1.1.2 Market Research

Theme 1 –Market Research (1.1.
2)
 Learning Intention: To be able to understand the difference between product
orientation and market orientation.
 To be able to identify uses/limits of primary and secondary market research data
Success Criteria
Remembering Apply Analyse Evaluating
State the difference Illustrate examples Analyse the use of Evaluate the uses and
between a product and
market orientation and
the purpose of market
of different
methods of market
research. (Grade D)
market research and
quantitative/quallita
tive factors.(Grace
limitations of market
research and the
different methods used
STARTER
research. (Grade E) C/B) (Grade B/A)
Challenge
Complete a case study answer
Key words: market research, product/market orientation,

primary, secondary, quantitative, qualitative
Links with Emirati culture and UAE Society:

Dominos in the UAE using weather patterns for marketing purposes
Core values
Thinking about market research
Exploring different methods used
Enterprising examples of businesses using market
research
From the specification
a) Product and market orientation
b) Primary and secondary market research data
(quantitative and qualitative) used to:
identify and anticipate customer needs and wants
quantify likely demand
gain insight into consumer behaviour
c) Limitations of market research, sample size and bias
d) Use of ICT to support market research:
websites
social networking
databases
e) Market segmentation
Lesson Objectives
 To be able to discuss product and market orientation
 To be able to identify uses for primary and secondary
market research data
 To be able to explain limitations of market research
 To be able to describe uses of ICT to support market
research
 To be able to discuss market segmentation
 To be able to answer sample exam questions based on

the topic area
1.1.2 Market Research
PRODUCT AND MARKET

ORIENTATION
Product orientation
• Definition: Product orientation By 1918, half of all the cars in
the US were Model Ts. However,
is an inward looking approach it was a monolithic bloc; Ford
wrote in his autobiography that
to new product development in 1909 he told his management
where the key focus is on what team that in the future “Any
customer can have a car painted
products can be made and the any color that he wants so long
production process as it is black”*
• The product is the most

important factor when
providing products for a
market
Production Orientation Examples
Apple produce
innovative products,
McDonalds provide
generic products for
‘mass markets’.
Market orientation
• Definition: A
business that is
market orientated
is one which
continually
identifies, reviews
and analyses
consumers need. Customise your Audi
car, any engine, any
colour, any trim
Examples of a market orientated approach
• Amazon consistently change

the virtual marketplace and t
a r ke
adds features to address the u ct / M
a P ro d
concerns expressed by
e i t h e r d u c t
consumers. re ate st c o n
fu ll y c m u
• s Coca-Cola
e performs extensive
• One suchufeature
cc e s s
s is the sines research to come up with new
de r s c t b u
or and review
In rating p ro d u
system
rc h flavors for its consumers.
ta te d r e s e a
o r en
introduced
i by the
a r ke t
online • For users who are worried
m
e boost credibility.
eff ectivto
retailer about sugar content, the
company launched the zero-
calorie Diet Coke/coke zero.
Product or Market Orientated?
“Carrefour opens checkout-
free store in Dubai”
Primary and Secondary Research
Why would businesses collect data?
• To assess potential demand for a product or
service, to see if it will sell, and if so, how much.
• To see which promotions would best suit a
launch of the product or service e.g. price
skimming?
• To assess the competition, where do potential
customers shop already, do they buy substitute
or complimentary products?
Fun fact: Dominos pizza found that more pizza was
ordered when it rained, so now it links its
promotions to weather forecasts
What is a primary research?
• Primary research is original data gathered
by the researcher (field research).
• This is brand new data which the business
will gather about their product or service
Examples:
• Questionnaires (surveys)
• Interviews
• Observation
• Focus groups
• Consumer panels
• Test marketing
Secondary research
Secondary research or desk research involved the
collection of data that already exists in some form.
• Internet (websites), news

• National and Local Government e.g.
Office for National Statistics
• Annual reports (companies house)
• Academic organisations e.g. universities
• Newspapers and magazines
Secondary research –
annual reports
• It may be useful for a business to look at their
previous annual reports or even those of their
competitors
• An annual report is required if a business is a
limited company or a plc
• It will have such information as balance sheet
and profit and loss statement
• An annual report gives investors a good idea
about the financial health of the business, so
they can decide whether or not to risk investing
• See example report from M&S
Complete the table (5 mins)
Primary Secondary
Advantages • Directly focused on • Saves time
research objectives = fit • Cost effective
for purpose • Widely available
• Tends to be more up-to-
date than secondary
research
• Provides more detailed
insights – particularly
into customer views
Disadvantages • Time-consuming and • Not specifically gathered

often costly to obtain for the business
• Risk of survey bias – • May be out of date
research samples may • May contain bias
not be representative of
the population
Quantitative (Quantity data)
• Involves gathering data
and measuring responses
• Data displayed in charts.
Graphs, as statistics and
percentages
• Questionnaires written to
gather numerical data –
e.g. number of
respondents who…
Qualitative (quality information)
“We loved it.”
• Seeks to gather and explore “It really worked for my
feelings and thoughts about a family.”
product from consumers “We liked the natty
• Information gathered by; design and showed it to
our neighbour.”
– Focus group discussions
– Interview with consumers on
“I found it easy to use
what they “think” about the once I had read the
product or service manual.”
– Observations of buyer behaviour
“I was really pleased
(e.g. only family groups bought with the customer
the squash) service in the shop.”
Page 9 – textbook Q1 (15 mins)
Questions:
(4)
(8)
Extension – Read pages 10 and 11 of the textbook and make detailed notes on each of the
different primary/secondary methods of market research.
Challenge: Find examples of businesses that have used this specific method.
LIMITATIONS OF MARKET RESEARCH
Limitations of market research
• Research carried out did not give enough information
• The data is inaccurate or misleading
• The data (mostly secondary ) is non-specific to the organisation
• Reliability of data collected- were the same questions asked of each person, was the
sample big enough and reflective of the people who will use/buy the product would the
same results be obtained from a different set of people
•
validity reliability bias
Validity of data collected- does
it measure what it claims to
measure, is it accurate?
• Cost effective- are the costs of
carrying out the research going
to be worth while?
• Time limitations
• Budget limitations
• Asking wrong questions in
primary research gathers the
wrong data
• Reluctance of respondents to
participate in research
USES OF ICT TO SUPPORT MARKET
RESEARCH
ICT in Market research
• Market research is all about the
gathering and analysis of data to
make decisions, computers can be
used both at the gathering stage
and at the analysis stage to speed
up the process.
• Internet data gathering is very cost
effective as it reaches all customers
using the website, requires no staff
and customers can fill it in, in their
own time. Data is more likely to be
reliable as it is not rushed.
MARKET SEGMENTATION
Market segmentation
• Definition: an identifiable group of individuals
(or part of a market) where consumers share
one (or more) characteristic or need
– Demographic, e.g. gender
– Geographic, e.g. Scotland, Wales, South of England
– Behavioural, based on usage or attitude to product
e.g. Occasional, everyday
– Psychographic e.g. personality types, good with
money (safe savers), or impulsive thrill seekers
– Religion / ethnicity e.g. Halal or kosher foods
Market segmentation - Social Class
Categorises individuals according to their occupation, a business may
decide to target ABC1 or DE consumers, depending on the product .
A Upper class – professionals e.g. lawyers, accountants
B Middle class – other professional e.g. teachers, nurses
C1 Lower middle-class – skilled non-manual workers e.g.

police, clerical staff
C2 Skilled working class – trained skilled workers e.g.
plumbers, electricians
D Working class - unskilled manual workers e.g. labourers,
farm workers
E Unskilled/unemployed - those on state benefits e.g.
pensioners, unemployed
Sample questions
Sample question 1
4 mark question – half the marks are for context – case
study on next slide
2 marks
for
application
1 mark
2 marks
for
for
knowledge
analysis
Yotel website
Answer question 1
Sample question 2
2 mark question – no context needed, just demonstrate
your knowledge and give a correct definition
Answer question 2
Sample question 3
4 Mark question – half the marks are for context, case
study on next slide
1 marks
1 mark for for
knowledge 2 mark
analysis
for
application
Vi Spring
Answer question 3
Revisionstation revision video
Revision Video
Glossary
• Qualitative data; data gathered that is numerical such as % of customers
who buy more than once a week
• Quantitative data; non numerical data such as how customers use the
product
• Product orientation; to sell products and services that the business wants
to produce
• Market orientation; to sell products or services based on customer needs
and wants
• Primary market research; information which has to be gathered
• Secondary market research; information which already exists
• Market segmentation; a whole market can be divided into sections called
segments

1.1.2 Market Research

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Theme 1 –Market Research (1.1.

Key words: market research, product/market orientation,

Links with Emirati culture and UAE Society:

 To be able to answer sample exam questions based on

PRODUCT AND MARKET

• The product is the most

• Amazon consistently change

• Internet (websites), news

Disadvantages • Time-consuming and • Not specifically gathered

A Upper class – professionals e.g. lawyers, accountants

B Middle class – other professional e.g. teachers, nurses

C1 Lower middle-class – skilled non-manual workers e.g.

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