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ASBusinessAQARevision Notes3. Marketing Management3.2 Understanding Markets and CustomersThe Importance of Marketing Research

The Importance of Marketing Research (AQA AS Business): Revision Note

Exam code: 7131

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Marketing research and decision-making

  • Marketing research is the process of finding out information about the market in which a business operates by collecting, presenting and analysing information about customers, competitors and market trends

Why do businesses carry out marketing research?

Reason

What it involves

Example

Check the firm’s current market position

  • Analyse market size, rivals, prices and customer share to see where the business stands

  • UK clothing brand Superdry used market‑share data to spot falling youth appeal before relaunching its latest range

Set suitable marketing objectives

  • Facts (e.g. spending patterns) help managers fix clear, realistic targets for sales, share or loyalty

  • Research on streaming habits led Spotify to aim for double‑digit subscriber growth in the UK

Choose the right strategies and tactics

  • Data from marketing research can pinpoint which product, price, place or promotional mix will work best

  • Customer‑location studies led Domino’s Pizza UK to focus new stores within a 10‑minute delivery zone

Measure success of marketing activities

  • Post‑promotional campaign sales figures, web analytics or customer feedback show if the plan hit the target and what to improve

  • After a new app launch, Costa Coffee tracked order and loyalty‑scan data to judge the ad campaign’s impact

Marketing research and understanding customers

  • Effective research can help a business understand customer needs and wants

    • They can then ensure that the products, as well as the price and location at which they are sold, closely match what customers want to buy

What marketing research can discover

A family carrying shopping bags is surrounded by call-out questions about consumer behaviour, with a focus on influences, desires, cost, timing, location and promotion.
Marketing research can provide insights on customer behaviour

Insight

Example

What do they want?

  • Cadbury tracked Facebook groups and YouTube comments where thousands of fans begged for the old Wispa bar

  • Seeing a clear demand, Cadbury relaunched Wispa in 2008 — and sold 20m bars in the first seven weeks

How much will they pay?

  • A 2023 UK study found that Netflix subscribers would still stay if fees rose a little, showing that price elasticity was very low

How does promotional activity affect them?

  • Aldi measured weekly sales and social media sentiment during its 2023 “Kevin the Carrot” Christmas advertising campaign

  • The data showed a sharp jump in festive food sales and a gain in market share, proving that the cartoon character drives shoppers into stores

Where will they buy the product?

  • Office for National Statistics (ONS) data shows online now makes up around 26% of UK retail sales

  • Grocers such as Morrisons have adjusted by adding more home‑delivery slots.

When will they want products

  • Starbucks tracks autumn demand data and now launches its Pumpkin Spice Latte in late August because sales jump immediately

Why do they choose products?

  • A 2023 UK survey found 82% of shoppers will pay more for eco-friendly packaging, steering brands towards greener materials

What influences their buying choices?

  • A 2023 UK report by Traakr found that social media influencers now sway buying choices for half of 18–34-year-olds

Marketing research and competitiveness

  • Overall, effective marketing research can increase the competitiveness of a business

    • Good marketing research helps a business spot customer needs before its rivals and target its products and adverts exactly where they will work best, so competitors find it harder to lure shoppers away

Quantitative and qualitative data

  • Marketing research data can be quantitative or qualitative

    • Quantitative data is based on numbers

      • It could include financial reports (e.g. sales, costs), market data (e.g. markets share) or summaries of data gained from primary research (e.g. on a scale of 1–10, rate our customer service)

    • Qualitative data gathers descriptions or explanations

      • These can be based on conversations, discussions, impressions and emotional feelings and are usually gathered through primary research

Limitations of quantitative and qualitative research data

Limitations of quantitative data

Limitations of qualitative data

  • Numerical data may be out-of-date, especially in dynamic markets

  • Data analysis and interpretation is a complex skill that is likely to be lacking in smaller businesses

  • Looking at a small amount of data and then extrapolating results can provide wrong assumptions on which to base decisions

  • Numerical data does not provide reasons for outcomes, e.g. data may reveal sales volumes are falling but not the reason for the decline

  • Bias may mean that analysts can interpret responses in a particular way

  • Respondents may lack awareness or language skills to explain preferences accurately

  • Respondents in focus groups may be influenced by the responses of others or not provide accurate information

  • Qualitative data is difficult to present in graphs and charts, so it may not be easily understood

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    Author
    Reviewer
    Lisa Eades

    Author: Lisa Eades

    Expertise: Business Content Creator

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

    Steve Vorster

    Reviewer: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.