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2021 FULL ASSIGNMENT (DISTINCTION)- Unit 22 - Assessment 1: What is market research?

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Module
Unit 22 - Market Research

Institution
PEARSON (PEARSON)

Unit 22: Market Research What is market research? Examine the types of market research used in business 22/A.D1 Justify the use of using specialist marketing agencies for carrying out original market research. 22/A.M1 Assess, using suitable examples, how different market research methods...

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Uploaded on March 7, 2022
Number of pages 9
Written in 2021/2022
Type Essay
Professor(s) Unknown
Grade A+

assess
using suitable examples
how different
a examine the types of market research used in business
justify the use of using specialist marketing agencies for carrying out original market research

P1: Explain the range of market research methods used by a selected business

What is market research?

Market research is a process that businesses undergo to better understand a particular market’s wants, needs
and preferences. The business gathers information on the market and the demographic of that market to
better understand the target market.

There are two methods that businesses can use to collect their information - Primary research and secondary
research.

The Purpose and Benefits of Conducting Market Research

Understanding customer behaviour

In order for businesses to be successful, they must understand the demographic of their customers and the
reasons for why they are their customers. This information can be used to better convince their customers to
buy more. For example, businesses can use information on their customers’ behaviour to their advantage by
encouraging certain feelings to get what they want out of their customers’.

Determining buying trends

Determining buying trends is important to any business as they can use this information to better target their
advertising. For example, one generation of their customer demographic may have stronger spending habits.
Businesses can use this information with targeted advertising to get the most out of their marketing.

Investigating brand/advertising awareness

Market research can give us information on the company’s brand/advertising awareness – telling us how
cost-effective the marketing is for the business. Using this information, businesses can target their
advertising using the information based on the campaigns that had the most reach and produced the most
brand awareness.

Aiding new product development

When a business is in the development stage of a new product, they can use market research to gather the
opinions of their customers to get their take on the new product. For example, a company could send
samples of the new product to their customers to gather information to predict how the product will do when
on the market. Allowing the business to better understand the customers’ comments and view, they are
better able to make changes to ensure it meets the customers’ needs and wants, allowing for a better launch.

Investigating feasibility of entry into new markets

As mentioned above, businesses need to predict and analyse the market when launching a new product or
launching into a new market. Before a business enters a new market, they must ensure there will be adequate
demand and that the market is not already too saturated. This investigation into the market can be done by
communicating to key-stakeholders and/or customers of that particular market. The investigation of the new
market will produce data on the key players of the market and the predicted usage and impact of the product
on the market. This data can be used within the business to influence whether to go ahead with entering the
new market and whether alterations need to be made before they do.

,Types of Research Available

Qualitative Research

Qualitative research provides an insight into what customers are thinking and what motivates those thoughts.
It includes rich data in-depth data sets that can help uncover a potential problem and can help to develop
ideas. It can be gathered face-to-face or in focus groups where respondents are encouraged to elaborate on
their answers.

Quantitative Research

Quantitative research is obtained through the use of structured questions that are usually closed ended
questions that do not allow the customer to elaborate. The answers are used to form datasets that can be
statistically analysed to understand trends within their customers’. Quantitative research can be obtained
through asking large amounts of their customers to answer surveys and questionnaires. These large datasets
can give the business an idea of how their customers behave.

Primary Research

Primary research is where the data is collected by yourself by directly exploring the target market – the data
is owned by yourself. This is data that has been collected for the first time and is carried out with a named
objective in mind. It can be used to help define a problem and can involve data collection methods such as:
Surveys, observations, e-marketing, focus groups, pilot research, etc.

Secondary Research

Secondary research is the use of data that someone else has collected – data not owned by yourself. It is the
use of pre-existing data from sources such as the internet, newspapers, company reports, etc. It is quicker
and usually more cost-effective than its primary counterpart.

How Apple use the following techniques of market research:

The founder of Apple, Steve Jobs, was quoted saying ‘It's really hard to design products by focus groups. A
lot of times, people don’t know what they want until you show it to them’. Apple does pay a lot of attention
to their customers' wants and needs.

Primary research example 1 – Questionnaires

Apple uses questionnaires as a means to get responses and feedback from particular age groups and different
demographics. They employ the use of a popular customer feedback website called survey monkey to obtain
this data. The questions they ask are related to what people prefer and what they use their phones for. They
use this data to get a picture of what their customers like and why they feel that way. They also have a
survey on surveymonkey where they ask their customers what product they use the most and why out of the
MacBook, iPad and iPhone. This primary research shows Apple what products are used the most. This
information can be used to better prioritize manufacturing on certain products.

Primary research example 2 – Surveys

On Apple’s own website, Apple.com, you can find a feedback section where they prompt you to give
feedback with regards to their Apple stores -
https://www.apple.com/chatterbox/us/research/retail/us/invitation_US.html. The 20-minute survey asks the
user open-ended questions where they are asked to express their opinions on how they felt when in the store.

, The link from the Apple website takes you to the website of the marketing firm that Apple uses to collect,
compile and analyse their data. The firms they use are called TNS. Apple uses qualitative feedback to
analyse whether their physical stores meet their high standards and whether improvements can be made
from the suggestions.

Primary research example 3 – Prototype Testing

Apple tends to release a product or multiple products every year, sometimes making drastic and
controversial changes to their products. To test how these changes will go down with their customers,
without releasing the changes to the public, they use prototype testers. These are members of the public who
sign up with external companies who put them in contact with other companies who want people to test their
new products, such as Apple. Apple pay these testers to spend time on the new devices and seek out any
issues they come across. These issues or bugs are given to Apple, who then make necessary changes. This is
an important form of primary market research as they can get information on how their products will go
down with their customers before they actually release to the public, giving Apple the chance to make
changes. This allows Apple to keep their stable reputation when they actually release the new product or
software change.

Secondary research example 1 – Sales Reports

Apple analyses sales reports from their own sales and that of their competitors such as Samsung to get a
picture of how successful their current strategies are. By being able to analyse how successful the current
strategies are, they can decide whether changes need to be made and can make a decision on whether certain
marketing strategies have been cost-effective. If Apple sees success in their sales figures, their confidence
may be boosted, encouraging them to continue their current strategies. Using sales figures also helps Apple
see what products are selling the most and at what times they peak. This type of quantitative data helps
Apple to determine trends and when their products are in most demand.

Secondary research example 2 – Company Comparison Websites/companies

Company comparison websites/companies use quantitative data sets to analyse trends and differences
between companies. Apple uses this form of secondary market research to see how their competitors are
doing. Apple can analyse the prices between their own products and that of their competitors as well as
comments from the public to see how their pricing stacks up against their competitors. If Apple can see that
their competitors have higher prices, they may be able to justify a price raise, leading to greater success of
the business.

Secondary research example 3 – Tech Reviewers

These specialist companies/websites allow Apple to see what popular tech influencers such as techradar.com
are saying about their products in comparison to their competitors' offerings. This allows Apple to see what
their arguably, most important customers say about their products and can get ideas on what improvements
should be made to appease the customer. Many customers rely on these websites and influencers as a source
of information that influences their decision to buy and their opinion on the company as a whole. Therefore,
it is important that Apple pay a lot of attention to these reviewers and influencers. They can use this
qualitative data to analyse what features of their devices are most desired and valued. Using this
information, they can make decisions on whether changes should be made.

M1: Assess, using suitable examples, how different market research methods are appropriate in helping to
meet marketing objectives and inform decision making.

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