Daniel Watler Thursday, November 03, 2016
Unit 3 Introducton to arketnn
P3 2 D2
Criteria brief
P3 – Describe how a selected ornanisaton uses marketnn research to contribute to the development of
its marketnn plans
2 – Explain the limitatons of marketnn research used to contribute to the development of a selected
ornanisaton’s marketnn plans
D2 – ake justied recommendatons for improvinn the validity of the marketnn research used to
contribute to the development of a selected ornanisaton’s marketnn plans.
Scenario
You are workinn as an assistant in Costa Cofee’s arketnn Department. They have asked you to
investnate the diferent market research methods available to them with a view to makinn
recommendatons of which ones are more suitable for them as a company.
Task 1 – P2 M2 D2
You should create a report to cover the followinn:
A short introducton explaininn why companies use market research.
Explain what qualitatve and quanttatve data are. Give an example of each.
Explain what primary research is and describe 5 methods that are available to Costa.
Explain what secondary research is and describe 4 methods available to Costa.
Describe ive diferent ways in which Costa could use informaton collected from marketnn
research to make decisions about the marketnn mix. You must nive at least one example for
each of the 4 p’s. You should explain which methods of market research have been used to
collect the informaton. Also describe what the informaton is and how it helped to make the
decision.
Usinn the ive scenarios and market research methods niven to you, explain the problems that
Costa minht encounter with these methods in researchinn what Costa have set out to research.
Usinn the problems that you have explained in the previous secton, make recommendatons of
how you would overcome them.
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, Daniel Watler Thursday, November 03, 2016
Unit 3 Introducton to arketnn
P3 2 D2
Market Research
Companies use market research to evaluate and analyse current factors of an area, there are 3 main
areas the research can focus on, and these are;
Customers
arket Environment
Competton
The informaton nathered renardinn these 3 areas are all pulled tonether in aid of decision makinn usinn
the Ansof’s atrix. This process involves the 4P’s (place, product, price and promoton). Without
market research a business may release unwanted products and advertsements, this means they will
lose money as no one has a desire for the product. Costa Cofee use various types of market research in
order to reach their aims and objectves to maximise nrowth and proits, this is similar to many other
businesses who invest inance into market research with the intent of makinn a proit.
Types of Market Research
There are two main types of market research, these are;
Primary – This is where a business uses their own resources in order to nather informaton, they
refrain from usinn a third-party to obtain this. This is usually more tme consuminn and in most
cases will come in the form of a survey.
Secondary – This is where a business uses a third-party to nather informaton about an area. This
is usually more cost-efcient and less tme consuminn, however the informaton may not no into
the required detail needed to make an accurate decision.
Both of these types are useful to a business however dependant on the desires of the business one may
be more beneicial than the other. An example of this would be unemployment, this can easily be found
via the ONS website within a mater of seconds. This is obviously less tme consuminn and more cost-
efcient than doinn primary research.
Within both of these types of market research (primary and secondary) there are two diferent types of
data which are used within natherinn the informaton, these are;
Quanttatve – This informaton is all about quantty, it focuses on questons with few answers
(yes/no) and is usually used when researchinn into amounts of sales or market share.
Qualitatve – This informaton focuses around opinions and perceptons of the consumer, this is
mainly presented in words and features few numbers. An example of this would be a customer’s
review on a featured product or service.
Both types of data are beneicial to businesses for diferent reasons, quanttatve data is very quick to
scan throunh for a rounh idea on the current health and actvity of the researched market. Qualitatve is
useful when lookinn at improvements renardinn a boost in customer satsfacton.
Marketing Mix
The marketnn mix is made up of 4 P’s these are;
Product
Price
Promoton
Place
These are all considered and studied when releasinn a new product in order to maximise proits. One of
the main ways for a business to maximise proits involves market research allowinn them to make
uniformed decisions on maters such as where they will sell the product. Both primary and secondary
research can be used to acquire the required informaton, however certain methods are beter suited
when makinn decisions involvinn the marketnn mix.
2|Pane
Unit 3 Introducton to arketnn
P3 2 D2
Criteria brief
P3 – Describe how a selected ornanisaton uses marketnn research to contribute to the development of
its marketnn plans
2 – Explain the limitatons of marketnn research used to contribute to the development of a selected
ornanisaton’s marketnn plans
D2 – ake justied recommendatons for improvinn the validity of the marketnn research used to
contribute to the development of a selected ornanisaton’s marketnn plans.
Scenario
You are workinn as an assistant in Costa Cofee’s arketnn Department. They have asked you to
investnate the diferent market research methods available to them with a view to makinn
recommendatons of which ones are more suitable for them as a company.
Task 1 – P2 M2 D2
You should create a report to cover the followinn:
A short introducton explaininn why companies use market research.
Explain what qualitatve and quanttatve data are. Give an example of each.
Explain what primary research is and describe 5 methods that are available to Costa.
Explain what secondary research is and describe 4 methods available to Costa.
Describe ive diferent ways in which Costa could use informaton collected from marketnn
research to make decisions about the marketnn mix. You must nive at least one example for
each of the 4 p’s. You should explain which methods of market research have been used to
collect the informaton. Also describe what the informaton is and how it helped to make the
decision.
Usinn the ive scenarios and market research methods niven to you, explain the problems that
Costa minht encounter with these methods in researchinn what Costa have set out to research.
Usinn the problems that you have explained in the previous secton, make recommendatons of
how you would overcome them.
1|Pane
, Daniel Watler Thursday, November 03, 2016
Unit 3 Introducton to arketnn
P3 2 D2
Market Research
Companies use market research to evaluate and analyse current factors of an area, there are 3 main
areas the research can focus on, and these are;
Customers
arket Environment
Competton
The informaton nathered renardinn these 3 areas are all pulled tonether in aid of decision makinn usinn
the Ansof’s atrix. This process involves the 4P’s (place, product, price and promoton). Without
market research a business may release unwanted products and advertsements, this means they will
lose money as no one has a desire for the product. Costa Cofee use various types of market research in
order to reach their aims and objectves to maximise nrowth and proits, this is similar to many other
businesses who invest inance into market research with the intent of makinn a proit.
Types of Market Research
There are two main types of market research, these are;
Primary – This is where a business uses their own resources in order to nather informaton, they
refrain from usinn a third-party to obtain this. This is usually more tme consuminn and in most
cases will come in the form of a survey.
Secondary – This is where a business uses a third-party to nather informaton about an area. This
is usually more cost-efcient and less tme consuminn, however the informaton may not no into
the required detail needed to make an accurate decision.
Both of these types are useful to a business however dependant on the desires of the business one may
be more beneicial than the other. An example of this would be unemployment, this can easily be found
via the ONS website within a mater of seconds. This is obviously less tme consuminn and more cost-
efcient than doinn primary research.
Within both of these types of market research (primary and secondary) there are two diferent types of
data which are used within natherinn the informaton, these are;
Quanttatve – This informaton is all about quantty, it focuses on questons with few answers
(yes/no) and is usually used when researchinn into amounts of sales or market share.
Qualitatve – This informaton focuses around opinions and perceptons of the consumer, this is
mainly presented in words and features few numbers. An example of this would be a customer’s
review on a featured product or service.
Both types of data are beneicial to businesses for diferent reasons, quanttatve data is very quick to
scan throunh for a rounh idea on the current health and actvity of the researched market. Qualitatve is
useful when lookinn at improvements renardinn a boost in customer satsfacton.
Marketing Mix
The marketnn mix is made up of 4 P’s these are;
Product
Price
Promoton
Place
These are all considered and studied when releasinn a new product in order to maximise proits. One of
the main ways for a business to maximise proits involves market research allowinn them to make
uniformed decisions on maters such as where they will sell the product. Both primary and secondary
research can be used to acquire the required informaton, however certain methods are beter suited
when makinn decisions involvinn the marketnn mix.
2|Pane
