UNIT 1 - MARKETING. AQA GCSE Business Studies. CONDUCTING MARKET RESEARCH. REASON 2 E nables businesses to identify what prices customers are willing to pay for products. REASON 3 Makes businesses aware of changes in consumer’s tastes and requirements. REASON 4
AQA GCSE Business Studies
Enables businesses to identify what prices customers are willing to pay for products.
Makes businesses aware of changes in consumer’s tastes and requirements.
Enables business to find out about their rivals (competitors) and identify the products they sell.
Indicates to businesses their target market (customers).
Collection of new data. Also known as field research
Ringing up customers to obtain their views.
Are small groups of people selected to give their views on a particular business issue, such as brand name, whether the business is better or worse than competitors, a proposed advert etc.
Many businesses have their own website and this provides an additional route for customer feedback. It is also possible to track the number of visitors to a website, how they found the site, what search engine they used – and this sort of information can provide a useful insight into potential customers.
People are asked questions about a certain product. Questionnaires can be by telephone or by post as well as face-to-face.
Visiting people’s houses and asking them questions on certain issues.
Collection of data that already exists.
Also known as desk research
The business must have a product that customers want, and for which they are prepared to pay for. The business may want to emphasise that the product is of a high quality, that it had particular design features, that it offers value for money, or perhaps that it will improve the consumers own image. Most importantly the business must make a profit – selling price must cover the cost of producing the product.
The business needs to know how much the customer is prepared to pay for the product, and what competitors charge. The price must also be one that enables the business to make a profit – will the price charged cover costs?
Place refers to the way in which products are distributed. Are they sold direct to customers (e.g. via the internet) or via shops? Do they come direct from the factory to the shop or are they bought by a wholesaler first? What are the stores like where they are sold?
The business needs to make sure that the customer knows about the new product and is encouraged to buy it. To inform customers about products, businesses use a range of methods, from word of mouth, adverts. To encourage the customer to buy the product, the business may offer a free gift, discount, or a BOGOF deal
Competitors products: What do they offer and how does it compare with what you have?
Target customers: Who you are trying to sell to? How much do they earn? Why are they likely to buy the product? What do they do with their time?.
Business approach: Are you trying to match what your competitors do?
The product: Is it distinctive? Is it a product that needs a unique design? How long does a customer expect it to last?