Presenting & Using Market Research Data (Cambridge (CIE) O Level Business Studies)

Presenting Market Research Data

• Once market research data has been gathered it need to be converted into a form which is easy to understand and capable of being used to support business decision-making

• Common methods of presenting data include tally charts, bar charts, pie graphs and scatter graphs

Tally charts

• A table or tally chart, is a simple method used to record data in its original form

  • It is particularly useful for recording frequency of an event as it is happening

    • E.g. It may be used to record the number of customers entering a retail store

  • Each time a particular event happens, a small vertical line is drawn

    • Groups of five occurrences are recorded with a diagonal line through four vertical lines 

    • These groups of five can be easily totaled to identify frequency

• In many cases, tally chart data is converted into a chart or graph to make it more visually appealing

Graphs and charts

• Information presented in graphs and charts is often easy to understand because it is presented visually

• The type of data that has been collected and what it is to be used for will affect the form of presentation which will be used

  • Quantitative data tends to be relatively easy to present in a chart or graph

  • Qualitative data may be better presented in a report

Types of Graphs and Charts

Bar chart

• This bar graph provides a clear picture of umbrella sales between January and April and allows a manager to compare sales month by month

Pie chart

• This pie chart breaks down all umbrella sales into those achieved by different models

It shows that more than half of sales were 'Ultra' umbrellas

Scatter graph

• Scatter graphs allow relationships between two variables to be identified

• The scatter graph on the right shows that there is a positive correlation between the temperature and sales of barbecues

  • As the temperature increases, sales of barbecues increase

• A line of best fit would allow a business to extrapolate the known data to identify likely sales of barbecues at other temperatures

Analysing Market Research Data

• Quantitative data is statistical numeric data that can be used to support decision making

  • Quantitative data needs to be accurate and interpreted correctly if it is to be useful

  • It may be collected from primary or secondary sources

  • Sources of quantitative data include

    • Financial reports

    • Survey findings

    • Marketing or sales data

    • Statistical research from the government or research organisations

• Qualitative research data often requires considerable skill and insight to be interpreted appropriately

  • It involves comparing and drawing conclusions from opinions, insights, feelings and preferences

  • It is mainly collected from primary sources such as focus groups, detailed surveys/interviews and test marketing

• Both forms of data can help business managers forecast sales, identify trends and make decisions about product development, promotional planning, pricing tactics and other important marketing mix elements