BTEC UNIT 9 - Reaching the market and market research (Market size (Most…
BTEC UNIT 9
Reaching the market and market research
Primary and secondary data
is obtained from customers themselves. E.g. interviews, questionnaires, focus groups.
is published information that already exists or another organisation has obtained. E.g. newspapers reports, online sources or journal report.
Most markets are quite complex and can be calculated in different ways…
By value - Finding out the total sales.
2.By product/brand – Could find out which are the most popular brands and If the market is segmented at all.
You can find out more relevant information for his own situation.
By customer – You could investigate customer’s behaviour and spending habits.
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Internal and external data
Bench marketing against competitors
This is a way of comparing one business with others on certain issues. For example, by checking a competitor’s website, you could see whether their product range, prices, delivery charges and customer return policies were better or worse than yours.
Producing a SWOT and PESTLE analysis
These are two different ways in which a business can examine its own position in the market. They let businesses asses how they could be affected by future trends and developments and then work out their possible response.
Pestle – a tool used to assess external influences on a business E.g., the economy.
Qualitative and quantitative data
explains why people hold certain views.
involves numbers such as statistics.
The uses of different types of data (quantitative and qualitative)
Most business obtain both types of data when they are carrying out research. This data should enable then to:
• Understand trends and make predication.
Some markets grow over time E.g. tablets sales have grown and desktop sales are falling.
• Identify areas of interest or gaps in the market.
Help to identify emerging customers’ needs that are not currently satisfied.
Market growth is important by rates vary. You could check the percentage change over time to identify whether growth is fast or slow. There are implications related to both fast and slow growing markets.
A fast-growing market
Offers opportunities for higher sales, greater sales revenue and more profit. This can attract powerful producers which can drive prices down. They can afford greater investment, making it harder for small firms to compare.
A slow growing market
Offers less immediate reward but involves fewer competitor’s challenges. Products can evolve based on customer’s feedback and new technological development. The focus can be on quality and prices are probably more stable.
New – old
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This is usually the percentage of the total sales of a product accounted for by one company but is sometime calculated by the number of outlets. You might want to find out which companies have the largest market share and why they are so popular.