Market Research

Understand the importance of market research to a business. 

How market research can help a business to understand its customers and competitors may include:

• monitoring perceptions of business and its products/services over time
• gaining feedback on specific areas of business e.g. delivery costs compared to competitors
• gaining feedback on effectiveness of marketing efforts and customer awareness
• gaining insights from social media and media about what is being said about own business and competitors
• gaining insights into customer types and their buying habits
• gaining insights into market trends

How market research can be used to test new products and services may include:

• testing partly-developed products and services
• informing small-scale pilot
• testing viability of new ideas
• using insights to set prices
• identifying new opportunities
• gaining feedback on features and benefits
• asking testers to compare competitor products and services

Assessment Criteria

• 1.1

  Explain how market research can help a business to understand its customers and competitors.

• 1.2

  Explain how market research can be used to test new products and services.

• 1.3

  Explain how market research can help a business find new markets.

Understand market research methods.

How market research can help a business find new markets may include:

• understanding how target customers think
• adapting to needs of target customers
• identifying gaps in market
• identifying past successes and failures by competitors for similar ideas

Main methods used in market research may include:

• conducting surveys
• using focus groups
• using personal interviews
• using observation
• using trials
• use existing (secondary) research

Legal and ethical aspects to consider in market research may include:

• avoidance of invasion of privacy
• avoidance of stereotyping
• honesty and integrity
• objectivity
• carefulness
• openness
• social context bias
• respect for intellectual property
• confidentiality
• responsible publication
• data protection
• international law

Assessment Criteria

• 2.1

  Describe the main methods used in market research.

• 2.2

  Explain how the different methods are used for different purposes, audiences or situations.

• 2.3

  Describe legal and ethical aspects to consider in market research.

Be able to undertake market research.

How the different methods are used for different purposes, audiences or situations may include:

• surveys enable understanding of target market, e.g. potential market size, determining optimal price for products.
• focus groups elicit qualitative data and in-depth insights, e.g. feedback on products and services as well as beliefs, perceptions, customer attitudes and opinions
• interviews may be time intensive and costly so not suitable for those with little time or where the budget is low
• observation elicits detailed and actual information on what consumers do as they interact in a given market niche.
• trials can provide direct customer feedback on the product or service prototype while it is still in development. This feedback can be used to make changes to the product or service or determine optimal pricing.
• secondary research can be used to answer a new research question, or to examine an alternative perspective on the original question of a previous study

Assessment Criteria

• 3.1

  Select one or more methods appropriate for a particular piece of market research.

• 3.2

  Apply selected method(s) following appropriate procedures.