1.1.2 Spotting A Business Opportunity ⏳

Question 1

What are the 4 customer needs ?

Answer 1

Price
Choice
Quality
Convenience

Question 2

What are the 4 OTHER customer needs ?

Answer 2

Personal taste - colour / function

Family needs - would be different if a customer had no children

Financial needs - certain customers may benefit from price points on vouchers - helps build a loyal base

Emotional needs - may be emotional connections with certain brands

Question 3

How will customer needs differ ?

Answer 3

Depends on the type on product/ service

Plane ride - price over choice

Buying boots - quality and convenience over price

Question 4

What is the purposes of market research?

Answer 4

Identify gaps in market
Identify and understand competitors
Identify and understand customer needs
Inform business designs to reduce risks
Understand trends

Question 5

What are the two types of market research methods ?

Answer 5

Primary- collecting info that did not exist

Social media
Questionairs
Observations

and secondary - gathering info that already exists
Market reports
Government reports
Internet

Question 6

What are the positives and negative of primary research?

Answer 6

Up to date
Valid and specific for your business
Effective at collecting qualitative research

However- expensive

Time consuming

Question 7

What are the negatives and positives of collecting secondary data?

Answer 7

Positives- more general less time consuming
Cheaper

Negative - too general , may be unavailable and data is available to competitors

Question 8

What decisions will be made in a competitive market?

Answer 8

1. Cutting costs
2. Improving efficiency
3. Offering discounts to customers
4. Differentiating products/services
5. Lowering price

Question 9

What are the drawbacks of a highly competitive market?

Answer 9

1. Accept a lower profit margin
2. Lower price
3. Reduce expenditure
4. Be careful when and how if expands
5. Have to monitor competitors more closely

Question 10

Give an example of primary research

Answer 10

Surveys
observation
social media

Question 11

Give an example of secondary research

Answer 11

Market reports
government reports
the Internet

Question 12

What’s the positive of using primary search for your business?

Answer 12

Cheaper
up-to-date
more accurate
specific

Question 13

What do businesses have to keep in mind while collecting data?

Answer 13

Not have a biased opinion so doing it face-to-face and having a representative sample of people from each demographic

Reliability 

Question 14

What are the five market segments?

Answer 14

Age - Different ages correspond to different products for example baby toys 0 to 3 years

income - Socio-economic upper-class working-class

gender- Girl or boy

psychological- Personal characteristics adventurous

demographic - What they are young couple single
Geographical

Question 15

Benefits of segmentation 3)

Answer 15

Meet specific customer needs

helps differentiate products

focus on a specific group build a closer relationship with customers

Question 16

Limitations of segmentation?

Answer 16

May be costly to get a range of different customers with different product

focusing on one group may cause a missed opportunity with another

customer characteristics change over time

Question 17

What are some ways businesses can compete?

Answer 17

Lower price
higher quality
better convenience
strong brand image

Question 18

What is product differentiation?

Answer 18

Making a product different to position their products and target different to segments

and advantage

for example one business be good at quality but you could differentiate your products to be good with the price

Question 19

What is a competitive market?

Answer 19

Where businesses sell very similar products which may be hard to differentiate

have a large market of competitors to consumers