Unit 5:Marketing

and market
research
TASK 2: LO3 BE ABLE TO CARRY OUT MARKET RESEARCH
FOR BUSINESS OPPORTUNITIES
 P5: SELECT MARKET RESEARCH METHOD, TYPE AND TOOLS FOR A MARKET
RESEARCH PROPOSAL AND GIVE REASONS FOR THE CHOICE
WHAT IS THE PURPOSE OF MARKET RESEARCH
The purpose of market research is to help businesses understand what their customers wants, create products that those customers will purchase which will help them to maintain a
competitive advantage over other businesses within their industry. businesses will be able to have an insight on their customers opinions and interests and through the use of surveys
and focus groups, businesses can identify exactly what is needed to be in their product and what is irrelevant. The reason for market research is to take a look at the market related with
a specific good or service to find out how the consumers will receive it. This can find data gathering for the purpose of market segmentation and product differentiation, which then can
be used to produce advertising efforts or figure out which features will be most important and reliable to the customers.

2. EXPLAIN THE FOLLOWING METHODS OF RESEARCH

PRIMARY
Going directly to customers and asking questions and gather information. Examples of primary research are interviews where it is face-to-face and a more personal approach. Online
surveys are convenient and can be sent on emails. This is faster and easier way to receive data. Focus groups is used to collect data from a small group of people where businesses can
use this to identify niche market to learn about a specific group of consumers. And lastly, there' s observations where researcher observers the reactions of a subject and makes notes.
This is a good way to find a first impression of a business product truthfully.
SECONDARY
Research method that involves using already existing data. Existing information is summed up and grouped to build the overall effectiveness of research. Examples of secondary
research are information that is available on the internet which is free, easy and very quick to access. Public libraries is an easy way to find data and can find good sources that may not
be available on the internet such as important information and documents government publications with market statistics and large collection of business articles and newsletters.
Educational Institutions is another good source to obtain data from educational institutions for secondary research. This is not a very common way however, more research is conducted
in colleges and universities than any other business sector so businesses can find good information. Government and non-government organisations can be used to gather data from
some government and non-government offices. Commercial information sources are a great source to collect data as they are first-hand information economic developments, political
agenda, market research etc. Some examples of the sources, are radio, magazines, and newspapers,
QUALITATIVE RESEARCH
It is a primarily investigative research which is used to obtain an understanding of primary reasons, opinions, and motivations. An example is one-on-one interview where you conduct an
in-depth interviews. This way is very common and a better way as it is a personal interview and businesses will receive a more precise data on what customers want and their opinions
face-to-face. Focus groups is very common which is also used in qualitative research methods. Another example is ethnographic research which is the most in-depth method that
studies people in their naturally occurring environment. This is a great way to analyse the audience' s reactions realistically.
QUANTITATIVE RESEARCH
It is used to quantify the issue by method of producing numerical information or information that can be changed into usable statistics. Examples of quantitative research is Survey
Research, an observational survey, which is used to ask questions to an audience, using different types such as online polls, online surveys, paper questionnaires, etc. This helps
businesses understand what their customers think about their products and services, how well their new features are doing , and what else they could include in their market and other
such details. Another example is longitudinal surveys, which are also observational surveys, are conducted across various time durations to observe a change in respondent behaviour
and thought-processes. This time can be days, months, years, or even decades.
P6: CONDUCT PRIMARY AND SECONDARY RESEARCH TO IDENTIFY BUSINESS OPPORTUNITIES FOR A SPECIFIC BUSINESS 
PRIMARY RESEARCH:
OBSERVATION/FOCUS GROUPS, SURVEYS/QUESTIONNAIRES 
O f f i c e l u n c h e s w i l l b e a b l e t o i d e n ti f y th e i r c u s to m e r ' s n e e d s th r o u g h f a ce -to -f a ce e nco u nte r s a nd q u i ck o nli ne s u r v e y q u e st i on s w h e re sh e g a i n s a v a ri e t y of di ffe re n t opi n i on s, a n d a l so t h i s i s a ch a n ce for
B r e n t l e y a b l e t o h a v e a p e r s o n a l a p p r o a c h a n d s h e h e r s e lf c a n a s k h e r o w n q u e s ti o ns a nd f i nd a s o lu ti o n to h e r i s s u e s . T h i s w i l l h e r m a k e h e r fe e l con fi de n t on h e r re se a rch a s i t i s a ccu ra t e a n d m a k e a n a i m
t o t a r g e t i t a s h e r b u s i n e s s o p p o r tu n i ty w h i c h w i ll i n c r e a s e h e r cu s to m e r lo y a lty a s s h e i s li s te ni ng to w h a t h e r cu s to m e r w a nt s w h i ch pre se n t s h e r com m i t m e n t i n t o t h e bu si n e ss.
T E C H N O L O G Y - B A S E D ( E . G . S O C I A L M E D I A A N A L Y S I S , M O B I L E S UR V E Y S , O NL I NE CO M M UNI T I E S )  
I n m a n y r e c e n t y e a r s , m a j o r i t y o f c o n s u m e r s h a s s o m e th i n g te c h no lo g y -ba s e d w h i ch i s a m a j o r a d v a nta g e to 'Of f i ce lu nch e s ' a s t h e y cou l d u se a dd a qu i ck sh ort su rv e y a bou t t h e bu si n e ss w h e re i t i s posi t i v e
m a n y c o n s u m e r s w i l l s e e i t a t o n e p o i n t. B r e n tle y c a n f i n a lly h a v e a n u nd e r s ta nd i ng w h a t i s i t th e bu s i ne s s i s m i s s i ng f o r s a l e s t o i n cre a se . F or e xa m pl e , t h e re w a s a h i g h e r pe rce n t a g e t h a t t h e re spon de n t s
s a i d t h e r e w a s n o t a v a r i e t y o f f o o d f r o m o th e r c u ltu r e s w h i c h th e y p r e f e r r e d a nd Br e ntle y co u ld u s e th i s ne w f e a tu r e to a d d to h e r bu si n e ss fu l fi l l i n g t h e n e e ds of h e r cu st om e r.
P R O B A B I L I T Y S A M P L I N G - R A N D O M , S T R A T I F I E D , C L U S T E R , S YS T E M A T I C 
T h i s i s a g r e a t w a y f o r ' O f f i c e l u n c h e s ' to f i n d a c c u r a te d a ta f r o m r e s p o nd e nts . R a nd o m s a m p li ng h e lp Br e ntle y d i s co v e r th e di ffe re n t ra n g e of opi n i on s from pe opl e of di ffe re n t cu l t u re s a n d a g e w h e re sh e
w o u l d f i n d a l i s t o f i d e a s t o a d d to h e r b u s i n e s s i n o r d e r to m a k e i t th e be s t i t co u ld be . C lu s te r s a m p li ng i s a n e f f i ci e nt w a y t o col l e ct da t a a s i t re qu i re s fe w e r re sou rce s a n d h a v i n g a n opi n i on from t h e w h ol e
p o p u l a t i o n g i v e s ' O f f i c e l u n c h e s ' a b e tte r a p p r e h e n s i o n a n d w i ll h e lp e nla r g e th e bu s i ne s s to a w o r ld w i d e bu s i ne s s . S y s te m a t i c sa m pl i n g i s a n ot h e r g re a t sou rce for t h e bu si n e ss a s i t i s e a sy t o e xe cu t e a n d
u n d e r s t a n d a n d f i n d a s e n s e o f w h e r e th e y w a n t th e b u s i n e s s to be a nd w h a t th e i r a i m s a nd o bj e cti v e s , L i s te ni ng to 'Of f i ce l u n ch e s' cu st om e rs w i l l n ot on l y be a g re a t m a rk e t re se a rch bu t t h e e xpe ct a t i on
w i t h i n h e r c u s t o m e r s e r v i c e w i l l e n la r g e s i g n i f i c a n tly a s th e y a r e be i ng li s te ne d w h i ch m a k e s m o r e e m p lo y e e s f r o m o f f i ce s w a n t t o t ry t h e i r food ou t , t h e re fore i n cre a si n g sa l e s.
N O N P R O B A B I L I T Y   S A M P L I N G - Q U O T A , C O N V E N I E N C E , J U D G E M E NT
Q u o t a s a m p l i n g i s a m o n e y a n d ti m e s a v i n g p r o c e s s b y g i v i n g ' Of f i ce lu nch e s ' i m p o r ta nt i nf o r m a ti o n th a t w i ll be co ns i d e r e d u se fu l for t h e bu si n e ss a n d cou l d m a k e a m a ssi v e i m pa ct on t h e m . T h i s a l so a l l ow s
t h e B r e n t l e y t o h a v e a c l e a r i d e a o n w h a t s h e w a n ts to d o w i th h e r bu s i ne s s a nd be i ng o r g a ni s e d , h a v i ng a ce r ta i n a m o u nt o f su rv e y s j u st e n ou g h for t o h a v e a be t t e r u n de rst a n di n g on h e r cu st om e r's opi n i on
o n h e r p r o d u c t s . H o w e v e r , i f B r e n tle y d o e s n o t h a v e th e ti m e to d o s u r v e y s a s i t i s ti m e co ns u m i ng , s h e co u ld tr y th e co nv e ni e n ce sa m pl i n g a s i t i s ch e a p, e ffi ci e n t , a n d si m pl e t o i m pl e m e n t . T h i s i s a l so a w a y
t o f i n d a r e a l , t r u e r e a c t i o n a s th e s e c o n s u m e r s w i ll b e u n a w a r e o f w h a ts g o i ng o n a nd s u d d e nly tr y i ng s o m e th i ng o u t w h i ch i s g re a t w a y for B re n t l e y t o fi n d a fi rst - h a n d re a ct i on w i t h ou t pl a n n i n g o n
a n y t h i n g . N e v e r t h e l e s s , ' O f f i c e lu n c h e s ' c o u ld g o f o r a m o r e d i r e ct r o u te a nd j u s t a s k to a n e x p e r t i n th e f i e ld . T h i s w a y , Br e n t l e y w ou l d re ce i v e re a l i st i c opi n i on s e v e n t h ou g h i t m a y be bi a se d sh e k n ow s i t
w i l l m a k e a p o s i t i v e i m p a c t i n t h e f u tu r e . H o w e v e r , t h i s i s o n l y a n e x p e r t th e b u s i n e s s w i ll b e r e c e i v i n g d a ta w h i ch m a y no t f i t th e s ta nd a r d s o f o th e r co ns u m e r s a nd so i t m a y n ot h a v e a g ood i m pa ct t o t h e
b u s i n e s s a n d t h e y a r e n o t l i s t e n i n g to th e i r o w n c u s to m e r ' s o p i ni o ns w h o k no w s be tte r .
QUALITATIVE AND QUANTITATIVE QUESTION
Q u a l i t a t i v e q u e s t i o n i s a g o o d w a y f o r B r e n tle y to a s k m o r e p e r s o na l q u e s ti o ns a bo u t h e r p r o d u cts a nd bu s i ne s s o v e r a ll, w h e re sh e ca n be prov i de d w i t h i n - de pt h a n d de t a i l e d i n form a t i on w h e re sh e u se t h i s
t o c r e a t i n g a i m s f o r h e r b u s i n e s s t o a c h i e v e a n d b e c o m e s u c c e s s f u l. Q u a n ti ta ti v e q u e s ti o n a r e q u i ck a nd e a s y to a na ly s e w h a t co ns u m e r s th i nk a bou t t h e i r produ ct a s t h e t y pe of qu e st i on s a re cl ose d
q u e s t i o n s w h e r e B r e n t l e y w i l l o n ly r e c e i v e s i m p le a n s w e r s w h i ch i s m u ch e a s i e r a nd le s s ti m e co ns u m i ng a s s h e d o e s n 't h a v e t o g o t h ou g h a l l t h e con su m e rs' opi n i on s a n d t h e re su l t s ca n be e a si l y
s t a t i s t i c a l l y a n a l y s e d b y ' O f f i c e lu n c h e s ' a n d i d e n ti f y w h a t th e y ne e d to i m p r o v e o n a nd w h a t ne w f o o d th e y co u ld a d d to th e i r bu si n e ss.
HOW TO WRITE AND SEQUENCE QUESTIONS
T h e r e a r e d i f f e r e n t p r o c e s s e s w h e n f o r m u la ti n g a q u e s ti o n a s b u s i n e s s o w n e r s l i k e E l i z a b e t h B r e n tle y n e e d th i n k c a r e f u lly to co m e u p w i th a g o o d o ne . F i r s t Br e ntle y ne e d s to k no w e x a ct l y w h a t i n form a t i on
s h e i s l o o k i n g f o r , e . g . i t c o u l d b e th a t B r e n tle y w a n ts to k n o w w h a t h e r cu s to m e r th i nk a bo u t h e r d e s e r t o p ti o n. Once s h e k n ow s w h a t w h a t sh e i s se e k i n g for , sh e n e e ds t o t h i n k a bou t w h a t t y pe of su rv e y
s h e w a n t s t o g o f o r , s o B r e n t l e y s h o u ld g o f o r a f a c e - to - f a c e e nco u nte r a s s h e w i ll r e ce i v e a be tte r r e s p o ns e a nd a s k q u e s ti o n s t h a t a re m ore i n de t a i l e d t o b e c l e a r o n h e r i n f o r m a t i o n . I n te r m s o f ti m i n g , th e
m e e t i n g s h o u l d t a k e n o l o n g e r th a n 3 0 m i n u te s a s B r e n tle y w i ll j u s t be a s k i ng a bo u t th e co ns u m e r s ' p r e f e r e nce o n h e r f o o d a n d t h e opt i on s n e e de d. I be l i e v e B re n t l e y sh ou l d a sk qu a l i t a t i v e qu e st i on s a s sh e
c a n a s k w h a t e v e r q u e s t i o n s t h a t a p p e a r s to h e r d u r i n g th e m e e ti ng i f s h e f e e ls i t i s ne ce s s a r y to co lle ct m o r e i nf o r m a ti o n. A n ot h e r re a son w h y t h i s i s a be t t e r opt i on , i s be ca u se B re n t l e y cou l d fi n d ou t t h e
p u r p o s e o f t h e d e c i s i o n t h a t t h e y to o k s u c h , a s i f th e y s a i d th e y d i d no t e nj o y th e s a nd w i ch s e le cti o n, s h e co u ld f i nd o u t th e re a son w h i ch sh e cou l d u se ch a n g e h e r produ ct i n t o som e t h i n g be t t e r a n d su i t s
the customer needs. 
M E T H O D S O F R E S P O N S E ( E . G . L I K E R T , O P T I O N A L R O U T E S , O U T CO M E S )
A   L i k e r t S c a l e   i s a   t y p e   o f r a t i n g   s c a le   u s e d to m e a s u r e a tti tu d e s o r o p i ni o ns . T h i s i s a g r e a t w a y f o r 'Of f i ce lu nch e s ' a s i t a l l o w s o p i n i o n s a n d c a n b e e a s i ly u n d e r s to o d a s i ts n o t j u s t a s i m p le y e s o r no bu t i s
p r o v i d e d w i t h r e a s o n w h i c h w i l l c o m e u s e f u l f o r ' O f f i c e lu n c h e s ' a s th e y co u ld u s e th e s e r e a s o ns to e m be d i nto th e i r bu s i ne ss a n d be com e a be t t e r, i m prov e d v e rsi on t h a n be fore . T h e ou t com e s of t h i s i s t h a t
' O f f i c e l u n c h e s ' h a v e a s t r o n g r e s e a r c h o n th e i r b u s i n e s s w h e r e th e y h a v e co lle ccte d k e y d a ta w h i ch w i ll h e lp th e m to s u cce e d i n t o t h e bu si n e ss a n d be a w a re of n ot t o m a k e t h i s m i st a k e a g a i n .
Secondary research
Internal sources
T h i s a s s i s t s ' O f f i c e l u n c h e s ' h e l p r e g u l a t e t h e h i g h a n d l o w s o f s a l e s d u rin g a n a v e ra g e y e a r w h ich l in k s t o 'O f f ice
l u n c h e s ' s t o c k c o n t r o l s y s t e m s , w h i c h w i l l h e l p t h e m t o d i s c o v e r w h i c h p ro d u ct g o e s o u t o f s t o ck o r w h ich p ro d u ct s
does out of stock quickly and needs reordering frequently. Operating with loyalty cards aids 'Office lunches' to have
a b e t t e r u n d e r s t a n d i n g o f c o n s u m e r s ' h a b i t s a n d c a n u s e t h i s b y t a r g e tin g a d v e rt is in g a n d o rg a n is in g t h e ir p ro d u ct s
to expand more sales.
External sources
T h i s i n v o l v e s c o m m e r c i a l s o u r c e s w h e r e d a t a i s p r o v i d e d b y m a r k e t r e s e a rch co m p a n ie s . T h is m a k e s it e a s ie r f o r
' O f f i c e l u n c h e s ' a s t h e y d o n ' t n e e d t o m a k e t o o m u c h e f f o r t o n d i s co v e rin g t h e ir re s e a rch w h e n t h e y h a v e b e e n
p r o v i d e d i t a l r e a d y . U s i n g ' O f f i c e l u n c h e s ' c o m p e t i t o r s ' c o m p a n y r e p o r t s a n d w e b s it e s a s t h e y ca n p ro v id e d a t a t h a t
c a n a p p e a r t o b e u s e f u l a n d e f f i c i e n t f o r ' O f f i c e l u n c h e s ' b e c a u s e t h e y a re in t h e s a m e m a rk e t a n d w il l h a v e s im il a r
a i m s a n d o b j e c t i v e s . G o v e r n m e n t p u b l i c a t i o n s i s a n o t h e r c o n v e n i e n t w a y t o co l l e ct m a rk e t re s e a rch a s t h e y s u p p l y
a c c u r a t e i n f o r m a t i o n w h i c h a r e r e c e n t n e w s t h a t ' s u p d a t e d . C o n s t r u c t in g a ce n s u s s u rv e y s u cco u r t o a ccu m u l a t e
d a t a f o r s m a l l a r e a s t h a t m a y b e a v a i l a b l e , a s s u m i n g s a t i s f a c t o r y r e s p o n s e ra t e s a re a ch ie v e d . T ra d e p u b l ica t io n s
brings strong information to 'Office lunches' where they can use this to identify key facts that help them to increase
sales. Lastly where 'Office lunches' can obtain key data is public events, press releases and newspapers. Not only is
t h i s c h e a p b u t i t i s a f a s t w a y t o g a i n d a t a a s t h e y d o n ' t n e e d t o a r r a n g e a n y t h in g .
 M2: BASED ON OWN RESEARCH, ASSESS THE CHOICE OR MARKET RESEARCH
METHOD AND TYPE USED, EXPLAINING THEIR EFFECTIVENESS 

Primary research-Primary research helps a business like 'Office lunches' discover first-hand accurate information that is useful to the
business and use it to identify problems within the business and solve it increasing sal es. They coul d al so use this to cr eate aims and
objectives for their business and to achieve by listening to the respondents answers. Another r eason why pr imar y r esear ch is used is to
fill in the gaps in information that Brentley was not able to gather through secondar y r esear ch methods. The budget r equir ed for this
market research is very important as performing market research can be expensive so 'Office l unches' needs to think car eful l y which
research they will choose in terms of pricing depending on the setup or primary resear ch method used, as it may be too much for them
that will lead them into financial issues. During the research, Brentley needs to now about the time that wil l be spent thr oughout the
entire research it is important it is not too long or it will take a long time for 'Office l unches' to get somewher e. I n ter ms of the
participants, 'Office lunches' needs to think about the number and range of participants when choosing their r esear ch as it is impor tant
to know how many participants they need to know their information and if its enough. When deciding on their r esear ch, Br entl ey needs to
decides the location which depends on the participants, so she may want to perform it in the city as they ar e mor e consumer s that wor k
in places like offices to have a realistic response. To thank the participants for taking par t, 'Office l unches' shoul d pr ovide voucher s
which also an advantage for her as these participants will try more of their options and may r ecommend to other consumer s. When
recording the data, Brentley needs to know who will she share this data with as it has to be someone who is inter ested in the r esul ts l ike
her assistant and analyse it to draw highly evaluated results and conclusions.
Secondary research-Secondary research is a great method to use as it is more cost-effective than pri mar y  r esear ch  and it pr ovides a
foundation for any project. This helps create aims and obj ectives for 'Office lunches' as they have a cl ear view on what they have to wor k
on from their statistics and help them create a stronger business who knows what they'r e doing and showing that they'r e l istening to
their customers and their comments matter which increase their customer loyal ty. When pl anning these r esear ches, r esear cher l ike
Brentley doesn't need to worry about their budget as the resources are already avail abl e wher e it l eaves to Bentl ey finding appr opr iate
sources that suits to her standards and are useful. Using secondary research me ans that the r esear ch is fast and easy which is ver y
functional as 'Office lunches' will have a completed market research and having ever ything she wanted to know she can str aight away
start on her planning using these in her business and will increase sales quicker. The number of par ticipants used may r equir e mor e than
primary research as for secondary research, a lot of data needs to be studied to have enough for their r esear ch. Location for secondar y
research can be done anywhere if its completed online but with reports or newspaper can be pur chased fr om stor es. Fr om the aid of the
participants who have respectfully permit their sources to Brentley should receive fr ee sampl es of 'Office l unches' food of the entir e
collection. Permission will need to be required as the information doesn't belong to Br entl ey but someone el se and if she uses it, its
disrespectful and could get into trouble. When planning the market research, Bent l ey needs to shar e with her team her sour ces and what
she is planning to do as she could be given feedback on what else she could do.
 D1: JUSTIFY THE CHOICE AND SEQUENCE OF QUESTIONS USED IN THE MARKET
RESEARCH
An advantage of primary research is that this is collected first-hand and accurate which is useful to the business and wil l feel confident
with the data they have collected. This also makes it easier for 'Office lunches' to cr eate their aims and obj ectives as they r ecognise what
their consumers opinions are and make changes to the business to suit their nee ds and standar ds which then l ead Br entl ey's business
have an increased customer loyalty and sales will rise up in which they can use that to add new featur es into the business. Another
benefit is with primary research, researchers like Brentley are able go in depth of a matter and study al l for eseeabl e options that suits to
their needs. This enables Brentley to have a higher level of control over how the inf or mation is col l ected can decide on such issues as size
of project like the amount of responses given, the location of research, and time fr ame for compl eting the pr oj ect. This is a convenient
method for 'Office lunches' as they could ask questions they have in mind and receive detail ed r esponses l ike the type of food consumer s
enjoy and their opinions on their food. Although it is expensive to conduct and takes a l ot of time, 'Office l unches' wil l however have the
result that will make a massive impact to the business as it has information on making the business successful so the money and time
brought into this research will all be worth it because the money used is allowing Br entl ey sear ch wisel y and contr ol ever ything to her
own needs so it is seen as efficient spending. However a disadvantage is it can be quite ex pensive and time- consuming which 'Office
lunches' may not be able to afford seeing as their sales have decreased and using this r esear ch may l ead them into financial issues. The
time spent for the research takes a long time to complete if it involves face-to-face contact with customer s as the meetings needs to be
arranged and then going through all the sources to see which is the most accurate.  The benefits for secondar y r esear ch is most of the
information is readily available. There are many sources which can be relevant to 'Office l unches' unl ike pr imar y r esear ch, wher e data
needs to be collect from scratch which can be time-consuming. This leads to ano ther benefit of being l ess ex pensive and a l ess time-
consuming process as the information required is available and doesn’t cost much. This is gr eat for businesses l ike 'Office l unches'' who's
sales have decreased and is struggling with financial issues as with secondary re sear ch, r esear cher s themsel ves can find data onl ine.
However, a drawback to secondary research is although the data is already avail abl e, Br entl ey need to check whether the sour ce is
accurate which can take some time going through all her data to check whether its tr ue and avail abl e to use. Another dr awback is the
time received from the data as some of them are not updates even though they're accur ate.