How the NHS and Tesco Use Market Research

by humzah2013hotmailcom (student)

Business Level 3

Unit 3 – P3/M3

Unit 3 P3 – Section 1

Marketing Research

Marketing research is when you research the market so you can get information about other businesses around the area, the marketing research includes things like what the product is what it’s for and how they are presented, Marketing research is also researching what types of products are good, and in which area’s they will sell well, Marketing research is basically getting data of other business in the same area or same type of business as yours.

-Primary Internal research

Primary research is Information that comes directly from the source that is potential customers. You can compile this information yourself or hire someone else to gather it for you via surveys, focus groups and other methods. Tesco may use primary research by asking for feed back, doing surveys and focus groups to get information from customers about the business and products and way it could be improved, this feedback is gained from the business, people like employee’s, Mystery shoppers,

Internal research is when you collect research from inside of the business and External research is when you go outside of the business to collect information.

The sales figures of Tesco and the NHS could be improved with this research because if the business has the right research they know what to do so they can improve their services, Tesco and the NHS will keep their business figures, and they will also have a central database where they keep their customers data on.

-Primary External research

Tesco and the NHS will use things like questionnaires to research their services at the business so they have information on how to improve them, they will use their feedback to make changes in the business, They will also give customers and employee’s things like surveys which will include questions on service and things like that in the business, Interviews and focus groups are also used to focus on certain objectives to improve on, they will also have interviews with employee’s, they will set up a focus group where they talk to professional types of people and talk about the product, mystery shoppers will be shoppers sent the external business to research them and later feedback to the business that sent them. NHS will ask questions about things like experience at hospitals, did they have good customer service, was their any risks of infections, where as Tesco ask questions such as if they we’re giving good customer service such as do they like the Tesco brand, how often they spend money at Tesco.

-Secondary Internal research

Secondary Market research that's already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry. Tesco can research for secondary marketing research as it is research that has already been done, this research might now always be reliable but it can still be used, further research can be found in places which include libraries, books, annual reports, reports from other business, internet, management, statistics, Internal research is when you collect research from inside of the business and External research is when you go outside of the business to collect information, Tesco will need to keep their

Report on sales so they can tell what they’ve made or lost, they will also have to review previous market research so they can find ways to improve. Where are NHS will have to keep records of number of patients they had visits from at a hospital.

-Secondary External research

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-Secondary External research

Tesco may use things like websites to gain information about other businesses so they can research, they may also use things like trade magazines, books and newspapers because they can gather information from there and research so they can later improve on their services, Industry reports from industry associations can help the business because they can research from it, Government department figures and facts is good a way to research figures and facts from other business so they can find ways to improve on the business, public records such as census data are public records of statistics in from a national to neighborhood level use by government, Tesco wont be able to access census data but the NHS has access to these records. NHS will also investigate websites from other organizations such as Charities that deal will heart disease. NHS managers will read newspapers and magazines related to health service. The management at NHS will have to look at government department figures on statistics such as population increases/decreases, death rates in area’s of the UK. NHS can also get census data details concerning birth rates and death rates.

-Qualitative

Qualitative research is a method of advertising research that emphasizes the quality of meaning in consumer perceptions and attitudes; for example, in-depth interviews and focus groups. Tesco can use Qualitative research because they will need new ways to advertise their products and ways to improve their advertising techniques. The management within an organization has to analyze the results and make decisions on the outcomes to the interviews or method of research used.

-Quantitative Tesco

Tesco will have to research different figures about their business, they need to also know about customers, when they visit the store and how often, they need to know market figures, competition figures, percentage of market share, answers to surveys, how much a family spends every month, how many staff members leave Tesco and how many stay, and the reason they leave, percentage of customers that use special offers, what percent of the market do different supermarkets own, they use graphs and charts to analyze and make important decisions on the feedback and make changes and improvements.

-Quantitative NHS

NHS would collect figures on infections, death rates, birth rates, accident rate, nurses let staff turn over, how many people for security, rates of abuse, doctors responsible for death of patients, accidents in the hospital, new staff hired, staff leave rate, how many people a doctor will see a day, how much money they get from the government to make sure they can take care of operates/machinery and looking after their patients, do they have to make cuts of figures/funding, laying off staff, they will have to investigate the budget figures to ensure they can pay for the staff, machinery and other expenditure on things like electricity, a lot of NHS hospital’s have to make cuts because of cuts in funding from the government and tax payer.

-Qualitative

-Qualitative NHS

They have focus groups for things like new machinery, drugs things that will link to the business, for things like lasers they would have big focus groups, also benefits and draw backs of using the new machinery, and services, the research from the NHS is really important because the answers need to be correct as it could save people’s lives, the NHS will have big groups to test out new products within the NHS for example if a new piece of machinery came out a focus group would have to be put in place to focus on that piece of machinery and test it before it is used in the hospitals, they have focus groups for any new product they release or want to bring into use.

-Qualitative Tesco

Tesco will have focus groups for new products they will be releasing in their store,

Such as the Iphone grocery application, it would have had a focus group to discuss the product, things like reasonable prices, features and how people would use them,

For a example before Tesco released their Iphone grocery application it must have gone through a focus group that must have tested it and found ways to improve on it, when the focus group thought the product was good to be released they would release it for use in the store, they will ask open questions to try to get as much information on what people think of the product before releasing it, the focus groups allow the business to understand what people thing about their prices,

Their products, what to change, customer preferences, opinions, interests, the

Focus groups help Tesco with finding out what the business thinks of their product.

M3 Limitations

-Costs

Market research can become very expensive because there are many methods as businesses take part in primary and secondary research on a regular basis, companies such as Tesco and NHS will spend millions of pounds on their market research to find out exactly what people want and need in their products.

Huge paperwork costs that occur in a business for example Tesco and the NHS will have to spend money on photocopying of questions, graphs, charts, reports and results; they will have to buy numerous ink cartridges they will have to spend thousands of pounds on advertising and producing booklets on the results.

There are many staffs involved with market research for example all staff need to be trained in order to do the job properly from the staff who ask the questions to the staff who analyze the results to the manages who have to make recommendations with the results, As well as training the staff all the staff need to be recruited this costs money as you have to pay for the Job advert and the expensive human resource staff to employ the correct person with the correct skills to be able to do market research as well as hiring staff to take care of the research then they have to employ other staff who are ICT and Math experts to analyze to results to make sure there are no errors, further staff costs include managers who needs to make recommendations and improvements based on the market research, manages in the NHS and Tesco are paid a lot of money to do this job, therefore there are more costs.

Huge costs when you have to pay for the focus groups they involve loads of professionals who have to be paid at least £30 a hour which has to be paid by the company and they spend a number of hours asking questions which costs the company time which they could use to work at the business, you also need NHS and Tesco interviewers who want their money for asking the questions,

-Time

Many hours are spent on market research, this time is spent on things like answering questions, analyzing data, sorting through data, sheets, graphs and tables, The time spent to do market research is out of the business so the business could loose money because of this time being spent on something else, the business uses many hours on Market research as it will talk a lot of time to gather and sort out the information gathered about market research, Time costs money because when they are taking part in market research they are not in the store which means they cannot sell from the business which means that they could loose out on money due to this, Market research also takes a lot of time because it is very long as you will have to go through research from lots of different areas, Market research takes many hours a day which could be used in a better way, time is also spent training the questioners when the staff could be doing other things.

-Validity of data collected

The data that has been collected by the market researchers must have to be valid to the market they are researching otherwise it will be useless to them, Poor research will not give Tesco and the NHS relevant results in what they want to research, if you are asking wrong questions you will end up getting wrong answers which will not fit in with the business, for example Tesco would not ask questions like, Is Tesco in the top ten hospitals because it is time consuming and cannot help the business in any way because the data collected is invalid.

If Tesco and the NHS don’t use the research correctly they could get the research wrong and make a change in the business that wouldn’t benefit them, all the data they have to collect and use must be valid, This means that Tesco and the NHS must use the correct research in their business so they could make a change that will benefit them.

The information collected must be reliable so Tesco and the NHS can go ahead and make changes in their organisations from the results that came back from the data such as surveys and questions, Tesco and the NHS must make sure that the information is reliable, they can do this by checking multiple surveys to make they are similar and not just ticked or answered at random.

People exaggerate so all data might not be 100% correct so you will have to ask different people so you can get answer from different people which will make the results more stable so the business can use them, Tesco and the NHS must ask a large number of people so they can get the correct research and not false data which they cannot use.

People say that they will do things when they won’t such as saying they will come to the store, and buy the products when they don’t bother which would make it false research/data, Tesco and the NHS must make sure they have researched from a large number of people before they make a certain change because if only one person wants a change and the other million don’t Tesco and the NHS will loose out.

When asking people questions, some people ignore the questions and walk or move away which is time wasting and the questioners don’t get an answer so they don’t get any research, which means they have to get research in other ways, Tesco and the NHS must make sure they are persuasive when asking customers and patients to answer their questions, NHS can ask their questions in the hospital waiting rooms, whereas Tesco can hand out questionnaires with every sale.

The results given must be analyzed correctly because if they analyzer makes a mistake it could cost the business because it wouldn’t match the research given and the business will loose out, Tesco and the NHS must make sure that their research is analyzed correctly so they can make valid changes of things the people actually want to see in the business, not a mistake in the research, Tesco and the NHS must also make sure their questions offer consistency so the responses will be a good quality, high detailed and reliable answers, they must make sure they get these good quality answers so they can get ways to improve on their business.

The customers must understand the questions correctly, because if they don’t they could make the answers or just move onto the next question, if every question isn’t answered it will be harder for the NHS and Tesco to determine results from the market research, Tesco and the NHS must make sure that their questions are clear and understandable by checking them so the people answering the questions will have a easy understanding of answering them.

The questions in the focus groups must be suitable so the people who are answering must understand them, and they must be related to Tesco or the NHS; the business focus groups must be suitable for people to answer, Also the employee’s from Tesco and the NHS must be there to actually work and collect market research, whereas they could be their to get out of work or help, so Tesco and the NHS must ensure that their employee’s are doing the correct jobs so they can earn their money for collecting market research so they can improve their businesses, rather than wasting time getting paid for nothing.

How the NHS and Tesco Use Market Research

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