Lesson Element Unit 5: Marketing and market research Interpreting and presenting market research findings Instructions and answers for tutors These instructions cover the learner activity section which can be found on page 9. This Lesson Element supports Cambridge Technicals Level 3 in Business. When distributing the activity section to the learners either as a printed copy or as a Word file you will need to remove the tutor instructions section. The activity In this lesson element, learners will be provided with data collected from a market research questionnaire. Learners should assess the reliability and validity of the data, analyse how the accuracy could be improved and then discuss how best to present the findings. As a tutor you could lead them through this step by step as preparation for individually completing LO4. Suggested timings The lesson element is supported by a worksheet which has 15 questions/areas for discussion. The worksheet is expected to take 6 hours to complete (including input from the tutor) ABC – This activity offers an opportunity for English skills development. Version 1 1 Copyright © OCR 2015 Activity 1 For this activity, learners are required to consider the market research findings provided in the document ‘Market research data’ to answer the questions on the Lesson Element worksheet. By discussing their ideas with their peers, either in pairs or in groups, they should begin to formulate their own opinions of how to ensure that market research information is reliable and valid and then be able to assess the most appropriate methods of presenting this data. Please note: the information in the market research findings is not based on fact. The questions and findings have been formulated to ensure that learners can identify potential issues within the information. Task 1 The information required is included on pages 3 to 9 ‘Market Research Data’. The questionnaire is given, followed by the findings of this research. The research is divided into 2 sections; primary research and secondary research. For Tasks 1-10 it is the primary research section that learners should be guided towards. OCR Business for A level – 26 Jun 2015 by Andy Mottorshead, Judith Kelt, Alex Grant Hodder Education Chapter 52: ‘Identifying customer needs – market research analysis’. Version 1 2 Copyright © OCR 2015 Market Research Data A UK company which offers a range of brands, many of which are sold in major supermarkets are planning to expand their range by introducing a new coffee brand. The marketing team have undertaken market research to gain an understanding of the needs and wants of consumers. The questionnaire below has been completed by 1000 customers in supermarkets and convenience stores in the Yorkshire and Lincolnshire areas. Researchers asked 100 people in each store to complete the survey although 126 questionnaires were either incomplete or were not taken seriously by the respondent. Primary Research 1. What is your postcode? …………………..……………………. 2. Age category 15-20 21-30 31-40 41-50 51-60 61+ 3. Are you? Male Female 4. How often do you buy jar/packet coffee? Version 1 Weekly Monthly Never Other 3 Copyright © OCR 2015 5. Which brand of coffee do you usually buy? …………………………………………………………...……………………… 6. How do you choose which brand of coffee to buy? I buy the one on offer I always buy the same brand I always buy the cheapest I always buy the most expensive Other – please state …………………………………………………….. 7. On a scale of 0-10 (where 0 is not important and 10 is very important) how important to you is the advertising that you have seen when choosing coffee? Please circle your answer. 0 1 2 3 4 5 6 7 8 9 10 8. Which form of advertising would you take the most notice of when choosing coffee? Television Billboards Leaflets in store Radio I don’t Other – please state …………………………………………………….. 9. How much would you be willing to pay for a 200g jar of premium coffee? Version 1 £1.50 - £2.00 £2.01 - £2.50 £2.51 - £3.00 £3.01 - £3.50 £3.51 - £4.00 £4.01+ 4 Copyright © OCR 2015 10. What special offers would attract you to try a new brand of coffee? Please tick all that apply. 2 for 1 Buy one get one half price 25% off A competition to enter after purchase Other – please state. ………………………………………………………. Questionnaire results: Question 1: All respondents lived within 10 miles of the store in which they were surveyed. Question 2: 15-20 92 21-30 163 31-40 249 41-50 157 51-60 84 61+ 129 Question 3: Male 236 Female 638 Question 4: Weekly 265 Monthly 347 Never 59 Other 203 Version 1 5 Copyright © OCR 2015 Question 5: Sainsbury’s own label 71 Asda own label 58 Waitrose own label 32 Morrison’s own label 52 Budgen’s own label 6 Marks & Spencer own label 17 Aldi own label 43 Lidl own label 35 Tesco own label 70 Tesco value 38 Sainsbury’s basics 25 Nescafe 127 Nescafe Gold Blend 45 Carte Noire 24 Kenco 36 Kenco Millicano 12 Dowe Egberts 84 Decaffeinated 7 Powdered 54 Maxwell House 10 Café Direct Dowe Egberts decaffeinated 6 12 Kenco Rich 2 Cappuccino 6 Nisa 2 Version 1 6 Copyright © OCR 2015 Question 6: I buy the one on offer 189 I always buy the same brand 243 I always buy the cheapest 216 I always buy the most expensive 72 Other – Like the packaging 24 Recommended to me 67 Seen it advertised 63 Question 7: 0 56 1 92 2 84 3 103 4 42 5 155 6 93 7 114 8 76 9 54 10 35 Version 1 7 Copyright © OCR 2015 Question 8: Television 397 Billboards 40 Leaflets in store 236 Radio 98 I don’t 72 Other – Cinema 8 Not sure 5 Word of mouth 18 Question 9: £1.50 - £2.00 377 £2.01 - £2.50 259 £2.51 - £3.00 82 £3.01 - £3.50 78 £3.51 - £4.00 31 £4.01+ 47 Question 10: 2 for 1 842 Buy one get one half price 568 25% off 276 A competition to enter after purchase 214 Other – Free gift 92 Win a holiday 1 Cash back 7 Free trial Version 1 29 8 Copyright © OCR 2015 Secondary Research The marketing team also used the internet to research the UK coffee market. 1. British Coffee Association http://www.britishcoffeeassociation.org/about_coffee/coffee_facts/ 2. http://www.coffeechoiceguide.co.uk/coffee-brands.htm 3. http://www.coffeejudge.co.uk/coffee-league-table Version 1 9 Copyright © OCR 2015 Task 2 a) Ask your learners to consider the good and bad points of the structure of these questions e.g. are they open ended or closed questions? Are sufficient options given? Examples of points which may be raised include: Question 2 has an option £1.50 - £2.00. This is a very low price for a 200g jar of coffee, especially a premium coffee. It is likely that some respondents will tick it because it is the lowest priced option. This could skew the responses i.e. if the lowest price was £2.51 - £3.00 they would tick this figure. The lowest figure needs to be realistic and a cost-effective price for Unilever. Question 4 has an option for ‘other’ but if this is ticked there is no requirement to state how often coffee is bought. Question 5 is very open-ended which is supported by the range of results. Question 10 requires respondents to ‘tick all that apply’. This has resulted in most respondents ticking a range of options. Asking them to tick the most significant two, for example, might have been more appropriate. b) Ask your learners to then recommend improvements based on the points which they have identified. Justifying their reasons should help to develop their skills prior to undertaking LO4. By monitoring each group’s progress you will have the opportunity to ask ‘what if..?’ questions to prompt discussion. https://www.surveymonkey.com/mp/market-research-survey-templates/ This website provides survey templates for businesses to use for a range of different purposes. https://www.tes.com/teaching-resource/good-and-bad-questionnaire-examples-6229099 This resource gives examples of ‘good’ and ‘bad’ questionnaires. http://www.bbc.co.uk/schools/gcsebitesize/maths/statistics/questionnairesrev2.shtml This resource gives examples of poor survey questions. This will also be useful for Task 3 below. Task 3 a) Ask your learners to consider the findings of the market research survey to decide whether appropriate information has been collected i.e. will it enable Unilever to make informed marketing decisions? Examples of points which may be raised include: Version 1 10 Copyright © OCR 2015 We don’t know where the stores were located. Were they all close together or were they spread out between the two counties? We don’t know what ‘other’ means. It could be daily, annually, every two months etc. As a result the information isn’t very useful, for example if Unilever were trying to forecast likely sales of the new coffee. As basic information this is useful, however we don’t know the reasoning behind these decisions. For example, someone might buy the most expensive because they perceive this to offer the best quality. Why do some people always buy the same brand? What could be done to attract them away from this to try a new product? http://www.audiencedialogue.net/kya3c.html This article provides advice on how to write and structure questionnaires to maximise the likelihood of appropriate, useful data being collected. This is subjective information – one respondent might interpret a ‘3’ rating in the same way as another respondent rates a ‘5’. Version 1 11 Copyright © OCR 2015 Although this data clearly identifies that Nescafe is the most popular brand, the respondent’s interpretation of the question could have caused inaccuracies. For example: 71 respondents stated ‘Sainsbury’s own label’ and 25 ‘Sainsbury’s basics’ – there is a possibility that come of the 71 who said Sainsbury’s own label actually buy their basics brand. Similarly 54 respondents stated ‘Powdered’ but this doesn’t tell us what brand of powdered coffee. Although Nescafe overall was the most popular brand, some of the respondents stating ’Nescafe’ could buy ‘Nescafe Gold Blend’ but didn’t make this distinction in their answer. b) Ask your learners to think about the factors which will affect the usefulness of the information in the decision making process and then make recommendations as to improvements which could be made to the wording of the questions. Providing them with examples of market research questionnaires will help them to think about how the questions could be improved as well as to identify any additional questions which would improve the usefulness of the data. The resources listed for Task 2 should also be useful in the delivery of this task. Task 4 Your learners need to be aware of the reasons why a questionnaire might not be useable once it has been completed. Finding or producing your own examples of surveys which would not be acceptable will provide a starting point for their discussions. http://woodwardblade.com/1573/opinion/to-survey-or-not-to-survey/ This article refers to some of the answers provided by students to a questionnaire which their school asked them to complete. In the context of this task, 126 questionnaires are 12.6% of the respondents which is a significant proportion. Version 1 12 Copyright © OCR 2015 Task 5 You could recap with your learners the sampling techniques which are available to businesses prior to asking them to identify which technique they believe was used in this instance. Random sampling is a fair judgement based on the information provide although other options, if well-justified, are acceptable. Possible responses include: 1000 respondents were asked to complete the survey. It could be argued that the sample size should have been larger, particularly as this was conducted in only 10 stores. The demographics/socioeconomic groups in different locations vary and therefore an appropriate range of shoppers may not have been surveyed e.g. the sample was mainly female and aged 31-40. Similarly, the survey was carried out in only 2 counties, which geographically border each other, which may not be representative of the whole country. Tasks 6 & 7 You should discuss with learners the definitions of reliable and valid in terms of market research. These are given in the delivery guide for this unit. This will enable them to then draw conclusions as to how reliable and valid they believe that data to be. http://www.knowthis.com/marketing-research/research-validity-and-reliability This article contains further information about the distinction between valid data and reliable data. Version 1 13 Copyright © OCR 2015 Task 8 You could use examples to explain to learners the methods of simple statistical analysis such as mean, median and mode. Examples can also be used to illustrate that they may need to be selective as to which is used depending on the data which is available to them. https://www.purplemath.com/modules/meanmode.htm A worked example of each method of simple statistical analysis. Task 9 You should guide your learners to list the limitations of the research undertaken by Unilever. Learners will need to draw on points which they have already considered for this Lesson Element and then make recommendations for further research. You could task each group to consider one limitation and their recommendation and discuss this as a whole class prior to completing the full task. Task 10 Your learners could complete this task using either graph paper or a computer. They should be encouraged to use all four presentation methods for each question listed on their worksheet. Once they have produced their charts/graphs you could then reflect on whether the findings ‘make sense’ using every method or whether some presentation methods may confuse the audience. For example, presenting the data for Question 5 as a radar chart is could be confusing whereas presenting it as a bar chart should be much clearer to interpret. https://www.youtube.com/watch?v=aBV2vvTFI84 J Fox How to Make a Bar Graph in Microsoft Excel 2010 - For Beginners This is a step by step guide which learners may find useful. The same steps can be used to insert the data for other forms of graph/chart. Version 1 14 Copyright © OCR 2015 Task 11 You could recap with learners the advantages and disadvantages of using secondary research in the decision-making process. You could use this to lead into a discussion about the secondary research findings which are included on the ‘Unilever market research’ Word document. a) Your learners should consider the strengths and weaknesses of the information provided. b) Ask your learners to then build on this by recommending areas for further secondary research. c) As an extension activity you could set learners the task of finding examples of information which would be useful to Unilever in this scenario. Possible weaknesses which could be identified are: Coffee Choice Guide – the information is based on a report produced in 2007, as a result it is likely to be out-of-date. British Coffee Association – this lacks specific, useful detail which could be used in the decision-making process. Coffee Judge – it is unclear what the source of this information is and therefore it would be difficult to check the reliability and validity of the data. It also includes a large number of coffee brands which would not be bought from a supermarket and therefore these would not be direct competition for the new Unilever product. http://businesscasestudies.co.uk/jd-sports/using-market-research-to-support-decisionmaking/secondary-market-research.html#axzz3kldyempS This case study explains the secondary research undertaken by JD Sports. Version 1 15 Copyright © OCR 2015 Task 12 4.3 of the teaching content identify the presentation methods which learners should be familiar with. You could task learners with researching the format of reports and summarising what they believe to be the do’s and don’ts of verbally presenting information. This could be done individually or you could divide the class into two groups, one considering reports and one presentations. http://www.skillsyouneed.com/present/presentation-tips.html This resource considers how to prepare and perform an effective presentation. http://www.lboro.ac.uk/service/ltd/campus/reportwr.pdf Advice on how to structure a written report. We’d like to know your view on the resources we produce. By clicking on ‘Like’ or ‘Dislike’ you can help us to ensure that our resources work for you. When the email template pops up please add additional comments if you wish and then just click ‘Send’. Thank you. 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Please get in touch if you want to discuss the accessibility of resources we offer to support delivery of our qualifications: resources.feedback@ocr.org.uk Version 1 16 Copyright © OCR 2015 Lesson Element Unit 5: Marketing and market research Learner Activity Interpreting and presenting market research findings In this lesson element, you will be provided with data collected from a market research questionnaire. You will need to assess the reliability and validity of the data, analyse how the accuracy could be improved and then discuss how best to present the findings. This will provide you with an insight into the requirements of LO4. Version 1 17 Copyright © OCR 2015 Activity 1 Task 1 Read the information and the market research findings included in the document ‘Unilever Market Research’. OCR Business for A level – 26 Jun 2015 by Andy Mottorshead, Judith Kelt, Alex Grant Hodder Education Chapter 52: ‘Identifying customer needs – market research analysis’ Task 2 a) Analyse the format/structure of the questions included in the survey. b) Recommend improvements to the format/structure of the questions. Justify your reasons for making these recommendations. Task 3 a) Analyse the usefulness of the questions i.e. has appropriate information been collected? b) Recommend improvements to the wording of the questions and write any additional questions which you think are needed in order to make accurate decisions. Task 4 Do you think that it is an issue that the results of 126 surveys cannot be used? Explain your answer. Task 5 Is the choice of sample appropriate? Can you identify any issues? Task 6 Overall, do you think that the findings are reliable? Justify your opinion. Task 7 Overall, do you think that the findings are valid? Justify your opinion. Task 8 Statistical analysis is one method of presenting and interpreting findings. Give an example of when mean, median and mode could be used within the interpretation of market research findings. Version 1 18 Copyright © OCR 2015 Task 9 a) List any limitations of the research carried out which Unilever should to be made aware of. b) For each limitation which you have identified, recommend additional market research that should be carried out and suggest appropriate market research methods for this. Task 10 a) Present the findings of Questions 4, 5, 9 and 10 using each of the following data presentation methods – pie chart, bar chart, line graph, and radar chart. b) For each question which do you think is the most appropriate method to present the information? Explain your answer. Task 11 a) What are the strengths and weaknesses of the secondary research results? b) Recommend areas for further secondary research. Task 12 What are the strengths and weaknesses of using written reports to present the conclusions drawn from market research findings compared with using presentations for this purpose? Version 1 19 Copyright © OCR 2015