Market Research
Learning objectives for today
• To be able to differentiate between
the advantages and disadvantages
of Niche and Mass Market.
• To be able to segment a market for a
product.
Define Mass Market.
Mass Market
Mass Market is where there is a very
large number of sales of a product.
No market segment differences and
focuses on the whole market population
Niche Market
Niche Market is a place where specialized
products are sold to a small segment of a
larger market
Examples
Advantages of Mass Market
•
•
•
•
•
Sales
economies of scale
Risk
Opportunities for growth
Demand of product
Disadvantages of Mass Market
• Competition
• Advertisement cost
• Standardized Product
Disadvantages of Niche Market
•
•
•
•
•
Sales
Risk
Opportunities for growth
Demand of product
Dependent on one product
Advantages of Niche Market
• Competition
• Advertisement cost
• Specialized product
Activity
Room 1 : Advantages of Mass Market
Room 2 : Disadvantages of Mass market
Room 3 : Advantages of Niche market
Room 4: Disadvantages of Niche Market
Case Study
Task 1
Bradbury makes luxury hand made chocolate
aimed at high- income customers. It is a
______________Market.
1.Define the same:
2.Identify and explain two factors that might
affect the demand for Bradbury’s products.
Market Segments
What they are
How markets are segmented
What is it?
Market Segments = identifiable sub- group of
buyers in the whole market in which
consumers have similar characteristics or
preferences.(similar buying habits)
The way a business segments its market
depends on the product being sold and the
customer
Task
 You have been given a picture of a product.
 With this product you have to prepare showing all
the market segments that it is aimed at or appeals
to.
 Do not forget to include all the aspects that we
talked about.
How many different ways can you
think of to segment a market to start
your business?
How To Segment the Market
Age
Gender
Income
Area
Ethnicity(tradition, language, etc)
Religion
Socio-economic group (according to job)
Group A
(Mass market)
Group B
(Niche Market)
Padlet
1.
Which market has no segmentation?
2.
A benefit of mass marketing is that there is
less competition in the market? True/False
3.
Give one example of Niche market, which
we have’nt yet discussed in the class.
4.
Demographic segmentation
include…….(any 2)
Learning objectives for today
• To be able to differentiate between
the Product and Market oriented
business.
• To be able to analyse the importance n
need of market research
Let’s think….
• Why would organisations
segment the market?
• Who is the king of the market?
Issues when segmenting the market
• Lack of information and data
• Difficulty in measuring and predicting
consumer behaviour
• Hard to reach customer segments once
identified
MARKET V PRODUCT ORIENTATION
Example
MARKET ORIENTATED AND
PRODUCT ORIENTATED BUSINESSES
Product Oriented
Market Oriented
Task 1
Jonathan invents a new tool for planting seeds. It is much
easier to use than existing tool. However, it has high
manufacturing cost, twice as much as existing tool.
a. What would you advise Jonathan to do before he starts to
manufacture the tool?
Market Research
Market Research
Market research is the process of gathering,
analysing and interpreting information
about a market. Eg: Amazon, Diet coke
Market Research connectives
Secondary data, analysing, collecting,
interpreting, Primary data, through
collection of.
Market Research is the
process of
…………………..
…………………..
…………………..
The Need for Market Research
Group Activity:
You are launching a new brand. You decide to do
market research and what are the points to think
about?
•
•
•
•
•
•
•
Is my product a need in the market?
Will the consumer buy my product?
What type of customers will buy my products?
What features do they like/dislike
How much are they willing to pay for my product?
What type of promotion will be effective?
What is the competition like?
Issues of conducting Market Research
In pairs, list as many potential problems a
business may have when completing market
research.
Can you offer any solutions to these problems?
Stages of market research
Designing the research
– primary or secondary?
Carrying out research –
Face to face, online, telephone,
discussions etc
Analysing the information –
qualitative or quantative
Market research methods
Market research methods
Surveys
qualitative
Mystery
shoppers
Discussions
Observations
Interviews
Focus Groups
Primary Research/
Field Research
Secondary Research/
Desk Research
Primary research
Do you know what the possible sources of
primary research could be?
Sampling
Small section of population is asked a number of questions or
is given opportunity to use a sample of product to indicate
what whole population would think about product
• Methods
– Quota sampling – asking people who have certain characteristics
(e.g. aged between 18-25)
– Random sampling – everyone has an equal chance of being
asked a question
– Stratified sampling – population is segmented by a common
characteristic
– Cluster sampling – target population is divided into groups
(normally by geographical region) and random sample taken
from these groups
Secondary research
Do you know what the possible sources of
secondary research could be?
Which Is
Not An
Examples of
Secondary
Market
research?
Population
Census
Financial
Times
Past sales
data
Postal
questionnaire
results
Company
Annual
report
Bank of
England
Inflation
Report
Internet
Product trial
Focus group
A market research Annual
agency report
government
population
statistic
Daily news
article on
competitor’s
new product
News
Weight of
papers/books/jour students of
nals
our class
Number of
plants in our
locality
Number of boys
and girls
website
Sales
department
monthly
sales figure
Learning objectives for today
• To be able to analyse the various
methods of primary and secondary
research.
• To be able to comprehend the qualitative
and quantitative data in the market
research
Questionnaire
Pros N Cons
1.Which subject you face more difficulty in?
2. Do you think the impact of covid will effect your career?
3. On a scale of 1-10. Do you agree or disagree with the
following?
a.I am getting more time to finish my given work…..
b.I waste my time by not using it efficiently in a day…..
4. How easy is the analysis part in the question
Interview
Pros N Cons
Focus Group
Pros N Cons
Observation
Pros N Cons
Assignment
Prepare a questionnaire of 10
questions on the topic
PANDAMIC(COVID-19)
Sub title:……………….
SHOP - A
SHOP - B
SHOP - C
1.Which shop you liked the most and would you like to come to
this Ice – cream shop again?
2. Do you think there should be a change in the interior to attract
the customer?
3. On a scale of 1-10. Do you agree or disagree with the
following?
a.I enjoyed the ice cream flavour…
b. I will recommend my friends for sure…..
c. I will surely come again
4.How happy you are with the quality of ice cream?
Good
Better
best
Quantitative research is data about facts that can be
statistically analysed, counted, measured and
expressed using numbers.
Descriptive and conceptual
Qualitative data is data about opinions.
Based on traits and characteristic(Why?)
Question
Why do you shop at Tesco?
Do you visit the cinema frequently,
sometimes, or never?
What do you think of Marks and
Spencer’s decision to charge customers
for carrier bags?
In what ways could your bank improve its
customer service?
Which do you prefer – Sprite or Pepsi?
Qualitative/Quantitative