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LESSON 4:

MARKET RESEARCH
CROSS-CURRICUlAR:
 nterprise skills: Problem solving, communication, E research, teamwork, the world of business, self-led learning and self reliance, risk taking Literacy: Summarising analysis and evaluation, making deductions, note-taking, undertaking independent research, reading journals and trade magazines, planning techniques, use of business terminology, evaluating from data Numeracy: Analysing results, interpreting graphs, using and applying, counting ICT: Data and information, searching and selecting, organising and investigating, redefining and presenting information

AIm: To be able to identify methods of primary


and secondary market research

LEARNING OBJECTIVES:
By the end of this lesson All:  Students should be aware of the relative value of the different approaches to market research. Most:  Students should be aware of the different approaches to market research and which they would like to complete. Some:  Students will research the principle of sampling, including size and types of samples and factors influencing the choice of sampling.

KEY WORDS:
Primary Research: this is new information that you gather yourself (not already in published material), otherwise known as field research. Secondary Research: this is information collected for a specific purpose by someone else, e.g. government statistics, trade publications and published academic research. This is known as desk research.

STARTER:
What marketing is about? Aims and objectives, the marketing mix, external and internal environment Students are to discuss their perceptions and experiences of marketing and to explore how marketing mix elements work together. What are customer needs and wants and how do these relate to the setting of marketing aims and objectives? Students are to identify key external factors that have had an impact on an organisations marketing decisions. Students should discuss the exchange process and how it informs marketing decisions.

ACTIVITY: DEFINING THE mARKETING mIX


Teacher briefly introduces the marketing mix. Introduce students to a branded product with which they are familiar (the teacher could have these already with them, e.g. a can of bake beans or bottle of cola, and give one to each group). Discuss how they would define the marketing mix for that product.

Thomson Local Build a Business Programme 2009

LESSON 4: MARKET RESEARCH


Who might the target customer be You can identify this by thinking about:  1. W  here the product is sold and where it is not sold 2. How and where the product is advertised  3. W  hat the price is compared with similar competitor products  Explain research needed at the start to decide this Discuss: Marketing in its simplest form is trying to find out: What does the customer want and need? Any business that hopes to be successful needs to be aware of the needs and wants of its customers. Therefore, the main aim of marketing is to discover what the customers needs and wants require and to plan and organise a way of meeting these requirements so that profits can be made. Refer back to the marketing mix (four Ps) focusing on promotion. Discuss how it is used to communicate to potential customers. Teacher discuss opportunity to use internet (can refer to the prize from Thomson Local). Students to visit various websites and see how small businesses use them to provide information to the customer. Discuss what you would put on a website information about the business: what you sell or the services you provide, how to get in contact with your business and where the business is located.

MAIN ACTIVITIES AND OUTCOmES, wITH ASSESSmENT mETHODS INClUDING AFL: ACTIVITY FOR BUSINESS PlAN
In groups decide how you will research your product/service discuss in your groups how you might go about doing this. You will need to identify what the information will be needed for and what methods you will use to collect the appropriate marketing information. Ensure you are providing a product/service that is fulfilling a gap in the local market at the same time as contributing positively to the local community (refer to THE CHALLENGE launched in Lesson 1) Complete Worksheet 9: Market Research

RESEARCH wIll HAVE TO BE CARRIED OUT OUTSIDE OF lESSON TImE. PlENARY


Questioning: Why are different approaches to market research needed?

DIFFERENTIATION:
Supported material Worksheet 8: Student Help Sheet Marketing Extension Discuss the need for sampling, including size and types of samples and factors influencing the choice of sampling.

RESOURCES:
Teacher to bring in recognised brand name products to give to your groups (starter activity). Worksheet 8: Student Help Sheet Marketing Worksheet 9: Market Research

Thomson Local Build a Business Programme 2009

WORKSHEET 8

STUDENT HELP SHEET: MARKET RESEARCH


Secondary Research: this is information collected for a specific purpose by someone else, e.g. government statistics, trade publications and published academic research. You need to consider that it wasnt collected for YOUR purpose, but you can still use it. This is known as desk research, because you can collect it from your desk.

All businesses aim to deliver the right goods (products) or services to their customers, if they arent right no one will buy them! Carrying out marketing research is a way a business can ensure it provides the right goods/services to meet its customers needs and wants.

IN OTHER WORDS MARKET RESEARCH IS ALL ABOUT GETTING THE GOODS/SERVICE RIGHT.
Market research is about finding out customers needs and wants before developing a new product/service. Market research is a continuing process and does not end with the launch of the product. When you start your business you need to keep doing it, to make sure you stay competitive and keep fulfilling customers needs and wants (these change over time so should your business). Market research is about gathering, recording, and analysing data.

SO WHO TO RESEARCH AND HOW?


QUESTIONS FOR THE CUSTOMERS:
a) Direct questions: these seek to gain an
exact, specific response. For example Do you like chocolate ice cream? Answer by only saying Yes or No. can be used in personal interviews to establish attitude and behaviour patterns from respondents.

b) Indirect questions: this type of question

Remember, you have to analyse these. Direct questions are usually easier to analyse.

MARKET SEGMENTS
Market segmentation is the process of dividing a market up into different groups of customers, in order to create different products to meet their specific needs. In other words, who do you want to ask the questions to? Marketing is based on the theory that people of the same age, income, etc spend their money on similar products so you want to research the people you plan to aim your product/service at e.g. males, people aged 25 to 30, people who have pets, etc.

RESEARCH METHODS
Primary Research: this is new information
that you gather yourself (not already in published material), otherwise known as field research, because you have to go out in the field to find it. Examples: interviews, surveys, observations.

EXAMPLES OF SEGMENTATION
Age group Gender Geographic Income and social groups

For more information:


Google key words: Primary Research; Secondary Research or Market Research

Thomson Local Build a Business Programme 2009

WORKSHEET 9

MARKET RESEARCH
PURPOSE:
What are you trying to find out? Think product, price, place, promotion

RESEARCH:

e.g. survey questionnaire, focus group, internet

RISK INVOlVED:
What could go wrong/what problems you will face?

PlAN TO mINImISING THE RISK:


How will you overcome the problems?

REwARD:
What will you get out of doing this research?

Thomson Local Build a Business Programme 2009