Using Market Research Data (AQA GCSE Business)

Interpreting Market Research Data

• Once market research has been gathered, it is often fed into a spreadsheet or database

• This information is then used to generate a meaningful presentation of the data

• A good presentation of the data in graph or chart form, makes it easier for the intended audience to understand it

Types of graphs and charts

1. Tables

• Tables summarise data in an organised form

Diagram: example table

• The table shows that:

  • Flashmaster generates the highest sales in each period

  • Sales of LumoLens are lower at the end of the year than at the start of the year

2. Bar charts

• Bar charts show data that is independent of each other, such as sales per store or category sales

Diagram: example bar chart

A bar chart showing sales revenue of a selection of home video entertainment formats in the USA in 2017

(Source: British Council)

• The bar chart shows that:

  • The top two categories have increased since 2016

  • The bottom three categories have all decreased, with DVD/Blueray in-store rentals falling the most

3. Pie charts 

• Pie charts show how a whole is divided into different elements, such as:

  • The total business sales divided among different product types it sells

  • The market share different competitors have

Diagram: example pie chart

A pie chart showing Apple's quarterly revenue by category in April 2021

(Source: Six Colours)

• The pie chart shows that:

  • iPhones were the product which generated the highest value of sales revenue at 54%

  • Mac sales represent one fifth of the value of iPhone sales

4. Infographics 

• Infographics are easy-to-understand visual representations of data

Diagram: example infographic

An infographic used by Mars to communicate key business statistics

(Source: Mars)

• The infographic shows:

  • Mars has 140,000 associates

  • Mars is still a privately owned family company

  • Mars generated $45B in net sales

Market Size & Market Share

• Market size can be measured through  sales volume  or sales value

  • Sales volume is the number of products sold

    • E.g. The number of chocolate bars sold

  • Sales revenue = price x quantity sold

    • E.g. The total financial value of chocolate bars sold

• The market share that a business enjoys is the proportion of the total sales of its product(s) compared to the market as a whole, e.g. Tesco has 26% of the UK grocery market
    

• Market Share can be calculated using the formula