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Unit 10: Market Research in Business
P1: Describe types of market research

Telephone Interview
A telephone interview is a useful method for business surveys due to different factors
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Therefore, with a telephone interview they will get a larger
amount of information in a condensed amount of time, due to a large team covering the
population asking people questions
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However, the disadvantages may include the attitudes taken towards collecting information,
as telephone surveys can be seen as intrusive, as most of the time, telephone surveys
inconveniently call busy people or people at home, so this may diminish the quality of
answers, or cause people not to answer at all, as they may not want to pick up the phone as
they are busy
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There are many advantages towards test marketing, as the customers have the
prototype product to try, so therefore the customer is more likely to give an informed answer
which is more accurate, and therefore the market research gained can be worked on from
the customers opinion
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However, the disadvantages of test market research include that information may not be
representative of the full target market, as the market research team may be limited in time
or travel, so therefore they may target one city in the UK, which won’t be representative of
everyone's views, so therefore changes to the product may not be relevant to everyone
else’s tastes and opinions, so therefore changes may negatively impact the product in the
eyes of the rest of the population
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However, the level of response to a postal
survey varies enormously, depending on its relevance to the reader, interest and the spare
time the interviewee has
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From this, it can also reach different target markets and gain different
viewpoints and opinions, due to the coverage of the survey, so therefore they can get a
larger view of what the general population thinks about their product or service
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However, response rates are typically ten per cent or lower, so answers are not particularly
representative of an entire population, meaning that brands aren’t getting all the relevant
information they need to make relevant changes to their product/service to make it better
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Finally, incomplete surveys may given back, so
therefore this would imbalance all the information, and as a result, not all the information
required may not be given, so therefore this method isn’t as reliable as they others,

Street Survey
A street survey is a good way to collect information as the interviewer and interviewee can
communicate effectively to find out more detailed information
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With this, you can also note down different
pieces of information such as their attitude toward the product and brand, so you can get an
idea about the public perception, along with the answers to the surveys
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Also, some people may be in a rush, so they may not give
accurate answers, so therefore the information wouldn’t be as useful to the brand due to
inaccuracies
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Website Survey
Website surveys are very good at collecting information due to many different factors
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Internet surveys are also effective in terms of
collecting vast amounts of data due to a large sample size being covered on the internet, so
therefore this leads to website surveys being both cost and time effective, as you can gain
large amounts of data, in a short amount of time, making sure that the brand can get their
money's worth, as they can get a large amount of surveys completed in a short space of
time
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Pilot Study
A pilot study is a research which may be investigated to get the views of some before the
real surveys are taken out, so therefore the interviewers can refine their questions and
ensure they will be receiving relevant information in to improve their product
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However, the main issue is that it can be quite time consuming and expensive, as it may
take time to get this level of research, and of course you need to pay someone to carry this
out, and in the end, this is only pre-research, so then you need to pay more money in order
to find the real research that you will use to make changes to the product in the end
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For
example, Pepsi may look at Coca-Cola, to see why they may be top of the food chain, and
they may look at their accounts to see their money is going to ensure that they stay at the
top
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From this they may look at their
sales, compare it to their own
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They may also look at marketing expenditure, as if

Coca-Cola are spending much more than Pepsi in this area, it would help to explain why
they are so different in terms of scale and profit m, so from this Pepsi may make decisions
using Coca-Cola’s information, in order to help bridge the gap between them
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This may be in the form of a face-to-face chat, they may
encourage the customer to fill out a form, or ask them to leave a customer review online
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Cookies
Cookies are used effectively in terms of gaining market research, as they can find out what
people's interests are online, in order to advertise them products in the future, which they
believe people are interested in using the information they have gathered
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The only issue with internet cookies is that people need to consent to them when
they enter the website, and most people are against websites collecting information about
them, so this is the only issue that rises up, as they may not get as much information as they
want to help them advertise due to internet laws preventing them from getting as much
information as they need to help them advertise in the future

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