Unit 7 business decision making notes

Unit 7 Aim C - business decision making

LEARNING OUTCOME C1 - TYPES OF RESEARCH

Quantitative and qualitative research
Often used together to fully understand a target audience

Quanititative research:
⁃ Produces numerical data
⁃ Objective and easier to interpret, compare, and analyse

Qualitative research:
⁃ Produces descriptive, subjective data
⁃ Provides context and understanding to the findings

Using both allows businesses to see trends and reasons behind them

Internal & external primary research

Internal primary research:
⁃ Data generated within the business
⁃ Examples - sales figures, customer data

External primary research:
⁃ Data collected from outside the business
⁃ Examples - questionnaires, observations, focus groups

Primary research
⁃ Tailored to the specific business and target audience
⁃ Provides in-depth and accurate information
⁃ Helps decide how best to market products/ services
⁃ More time-consuming and costly than secondary research

Primary research methods:

Surveys
⁃ Provide quantitative data from target audience
⁃ Can be conducted face-to-face, online, by post, or email
⁃ Helps shape marketing campaigns, product offerings, and services

Interviews
⁃ Gather qualitative, in-depth feedback
⁃ Can be short or long, face-to-face or via phone
⁃ Provides insights on how customers feel about a product or brand
⁃ Helps decide which products features to highlight in marketing

Focus groups
⁃ Typically 4-19 participants
⁃ Moderator can probe for reasoning and justification
⁃ Provides detailed qualitative feedback
⁃ Useful before launching a marketing campaign

Observations
⁃ Watch customer behaviour in real-life settings
⁃ Reveals behaviour patterns but may not explain reasons behind them
⁃ Useful to see impact of changes on customer behaviour

Can include:
⁃ Foot traffic and shop window engagement

, ⁃ In-store navigation and product attention
⁃ Reactions to marketing changes

Types of secondary research
⁃ Published reports
⁃ Back data (historical data)
⁃ Industry reports & trade journals
⁃ Government data
⁃ Customer reviews

Publish reports
⁃ Provide info on economy, politics, and market segments
⁃ Often require subscriptions or fees
⁃ Can help identify effective marketing strategies

Back data (historical data)
⁃ Internal business records of past sales, revenue, and products
⁃ Helps identify trends, customer behaviour, and patterns
⁃ Useful for future decision-making

Industry reports
⁃ Provide latest updates and standards in a specific industry
⁃ Help businesses stay compliant and up-to-date
⁃ Can be used to promote compliance as a marketing feature

Trade journals
⁃ Industry-specific magazines with news, stats, and articles
⁃ Useful for marketing decisions and learning effective methods used in
the industry

Government data
⁃ Free access, often based on the entire population
⁃ Includes employment figures, household info, crime stats, demographics
⁃ Can be used regionally, nationally, or globally
⁃ Helps tailor marketing to customer characteristics

Customer reviews
⁃ Show customer opinions on products or services
⁃ Highlight strength and areas for improvement
⁃ Platforms include google reviews, Trustpilot
⁃ Can impact reputation and future marketing strategies

LEARNING OUTCOME C2 - COMPETITOR ANALYSIS

Competitive environment
⁃ Competitor - any business selling the same or similar products/services
⁃ Competition affects profitability and long-term survival
⁃ Important to monitor competitors regularly to avoid them gaining
advantage

Competitor analysis - key factors to know:
⁃ Product/service offered - what are competitors selling?
⁃ Pricing strategies - how competitors price products can inform your own
pricing decisions
⁃ Location - where competitors operate and where there are gaps in the
market
⁃ Marketing strategies - understand how competitors promote their
business