Business Studies – 3.1.1 The role of marketing | e-Consult

Businesses employ a variety of methods to identify and understand customer needs and wants. These methods can be broadly categorised as primary and secondary research. Primary research involves collecting new data directly from customers. Examples include:

• Surveys: Questionnaires can be used to gather quantitative and qualitative data on customer preferences, satisfaction levels, and demographics.
• Focus Groups: Small groups of customers are brought together to discuss a specific product or service, providing valuable insights into their opinions and motivations.
• Observation: Observing customers' behaviour in a retail environment or online can reveal their purchasing habits and pain points.
• Customer Feedback Forms: Providing easily accessible feedback mechanisms, both online and offline, allows customers to directly express their opinions.

Secondary research involves analysing existing data. This can include:

• Market Research Reports: These reports provide detailed information on market trends, consumer demographics, and competitor analysis.
• Government Statistics: Data from government sources can offer insights into broader consumer behaviour.
• Competitor Analysis: Examining competitors' offerings and customer reviews can reveal unmet needs and opportunities.
• Social Media Monitoring: Tracking social media conversations can provide real-time feedback on customer sentiment and emerging trends.

By combining these methods, businesses can gain a comprehensive understanding of their target market and tailor their products and services to meet their needs effectively. For example, a clothing retailer might use surveys to determine preferred styles and sizes, observe customer behaviour in-store to identify popular items, and analyse competitor offerings to identify gaps in the market.