This document provides an overview of how businesses use market research through various methods like primary and secondary research, qualitative and quantitative research. It discusses different types of primary research sources like questionnaires, focus groups, mystery shoppers, and observations. It also covers secondary research sources like previous market research, trade journals, books, newspapers, and census data. The advantages and disadvantages of each research method are explained. Overall, the document emphasizes that market research is useful for businesses to understand customer needs and adapt their products and strategies accordingly to increase sales and profits.

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Market
Research
P3

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Introduction
I am goingto be givinga detaileddescriptiononhow businessesuse market
researchand marketingresearchtosuccessfullybuildontheirplansof
developmentforthe future.Iwill includethe types of marketingresearch
such as primaryand secondary,whatsome of themare and the advantages
and disadvantagesof usingtheseresearchmethods.Iwill thengive an
explanationonqualitative andquantitative researchandwhymarket
researchisuseful.I will alsoapplythisknowledge tohow the businessesI
have chosenmaybe able touse these methodstoincrease the potential for
growthand sales.
Market research
Market research helps abusiness understandhow theirdecisionscanmake
changesto the markettheyare in.Businessesneedtogatherinformation
fromeitherprimarysourceswhichare fromwithinthe businessorsecondary
sourceswhichcan be from outside the business.The businessthenneedsto
analyse thisdatato see whatadjustmentsmayneed tobe made if any to the
marketingplan andthe potential advantagesbutalsothe potential
disadvantagesof takingactions.The businessneedstointerpretthe
informationtosee whetheralternative methodsof presentingtheirproducts
are necessaryand whetherthere isanythingthatthe businessisunable to
control that may affecttheirsales.
Types of market research
There are twotypesof marketresearchwhichare primaryand secondary
research.The differencesbetweenthemisthatonlyresearchthathas
actuallybeengatheredbythe businesssuchas,questionnairesabouttheir
productsand observationsthattheymay make onthe staff or customers

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associatedwiththe businessare primaryresearch,because itisgatheredby
the businessitself.Secondaryresearchisdifferentbecause ithasalready
beengatheredsuchasinformationona website,thistypeof researchcan
alsobe somethingsuchasstatisticswhichmaybe useful tobusinesses
because itcan show how well theircompetitorsortheirownbusinessare
doing.The informationwithinbothof these typesof research canbe either
internal informationorexternal. Internalinformationisgatheredwithinthe
businesssuchasobservationswhereasexternal researchiscarriedoutfrom
outside the businesssuchasquestionnairesandnewspapers.
Primary research
Primaryresearchis the research that has beengatheredfirsthand.
The researchthat is obtainedcanbe ineitherof twoformats,if it is
qualitative thenitissomethingthattakesmore time toanswerbutgivesa
more openresponse withreasonsbehindthe decision.If the researchis
quantitative thenitismucheasiertorespondtoand isconsistsof closed
questionsandstatistics.
Some of the researchsourcesthatbusinesseswilluse are;
Questionnaires and surveys
These are carriedout fromoutside the businessandcanbe eitherof two
kindsof research.Most businesseswouldendupusingtheseatsome point,
especiallylarge businesses.These canrange fromanythingsuchas “was this
helpful?”afterreadinganewsarticle ona website toa full questionnaire
aboutspecificproductsthathave highpopularityandhow theycan be
improved.A goodexample of abusinessthatmayuse these isTescobecause
theynow sell a large varietyof productsandhave a well developedbrand
name. Theysendoutcustomersatisfactionsurveystotheircustomerssothat
theycan get feedbackontheirmarketingactivityandthe service provided.

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The advantagesof usingthisare that the data can easilybe distributed
througha varietyof differentwayssuchasinternet,post,andemail.The data
isjust as easyto returnand there isoftena large quantityof feedback.
The disadvantagesof usingthisare that people sometimesdon’tbother
fillingthemoutastheysee themasspam andtherefore onlyabout10% will
reply,thismeansthatif usingposttheywill have tospenda lotmore on
paperand postage.
Focus groups
Focusgroups are groups of people thatare askedaboutthingssuch as their
viewpointsonthe productandservicesthatthe businessdistributes.
Businessesuse these totheiradvantage totryand findoutwhat the
customersmaythinkaboutthe productsthat the businesscurrentlysellsoris
planningtodevelopandsell.A problemof usingfocusgroupsisthatif they
are askedwithinalaboratorysetting sothe groupof people maynotreveal
theirtrue thoughts.A businessthatmayuse focusgroups isone such as
Tesco;focus groupsare veryuseful forbusinessesthatdeal withretail.Tesco
may use thisto findoutwhat productsthe customerswantto be soldat the
differentsizedstoresthattheyhave,thismaymean thatTescowill be saving
theirtime insteadof researchingonwhatproductstheircompetitorsare
sellingmore of andtheycan findwhytheircustomersare notbeing
persuadedbythingssuchas offersanddiscounts.Thiswaytheywill save
some time and moneyandwill alsogeta reliable collectionof data.
The advantagesof usingthisare that people canbe easilyaskedfortheir
thoughtsandthere are usuallynocostsinvolvedwithit.Therefore the
businesscangetfeedbackwithoutspendingitsprofits.
The disadvantagesof usingthisare that people the responsesmaylack
honestresponsesmeaningthatthe feedbackmaybe biased.Therefore the
future actionsbasedonthe feedbackmaybe incorrect.

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Mystery shoppers
Mysteryshoppersare people whoare sentintothe storesto purchase a
productor service andtheywill give the businessfeedbackonhow their
customerservice is.The businesswill have toensure thattheyhave agood
customerservice tomake sure that the mysteryshopperispleasedandthat
isthe reasonwhythe businessisnottoldaboutthe mysteryshoppervisiting.
These are mainlyusedby businessesthatare inthe retail industry.If the
mysteryshopperisnotpleasedthe business theymay be toldtheyneedto
improve andthisgivesthe businessinformationonhow theyshouldact.
Tescomay alsouse thissource of external informationtomake sure thatall
theirstoresmeetthe standardstokeepcustomerssatisfied.Theymaydothis
by evaluatingthe researchthatisgiventothemanduse it to improve how
theirbusinessactswithitscustomerstoensure thattheyare keptsatisfied
and profitismaintained.
The advantagesof usingthisare that the feedbackisof large qualityand
therefore hasbothadvice abouthow the businessisdoing wellandexactly
whatit can do to improve.
A disadvantage of thisisthatit takestime andmoneytodo as the business
needtopay someone todoit.
Observation
Observationsmaybe carriedoutto make sure that the staff are working
correctlyand treatingthe customersfairly.A personwithahigherjob
positionmayvisitabusinessandobserve the waythattheyare workingto
make sure that efficiencyandstandardsare updated.Manybusinessesmay
use these because theyare a greatway of seeinghow well theiremployees
co-operate withthe customersanditallowsthemtogetgood feedbackon
the staff and the businessingeneral.A largerretail businesssuchasAsda
may regularlyuse these toensure thattheirpotential forgrowthisnot

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disrupted byanyemployeesthatare notgivinga goodservice tocustomers
so that Asdamay keepthe profitshigh.
The advantagesof usingthisare that the businessisable todirectlysee how
the businessisoperatinganddonothave to relyon data that comesfrom
otherpeople.
The disadvantagesof usingthisare that itcosts a lot of time andobservations
will needtobe done more thanonce to get accurate results.Therefore the
businessmayalsoneedtopaymore to the observer.
Advantages and disadvantages
The advantagesof usingprimaryresearchare that the informationis
gatheredbythe businessitself andisveryreliable becauseitisupto date
and ithas not beenedited.The informationthatisgatheredcanbe appliedto
the businesstoimprove andbecause ithasbeengatheredbythe business
and itshouldanswerquestionsthatare specifictothem.Some sourcessuch
as questionnairescanbe carriedoutto gain a quickbulkof informationon
theirbusiness andthe industrytheyoperate in toimprove customer
awareness.
The main disadvantage of primaryresearchisthatthe informationislimited
to beinggatheredonlybythe businessandtheymaystruggle togeta large
quantityof thisinformation.Thisalsorequiresthe businessneeding
assistance from otherpeople andwill normallyhave topayspecialistand
researchcompanies.Overallthiscanbe verycostlyand expensive.
Secondary research
Secondaryresearchisthe informationthathasalreadybeencarriedout,
possiblybyotherbusinessesor previousstatisticsthathave beencalculated
on the businessanditscompetitors.Some of the researchsourcesthat
businesseswilluse are;

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Previous market research by the company
The businessesare able touse previousmarketresearch theyhave
conductedincludingsalesdatato findout whatdecisionshave beenbadfor
them,fromthistheycan ensure thattheydo not make the same mistake
againand therefore willtrytoavoidit or theycan repeatthe thingsthatthey
have previouslydonewell.Thisisanadvantage tothe businessbecause they
can alsosee what decisionswentrightandare no longeras efficient;from
thistheycan adjusttheirwayof workto increase efficiencyinthe business.A
businesssuchasCoca Colamay use thisbecause theydosell manydifferent
productswiththe same brand name.Theywill needtomake sure which
productsof theirsare gettinggoodsales fromdifferentcampaigns
completed.Forexample whentheyhave alimitededitionproductsuchasa
new flavour,theymaylookat how well itsellsandif itsellsgoodenough
theymay actuallydecide toeitherextendthe availabilityperiod,bringitback
for a limitedtime inthe future,ordecide tomake ita new complete product.
A disadvantage of usingthisisthatif the businessonlyrecentlystartedthen
there isno previousmarketresearchtoworkfrom.
Trade journals
Trade journalsare newsitemsthatare specifictotheirmarket;an exampleof
thisisthe Grocer forthe foodindustry.One of the advantagesof a business
usingthisisthat the informationisspecificandall of the informationis
relevantforthe businessanditsmarketenvironment.A disadvantage of this
isthat theyare publicandothercompetitorsare alsoable to see the
information,therefore theycan alsouse itto theiradvantage.
Books and newspapers
Newspapersare helpful tobusinessesbecausetheyare able topublicisetheir
productsusingadvertisementsandbecause of the large amountof people
that readnewspapersona dailybasis,itcangive a large amount of

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recognitioninreturntothe businessandincrease awarenessaboutthe
brand.A smallerbusinesssuchasCurrys,whichare well knowninthe UKbut
not as mucharound the worldcan use these small opportunitiesof
advertisementstotheiradvantage andcangive theircustomersawarenessof
theirbrand. The way thisworksinresearchis that businessescanfindout
whattheircompetitorsare tryingto promote anduse it to theiradvantage by
possiblypromotingitaswell butat a cheaperprice.Theymay alsosee from
primaryresearchwhatthe customerswantandsee if theircompetitorsare
promotingthese products,if theyare nottheyare able to gain an advantage.
An advantage of usingnewspaperstogetresearchisthat it doesn’tcostthe
businessanymoneytodoso and the informationispublicsoanyone can see
it.
A disadvantage of usingnewspapersisthatthe mediaoftenportraythings
much differenttowhattheyactuallyare and therefore the datamaybe
unreliable.
Census data
Census datais the gatheringof data on customers. Businessesmayuse
censusdata to findoutwhattheyneedto be sellinginthere store tomeet
the customer’sneedsthatlive locally.Theywill findoutaboutthe general
income of people incertainareassuch as the area where theirstore is
located,orthe areathat theyplanto builda store and fromthistheywill
adjusttheirproductsthat theysell sothattheyare more affordable tothe
customersandfill theirregularneeds.A businessthatmayuse this isTesco
because theyhave manydifferentsizedstoreswhichare chosenaccordingto
the local surroundings,theyneedtomake sure whattheyare sellingis
affordable to the communityandthiswaytheywill maximise theirsales.
The advantagesof usingcensusdata are thatbusinessescanchange the
productstheysell locallytomeetthe needsof theircustomersandwillkeep
themsatisfied.

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The disadvantage of usingcensusdataisthat the data can be misinterpreted
and therefore the businesswill dosomethingthatdoesn’tmeetthe needsof
customers.
Advantages and disadvantages
The advantagesof usingsecondaryresearchare firstof all that the
informationcanbe collectedinbulksupplyandthe informationcanbe
collectedquicklyasthe businessdoesnotphysicallyneedtogoand carry out
the research.Anotheradvantage of usingsecondaryresearchisthattheycan
findoutmore about theircompetitorsaswell ashow to operate the
business.Usingthistype of researchisverycosteffective.The disadvantages
of thisresearchare firstof all the informationisgeneral;itwasnotdesigned
specificallyforthatbusinessandtherefore maynotapplytothem.The
informationcanalsobe unreliablebecause onawebsite thatmanypeople
can edit,itcouldhave beenchangedtosomethingthatisn’ttrue and could
be biased.There isalsothe disadvantage of the researchbeingoutof date
because itdoesnotget updatedusually.Forexample anewsarticle from
2007 will be differentto2011 because of the value of money changing;
customersmaynot be able to affordcertainthingsthattheymighthave been
interestedinbuyinginthe article.
Qualitative research
Qualitative researchisusedbybusinessestogetinformationthatisdetailed
so theycan adjust theiroperationstotheircustomer’s needs. Usuallythe
thingbeingaskedforwill be openendedsothatthe customerisable to give
theiropinionindetail insteadof justtickingacheckbox.Thiskindof research
isusuallyusedinone to one interviewswiththe customers,thereforethey
can ask indetail the questionstheywantansweredandgeta goodresponse
fromthem.Some of the answerstheymayaskfor can be influencedby

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personal experiencesandtherefore the customerswillgive amuchbetter
response.One of the questionsthatmaybe askedby a businessiswhythey
boughtthe product andthe questionwill be openendedtoallow anopen
answer. Thisresearchgivesthe reasonswhyconsumersdothings,notjust
knowledge thatthisiswhattheywoulddo.
Quantitative research
Quantitative researchmay be usedtofindoutstatistical informationon
customersviewsof something,whereas qualitative researchisusedtofind
out detail,quantitativeresearchisusedtofindoutjustthe basicviewpoints
and the resultsare receivedinbulksupply. Thisresearchisconductedto
make sure that much informationisactuallyreceivedinsteadof muchdetail.
Such thingstheywill lookforisthe sales,valueswithinthe marketand
customerresponses.One of the mostcommonformsbusinesseswill use to
findthisisquestionnaires.These questionnaireswill usuallybe questions
withtickboxes.
Why market researchis useful
Market researchisimportantforbusinessestocarryout so thattheyknow
whattheircustomersneedandwantthe market researchisuseful because it
allowsthe businesstosell theirproductsandservicesaccordingtothe
customer’sneeds andthereforethere islessriskinvolvedwiththeir
decisions.Findingoutabouttheircustomers’needsandtheircompetitors
actionsalsoallowsthe businesstoavoidmaking mistakesbecausetheywill
give themmore guidance on whattheyneedtodo. The businessisable to
getup to date informationfromthe marketplace andtherefore decide how
theycan adjusttheirproduct and strategy to increase salesandprofits.Itis
importantforbusinessestomake sure thattheyconductthe right amountof
informationsotheygeta detailedcollectionof dataallowingthemtoknow
whattheyhave to do. If businessesdidnotcarryout enoughresearchthen

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theywill be atmore riskbecause theywill notknow whattheircustomers
wantand how theircompetitorsare operating.
Market researchlimitations
The limitationsof marketresearchisthatthe informationthatbusinessesget
fromsecondarysourcesare neveractuallyaboutthe businesstryingtoget
the information,itmaybe a general exampleandcanactuallybe a badpiece
of researchforthe business because itmaynotanswertheirquestion
specifically.Anotherlimitationisthatthe informationthe businessgetsmay
be out-datedandnot applytothe currenttime line.Some of the research
that the businessconductsitself,suchassendingquestionnairestopeople
over40 that use theirshopmay be biased if thisisnot theirtargetmarket,
and theywill notbe gettingthe viewpointsfromthe peopleunder40 and
theymay alsoonlybe fromone area. Anotherlimitationisthatif the people
are askedquestionsinalaboratorysettingtheymaybe influencedtoanswer
accordingto what theythinkthe interviewerwantstohear,theymayfeel
uneasyandanswerdifferentlytothantheyusuallywould. Finallyitmaybe
hard for the businesstoreachthe correct groupof customersthattheywant
to getanswersfrom. For some formsof researchit maytake a lengthof time
or a sumof moneyforthe researchto be carriedout.
Market research methods
Tesco
Tescousesmany differentmarketingmethodstomake sure thattheir
businessmakesagoodamountof positive revenue fromtheiroperations.
Theywill mainly be tryingtomake sure that theyraise brandawareness.
Tescomay use such researchsuchas questionnaires andsurveys tosee what
theircustomersare thinkingaboutaselectedrange of productsandhow the

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productscan be improved.Tescomayalsolookbackat researchcarriedout
on theminthe past to see how far theyhave progressedoverthe yearsand
whatdecisionsof theirshave beenthe keytosuccess.Tescomaycarry out
researchto see the difference betweenthe costsof themusing resources
that are andare not renewableandwhichresource type ischeapertosupply.
Tescomay carry outresearchon theircompetitorstosee how well theyare
doing,theycan see whatproductsare gettinggoodrecognitionandmay
choose to promote theirproductsfromthis.Tescocan use advertisingspace
innewspaperstopromote the publicityof theirproductsandfromthisthey
are able toanalyse the increase insalesandprofitandsee whetheritwas
worthit. For example firstof all Tescomaysendout questionnairestosee
whethertheirapplesare goodenoughqualityforthe customers,andthen
theymay researchontheircompetitorstosee if theyare havinga better
salesbasis.AfterthisTescomaysee how well theirsalesof the producthave
beenoverthe yearsusingpreviousresearchcarriedoutonthe businessand
can use advertisingspace innewspaperstoraise brandawareness.Tescocan
use focusgroupsto try and findoutjust how satisfyingtheirfoodproducts
are.From thisTesco can associate whichof theirdifferentsizedstoresshould
have whichproductsinstock to satisfythe local customers.
CocaCola
Coca Colause differentresearchmethodstofind customersviewsof their
products.Firstof all Coca Colahave one mainproduct whichisthe Coca Cola
bottlesandthe Coca Colacans. One of the easiestwaystheycanget
feedbackontheirproductisby offeringconsumers the opportunitytofill out
a questionnairebasedontheirproduct,thiswaytheycansee what theyneed
to do to improve andwhethertheircustomersare satisfied.AfterthisCoca
Colacan review previousstatisticsonthe organisationtosee whattheyhave
done to improve the brandawarenessandprofitsandwhetheritis necessary
to do so again. Coca Colacan use focusgroups to getfeedbackonmarketing
campaignsbefore theyare launchedsoadaptionscanbe made so that they

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suitthe target marketbetter.Whendoingpromotionsinstore CocaColamay
use mysteryshoppersorobservationstosee whatpeoplethinkof the
promotionandwhatthe barriersare to buyingCoca Colainstore.