Market research exists to reduce risk
Market research means gathering and analysing information about a market — its customers and competitors. Its purposes: identify customer needs, spot a gap in the market, and inform the marketing mix. Above all it REDUCES RISK — giving evidence of likely demand before money is committed, so the firm is less likely to launch what customers do not want. Link research to a benefit and a lower risk of failure; naming a method alone is not enough.
Primary vs secondary research
Two classifications. By HOW it is collected: PRIMARY (field) is new first-hand data for this purpose (questionnaires, focus groups, observation); SECONDARY (desk) is existing data collected by someone else (reports, sales records, competitor prices). By TYPE: QUANTITATIVE is numbers, good for trends; QUALITATIVE is opinions and reasons, good for WHY. A questionnaire gathers both. Primary is current but costlier; secondary is cheap but may be dated.
Drawn from real examiner reports.
Answering primary research, not the method
When a question names a specific primary method (a questionnaire, a focus group, observation), do not write the general advantages of primary research instead. Read the command word and the exact method named, then answer THAT method. Writing about primary research in general when the question asked about one method is a major source of lost marks on this topic.
Nov 2024 Paper 1 Q1(g): candidates wrote generically about the advantages of primary research instead of the method the question asked for.
Naming the business is not context
On State and Outline items the application mark needs real context, not just the firm name. Add a specific detail from the extract — the product, the customers, a competitor — and show how the method helps THIS business, e.g. a questionnaire lets the juice maker ask local shoppers which flavours they prefer. Naming the firm alone earns only the knowledge mark.
June 2024 Paper 1 Q3(b): an Outline of a primary method needed the method PLUS context for the second mark.
Primary and secondary research confused
Primary (field) research is NEW data the business collects first-hand for its own purpose (questionnaires, focus groups, observation). Secondary (desk) research is data that ALREADY EXISTS, collected by someone else for another purpose (government reports, sales records, competitor prices). If a question specifies primary or secondary, do not describe the other one.
Quantitative vs qualitative data mixed up
Quantitative data is numerical — how many, what percentage — and is good for spotting trends. Qualitative data is opinions, reasons and attitudes — and is good for understanding WHY customers behave as they do. A questionnaire can gather both, while a focus group is mainly qualitative. Match the data type to what the question asks for.
Percentage change uses the original value
To find a percentage change from an old figure to a new one, use (new − old) ÷ old × 100 — divide by the ORIGINAL value, not the new one. If sales rose from 200 to 250, the change is (250 − 200) ÷ 200 × 100 = 25%, not ÷ 250 (which wrongly gives 20%). Read the correct bar or cell first, and never treat a percentage as a raw count.
Focus groups are not quick or unbiased
Calling a focus group quick, easy or unbiased is wrong and scores nothing. A focus group is slow to organise, uses a small sample and can be BIASED — a dominant member or the researcher can sway it. Its value is DEPTH: it explains WHY customers feel something. And research REDUCES risk but never REMOVES it — data can be dated, biased or from too small a sample.
Nov 2024 Paper 2 Q1(f): stating a focus group is quick, easy or unbiased was wrong and scored nothing.
Match the command word
Answer the command word. Analyse means build a chain (method → decision → lower risk) with no judgement. Justify/Evaluate means weigh the options and reach a supported decision. Analysing is not evaluating: do not stop at a chain when asked to judge.
AO4 marks need a supported choice
On a 9-mark Justify, choose ONE method and say why it suits THIS business — its budget, the data it needs, how urgently. On a 12-mark Evaluate, weigh benefits against costs and conclude. A two-sided list with no decision stays mid-band; only a judgement earns the AO4 marks.
On data reads, show your method
For data questions, read the correct figure first, then show your working — a method mark is available even if the final figure is wrong. Give the answer to the decimal places asked and write it clearly on the answer line. Clear working earns the marks.
Market research is gathering and analysing information about a market — its customers and competitors. Its purposes are:
Full notes, flashcards, Q&A and the topic quiz for every premium subject.
Premium plans are US$8.99/month or US$49.99/year — first month free.
Studying with a parent's blessing? Show them this.
