Primary Market Research (AQA AS Business): Revision Note

Primary marketing research

• Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys and interviews

  • The acquired information is new and does not necessarily exist in any format

• Businesses can choose from a range of primary marketing research methods and may combine a selection of methods to obtain comprehensive first-hand data

Surveys

• The most widely used method for gathering primary research data is sampling through surveys

  • A series of questions are posed to a certain number of people (respondents)

  • The results from the "sample" are used to make inferences, which tare extrapolated to be true for the wider population

• A wide range of respondents can be reached using online survey tools such as SurveyMonkey

Observation

• This involves hiring someone to stand in an appropriate location and study consumer behaviour in a store or perhaps judge the potential consumer traffic at a particular location

  • Researchers may observe the impact of packaging or the particular placement of a product in a store on consumer choice

Interviews

• The questions may be set up in a very similar way to a survey; however, an interviewer asks the questions

• This method takes longer, but it does allow the interviewee to ask follow-up questions and gather information that might easily be missed when conducting surveys

Test marketing

• Free samples are provided to the target market for a limited period to gauge their response to the product

• Adjustments to the product or other elements of the marketing mix can be made following feedback

Focus groups

• A marketing specialist leads free-form discussions to collect detailed feedback from the target market on all aspects of the marketing mix

• Usually limited to a small group of 12–15 people

• The group typically meets for 90 minutes to 3 hours

• Businesses must choose a primary marketing research method that allows them to capture the correct form of data that can support decision-making

  • Each method has a range of advantages and disadvantages, which must be considered when making this choice

Evaluation of primary marketing research

Technology and marketing research

• Traditionally, primary research has been relatively difficult and expensive for businesses to gather 

• The rise of social media platforms such as Facebook, Twitter, Instagram and TikTok has changed this, providing businesses with incredible primary research opportunities

  • The speed of communication between businesses and customers can be almost instantaneous. E.g. by using online polls, thousands of responses can potentially be received in several hours

  • The cost of gathering this information can be very low. E.g. online polls take a few minutes to set up, and software automatically gathers and analyses the results

  • Social media helps businesses generate an interactive relationship with their customers, which helps to strengthen brand loyalty

  • Customers can also quickly provide feedback on products — or offer innovative ideas on how they want the products to be changed 

  • This feedback may help the firm develop extension strategies within the product life cycle

Sampling

• Sampling involves getting opinions from a selected group of people in order to find out about the market as a whole

  • It is expensive and time-consuming to collect data from all customers in a market

  • Marketing researchers use carefully designed sampling methods from which conclusions can be drawn about the market as a whole

  • In general, the larger the sample size, the more likely that results from marketing research activities will reflect the market as a whole

The main sampling methods

Random sampling

• This method ensures that every member of the population has an equal chance of selection

  • E.g. a survey of gym members may be sent to a random selection of customers taken from the membership database

Advantages

• Simple to design and interpret

• As anyone in the population can be asked, bias should be avoided

Disadvantages

• As anyone may be selected, the sample may not be representative of the market as a whole

• Researchers need a complete and accurate population listing

Stratified sampling

• This method involves the random selection of participants from subgroups of the population, such as age, gender, income level or education groups

  • E.g. a survey of school pupils may be carried out only on Year 10 girls

Advantages

• Focuses on people from the key subgroup (for example, age or region), so the research results are likely to be highly relevant

Disadvantages

• Setting up and running mini‑samples is likely to be more complex than organising one simple sample

Quota sampling

• This method obtains a representative sample by determining specific proportions of each group of the population upon which to carry out research

  • E.g. a researcher conducting a survey for a family car manufacturer may seek to interview a sample comprising 25% of individuals aged 18–24, 50% aged 25–45 and 25% aged 46 and above

Advantages

• Quick and easy way of obtaining a sample

• It guarantees that hard‑to‑reach groups (such as older teens) appear in the right numbers in survey results

Disadvantages

• Not random, so there is some risk of bias

• Understanding the population is necessary in order to apply the results to the market as a whole

The choice of sampling method

• The choice of sampling method will depend upon a wide range of factors

  1. Time available

     • Where little time is available to carry out marketing research, a random sample may be most appropriate, as it is usually very quick and straightforward to organise

  2. Knowledge of the target population

     • Where a business has good knowledge of the target population, a quota sample should provide a set of research data that lacks bias

  3. Skills of researchers 

     • Where researchers lack experience or expertise in marketing research, a focused stratified sample is likely to provide a useful set of data that can be easily interpreted