market research reports compiled by agencies such as MINTEL • Data already collected by the business itself e. g. past sales figures • The Office of Population Censuses and Surveys • Office for National Statistics • Public Libraries • Newspapers • Specialist magazines

Secondary Methods – – Advantages Information is cheaper to obtain as it has already been collected Information is available immediately If taken from a reliable source the information should be reasonably accurate The data available covers a wide range of sources Disadvantages – The data is unlikely to have been collected for exactly the same purpose as the business requires so it may not meet the business’s direct needs – Information may be out-ofdate depending on when it was collected – Information is available to every other business

Market Segmentation • The division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix. CIM's official definitions

Market Segmentation • The people that the firm decides to investigate make up a segment of the market. • Where the market has been divided up into groups of consumers who share similar characteristics. • The market for a particular good or service can be divided up according to the key characteristics of the consumers in that market.

Market Segmentation

Sampling • Firms have to decide how to select the people to be surveyed. • It can do this in two ways, known as methods of Sampling. • The two methods of sampling are: – Random – everyone an equal chance of being selected – Quota – this involves picking people to be surveyed so that they represent the make up of a particular market

Useful Websites • www. cim. co. uk