Assignment two â€“ Introduction to Marketing
Report describing how McDonalds use market research information to understand the behaviour of customers, competitors and market environment.
Market research definition â€“ the BTEC national business book one edition two defines market research as â€œan aim to help organisations make effective decision by providing information that can inform the decision making processâ€.
Market research provides information on:-
Customers â€“ research can show organisations about consumer trends that will help forecast future customer needs. It also shows how peopleâ€™s lifestyles are at that moment in time such ...view middle of the document...
Disadvantages - data takes a long time to gather and can be expensive.
Secondary research â€“ this is where excising information is gathered by a company for market research projects or other purposes.
Advantages â€“ Information is easy to gather and very cost effective.
Disadvantages â€“ information can be out of date and could not be appropriate for what the organisation is look for.
Quantitative research can be used to â€“ measure product sales per week and estimate market shares of competing brands.
Qualitative research can be used to â€“ investigate customer attitudes towards an organisation and find out consumer reactions to a change in prices.
Internal research data â€“ this is secondary information which is held inside an organisation such as sales records and customer complaint reports.
External research data â€“ this is also secondary information however it is held outside an organisation such as government statistics.
Bias â€“ this is the difference between the answer given from the respondent and the actual truth.
Factors which determine which research methods to choose:-
Accessibility â€“ Not every research method is available to all organisations. Therefore managers need to consider accessibility when choosing a research method. Postal and email surveys are considered by most managers, however methods which require large investments in technology (observations) and special facilities such as laboratories are often used by large wealthy organisations.
Time â€“ Depending on what type of research is being carried out time can be an issue. Telephone interviews and web statistics are used to gain information which in turn will produce instant results. On the other hand personal interviews can take a long time to organise as well as email and postal surveys could take a long time to come back from members of the public.
Fit for purpose â€“ each method of marketing research has their strengths and weaknesses in terms of the data it can collect. Face to face interviews are good for gathering qualitative information however they are not fit for purpose of obtaining quantitative data.
McDonalds spends millions of pounds a year on market research as it helps them gain important information about their company along with rival companies that will in turn help them gain more profits in the future.
This market research could include looking for the ideal placement for a new store. McDonaldâ€™s spend a lot of money and time on figuring out how much traffic would be in the area, checking out the various locations and they pay people to check if the spot is ideal for the store/franchise. McDonaldâ€™s also set up stores close to competitors such as burger king, this is known as piggy backing competitors.
McDonalds use primary research such as surveys to gain information about the market environment and what the target market are looking for in the companyâ€™s products. This can help...