OCR GCSE Business: Market Research Techniques

Market Research Techniques for GCSE Business

Market research is the process of gathering and analyzing information about your target market. This information can help you make informed decisions about your product, pricing, promotion, and distribution.

There are two main types of market research:

1. Primary Research: This involves collecting data directly from your target market.

a) Surveys: * Definition: Surveys are a structured set of questions used to collect data from a sample of your target market. * Types: * Questionnaires: Paper-based or online surveys with closed (multiple choice, tick boxes) or open-ended questions. * Interviews: Structured (set questions) or unstructured (open discussion) conversations with individuals or groups. * Advantages: * Can collect quantitative (numbers) and qualitative (opinions, feelings) data. * Can be customized to your specific research needs. * Disadvantages: * Can be time-consuming and expensive to design and administer. * Response rates can be low, potentially leading to biased results. * Example: A survey asking potential customers about their preferences for a new product.

b) Interviews: * Definition: Structured conversations with individuals or groups to gather detailed information about their experiences, opinions, and attitudes. * Types: * Structured Interviews: Use a predetermined set of questions. * Unstructured Interviews: Allow for a more open and conversational approach. * Focus Groups: Group discussions moderated by a facilitator to gather insights and opinions. * Advantages: * Provide rich, qualitative data that can reveal deeper insights. * Allow for clarification and follow-up questions. * Disadvantages: * Can be time-consuming and expensive to conduct. * Responses can be influenced by group dynamics in focus groups. * Example: Interviewing customers about their satisfaction with your current product or service.

c) Observations: * Definition: Watching and recording customer behavior in their natural environment. * Types: * Direct Observation: Watching customers in person. * Indirect Observation: Analyzing data from sources like CCTV footage or website analytics. * Advantages: * Provides real-time data about customer behavior. * Can be more objective than surveys or interviews. * Disadvantages: * Can be intrusive or unethical. * Can be difficult to interpret or analyze. * Example: Observing how customers interact with a product in a store.

2. Secondary Research: This involves collecting data that has already been collected by someone else.

a) Desk Research: * Definition: Gathering data from readily available sources such as books, journals, websites, and government publications. * Advantages: * Relatively inexpensive and readily available. * Can provide a broad overview of the market. * Disadvantages: * May not be specific to your needs. * Data may be outdated or unreliable. * Example: Using industry reports to gather information about market trends.

b) Market Research Reports: * Definition: Detailed analyses of specific markets or industries. * Advantages: * Provide in-depth insights and analysis. * Often conducted by reputable market research firms. * Disadvantages: * Can be expensive to purchase. * May not be tailored to your specific needs. * Example: Purchasing a report on the global mobile phone market.

c) Government Data: * Definition: Data collected and published by government agencies. * Advantages: * Usually reliable and comprehensive. * Often free or available at low cost. * Disadvantages: * May not be specific to your needs. * Data can be complex and difficult to interpret. * Example: Using census data to understand demographic trends in your target market.

Strengths and Limitations of Market Research Techniques:

How Market Research Informs Business Decisions:

• Product Development: Understanding customer needs and preferences.
• Pricing Strategy: Determining the optimal price point based on market conditions and competitor offerings.
• Marketing Campaigns: Targeting the right customers with the right message.
• Distribution Channels: Choosing the most effective ways to reach your target market.

Key Takeaways:

• Choosing the right market research techniques depends on your specific research goals and budget.
• Primary research is crucial for understanding your target market directly.
• Secondary research provides a broader context and can be used to complement primary research.
• By understanding the strengths and limitations of each technique, you can make informed decisions about how to use them effectively.

Remember:

• Market research is an ongoing process.
• Analyze your data carefully and use it to make informed business decisions.
• Continuously refine your market research strategies to stay ahead of the competition.