10.1 Market Research

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Contents

1. Activity questions…………………………………………………………….…2 2. Introduction………………………………………………………….….………3 3. P1….…………………………..….…………………………………...………...3 4. P2.……………………………………………………………...……..…......…..6 5. M2...………………………………………………….……………...…………..7 6. Conclusion……………………………………………………………………….9 7. References……………………………………………………………………….9

Assessment activity 10.1
P1, P2 & M1

Two major developments in the first decade of the 21st century were the widespread use of the Internet and the growth of high street coffee shops such as Starbucks and Costa Coffee. A business opportunity that combines these two ideas is to set up a town centre coffee shop that offers wireless Internet connection, computer terminals and good-quality coffee. An entrepreneur has asked you to carry out some market research to find out whether such a venture would work in your local town. However, she would first like to know some more details about different types of market research that can be carried out. Produce a manual for the entrepreneur that deals with the following tasks.

1. In your manual describe the main types of market research. P1 2. Explain how different research methods could be used to make a marketing decision about whether there is a market for an Internet café business. P2 3. Explain, whit examples, how the different research methods that you have identified are appropriate to enable the entrepreneur to identify whether the makes is of a sufficient size for an Internet café. M1

Grading tips
1. Make sure that you identify in your manual the main types of market research – primary/secondary, qualitative/quantitative, internal and external. Give examples of each type and briefly outline the benefits of using this method. P1 2. Show how different types of market research would be helpful in identifying whether there would be a market for an Internet café business in your local town. Show how the different research methods would complement each other. P2 3. Make sure that you provide examples of ways in which the research methods could be used to identify the target market, what customers are looking for and whether demand would be sufficient. Justify the use of each method in terms of the sorts of results that it could provide. M1

Introduction

Market research skills are important in preparing for work. It is important to understand what customers want and need, and to develop the skills to find this out. In this assessment I will talk about main methods used to collect data and how to decide on the most appropriate method of research for a given situation. I am going to use diagrams and charts to illustrate my findings and to make it easier understandable.

P1
In this task I am going to describe the main types of market research– primary/secondary, qualitative/quantitative, internal and external. I am going to write examples of each type and briefly outline the benefits of using this method.

The main types of market research:

PRIMARY MARKET RESEARCH involves collecting new information to meet your specific needs.

Primary research methods:
❖ Observation involves careful analysis watching some type of behaviour. The strength of this method is that it allows researchers to view what actually happens. In any public place, for example, a mall, café, restaurant, cinema or supermarket you can observe what people are buying, what service they are using.

❖ Experiment is recording and analysing the results. It is useful for changing variables in the marketing mix. For example, experiment might be carried out where the package of a product is changed or improved. To see customers reaction and opinion about changes.

❖ Surveys typically involve a sequence of questions, which may be in the form of a questionnaire or interview. Benefit of surveys is that it is an efficient way of collecting information from a large number of respondents. Very large samples...
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