The document discusses various methods for conducting market research, including secondary research using internal company data and external sources, as well as primary research collecting first-hand information. It describes different sampling methods like random sampling, stratified sampling, quota sampling, and cluster sampling. It also distinguishes between quantitative and qualitative research approaches. The purpose of market research is outlined as helping businesses focus on objectives, aid planning, reduce risks, and communicate their image. Both advantages and disadvantages of market research are provided.

1. Market Research

2. Market Research

3. Secondary Research

4. Internal Sources Company Accounts Internal Reports and Analysis Stock Analysis Retail data - loyalty cards, till data, etc.

5. External Sources Government Statistics (ONS) EU - Euro Stat Trade publications Commercial Data - Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications, journals, etc.

6. Sampling Methods

7. Market Research Sampling Methods: Random Samples – equal chance of anyone being picked May select those not in the target group – indiscriminate Sample sizes may need to be large to be representative Can be very expensive

8. Market Research Stratified or Segment Random Sampling Samples on the basis of a representative strata or segment Still random but more focussed May give more relevant information May be more cost effective

9. Market Research Quota Sampling Again – by segment Not randomly selected Specific number on each segment are interviewed, etc. May not be fully representative Cheaper method

10. Market Research Cluster Sampling Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population Multi-Stage Sampling Sample selected from multi stage sub-groups Snowball Sampling Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

11. Primary Research

12. Market Research Primary Research First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question – closed – limited information gained; open – useful information but difficult to analyse

13. Market Research Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how Qualitative – more detail – tells you why, when and how!

14. Purpose

15. Market Research Advantages of Market Research Helps focus attention on objectives Aids forecasting, planning and strategic development May help to reduce risk of new product development Communicates image, vision, etc. Globalisation makes market information valuable (HSBC adverts!!)

16. Market Research Disadvantages of Market Research Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and ‘gut feeling’ Always a problem that we may never know enough to be sure!

17. Market Research Methods in Travel and Tourism BTEC Travel and Tourism

18. Why Do Market Research? Market research is commonly seen as finding out if a product or service will be successful But there is more to it than that Market research can have many different purposes

19. Research Purposes To identify customer needs and then meet those needs To learn about customer attitudes and values To help develop products and services that meet identified needs

20. Research Purposes To discover sales trends To find out about competitors’ activities To measure the effectiveness of promotional activity To classify customers into groups or types

21. How Is It Done? Unique research that uses surveys, interviews and questionnaires to find out about markets This is known as ‘primary’ research Using existing information such as internal or external records and statistics to learn more about markets This is called ‘secondary’ research

22. Why Use Different Methods? Each different method has its advantages and disadvantages Each may only be appropriate in certain circumstances Users need to work out if the method is right for them according to its cost, reliability, validity, accessibility and the time it will take to gather

23. What Now? Go to the Activity that accompanies this Presentation to find out more about how market research is used in the travel and tourism industry