Additional Teacher Resource Pack Market Research and Segmentation © Copyright Classroom Video Limited 2009. This teacher resource pack is copyright of Classroom Video Limited and may not be amended, reproduced or resold in any way without gaining written permission from Classroom Video Limited. 0117 929 1924 0117 930 4345 www.classroomvideo.co.uk Market Research and Segmentation Introduction The programme clearly defines market research and segmentation techniques. Marketing theory is explained and relevant examples, including the computer-game producer “EA”, are used to demonstrate the importance of research and segmentation within business. Market research and segmentation are two fascinating topics used widely in business today. The programme examines why businesses use these techniques, the benefits they bring and the difficulties involved. This programme provides a clear explanation of the main methods of research available to business, quantitative and qualitative, as well as highlighting the importance of sampling techniques and effective questionnaire design. The programme also reveals the main approaches used by businesses when segmenting their markets to identify their main target markets. Demographic, Geographic and Psychographic techniques are examined, with clear examples of their business applications. DVD Timeline 00:00 – 06:15 06:16 – 08:35 08:36 – 12:26 12:27 – 15:20 15:21 – 17:50 17:51 – 19:15 Market research Field research, quantitative and qualitative research Desk research methods, advantages and disadvantages Market segmentation Alternative methods of segmenting the market End and Credits Other Background Information for Teachers Market research is a method of collecting data which will make a business more aware of how the people, they hope to sell to, will react to their products or services. Market research will answer questions like: • • • • • • • • Whether the products or services are needed Who might want to buy the products - (you may have defined the wrong type of person) What age, sex, income occupation etc are the people they want to sell to If there are changes taking place and how this might affect what they sell - (there might be an up an coming decline in the demand for what they are about to sell) How well the products or services might sell - (It could be better or worst than predicted) How much demand there is for products and services - (they may need to increase or decrease production depending on the results) Who won’t buy what they hope to sell - (this will help the promotional plan as it enables you to target the right people) What price would people be prepared to pay - (this will help when you set out your pricing policy) 2 Market Research and Segmentation Curriculum Links KS4 – GCSE Business Studies 5.1.4 Markets and Consumers, Satisfying customer needs. Consumer and Industrial Market, Segmentation. Market Research, Primary and Secondary Research. Methods of Research. Data presentation and data analysis. Marketing Techniques, Marketing Mix, Pricing Techniques, Promotional Methods, Distribution Methods. KS4 – GCSE Leisure and Tourism Unit 2 Sales, Promotion and Operations in Leisure and Tourism Market segmentation and target marketing: age gender social group lifestyle ethnicity location. KS4 – BTEC First in Business Unit 9 Exploring Business Enterprise Marketing and sales: reaching and retaining customers; marketing information; market research; analysing and meeting customer needs; competition; building customer relationships; cost and price of products or services; promoting products or services; KS5 – GCE AS Business Studies 3.5.1 Identifying and anticipating customer needs Marketing mix KS5 – BTEC National in Business Unit 3 3.1 3.2 3.3 3.4 Introduction to Marketing Understand the concept and principles of marketing and their application in the business environment Know how and why marketing research is conducted by organisations Understand how marketing information is used by organisations Understand how marketing techniques are used to increase demand for products (goods and services) 3 Market Research and Segmentation Useful Web Resources http://tutor2u.net/business/marketing/what_is_marketing.asp Excellent educational resource for teachers of business education American Psychological Association Website on Anger http://www.cim.co.uk/ Website of the Chartered Institute of Marketing http://www.adassoc.org.uk The Advertising Association http://www.bized.ac.uk Business education website including learning materials and quizzes http://www.cim.co.uk The Chartered Institute of Marketing Related DVDs available from Classroom Video Ltd How the Kids Took Over Marketing - An Introduction What is Marketing? Please contact customer services on 0117 929 1924 or visit www.classroomvideo.co.uk to see our full range of titles and buy online. Activities for before Viewing the Programme 1. Brainstorm the different things McDonalds would want to research before launching a new kind of Happy Meal. 2. In pairs write down the methods of research McDonalds could use to find out that information within two minutes. 3. Group activity – discuss which types of income groups the main UK supermarkets are aimed at. Feedback the information to the class. 4. Group activity – examine a local newspaper to identify which advertisements are aimed at which types of customers. Feedback the information to the class. 4 Market Research and Segmentation Student Worksheet During the Programme 1. What is defined as “the systematic collection and evaluation of data regarding customers’ preferences.” _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 2. What kind of research identifies what currently happening in the market? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 3. What kind of research tries to identify future trends? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 4. Give an example of quantitative research _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 5. Give an example of qualitative research? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 5 Market Research and Segmentation 6. How did EA conduct market research into children’s attitudes to their new Harry Potter game? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 7. Why do companies carry out market research before launching a new product? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 8. State two common methods of Primary (or Field) research. _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 9. Desk research involves the use of secondary data. True or False? _____________________________________________________________________________________________________________ 10. State two advantages of field or primary research? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 11. State two advantages of desk research? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 12. What is the business word for “dividing a market up into different groups, each of whom may have different needs”? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 13. What is the potential disadvantage of segmenting your market? _____________________________________________________________________________________________________________ _____________________________________________________________________________________________________________ 6 Market Research and Segmentation Activities for after Viewing the Programme 1. In pairs, plan the field research (primary data) you need to carry out before launching a new product of your choice. Include a survey and a focus group. 2. Use the internet to carry out some desk research. Try competitor websites, your company’s web-sites, directories, government websites such as http://www.statistics.gov.uk/default.asp. 3. Word process a report which summarises your market research results, 4. Decide which market segments will want to buy your new product. Design a marketing campaign (adverts, logos, packaging, sales promotion) which is clearly aimed at that market segment. 7 Market Research and Segmentation Wordsearch H T I R C E T N H S S S E N M C U S T O M E R S R R R Y Y A N I I A A U O B S E R V A T I O N R G S R G A A U A G N D V E N E C M P D T M R O E N T I R I O R N O E M Y Words to find: Research Secondary Sampling Customers Segmentation Survey Random Primary Observation Target 8 T E L L R R G E O S G M E U S M P R M M N C M R T R A D S M E G I A E M O M Y H C R A E S E R S O G H N E M H S R E N T Market Research and Segmentation Suggested Student Responses 1. What is defined as “the systematic collection and evaluation of data regarding customers’ preferences.” Market research 2. What kind of research identifies what currently happening in the market? Explanatory or descriptive research 3. What kind of research tries to identify future trends? Predictive research 4. Give an example of quantitative research Data capable of numerical analysis Average amounts/prices etc trends 5. Give an example of qualitative research? One-to-one in-depth interviews Focus groups Attitudes/ motivations 6. How did EA conduct market research into children’s attitudes to their new Harry Potter game? Invited children into the company to play the games and get feedback/ attitudes 7. Why do companies carry out market research before launching a new product? To reduce the risk of the product failing 8. State two common methods of Primary (or Field) research. Observation Survey Focus group 9. True Desk research involves the use of secondary data. True or False? 10. State two advantages of field or primary research? Up-to-date You are able to control/plan the research to meet your needs Reliable 11. State two advantages of desk research? Quick Easy to access (it already exists) 12. What is the business word for “dividing a market up into different groups, each of whom may have different needs”? Market segmentation 13. What is the potential disadvantage of segmenting your market? 9
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