StartUp Market Research AS Business Studies Aims and

Start-Up Market Research AS Business Studies

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

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

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.

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

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

Primary or Secondary Market Research? Research Method Primary 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. Secondary

Primary Research Methods Questionnaires Interviews Test marketing Focus groups Telephone surveys

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

Spot the odd one out – why?

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

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.

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

Primary Research – Sampling Methods Available Finance • Due to startup 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 Target Market • The newer the product the greater the risk – and the potential rewards! • A clearly identified target market is easier to target in terms of sample.

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

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?

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?