1.2

Question 1

1.2 - Types of markets

Answer 1

• Place
• Trade in a particular type of product
• Potential customers.

Question 2

1.2 - market size

Answer 2

The market size is the number of individuals within the market which are potential buyers or sellers of a product. It can also mean the total value of products in the market.

Question 3

1.2 - market share

Answer 3

of individuals within the market which are potential buyers or sellers of a product. It can also mean the total value of products in the market.

Question 4

1.2 - Competition : what decisions does it affect?

Answer 4

Price
Customer service
Quality
Product range
Location.

Question 5

1.2 - Market research

Answer 5

• Make informed decisions.
• Spot a gap in the market.
• Reduce risks.

Question 6

1.2 - Primary research

Answer 6

• Asking customers their opinions.
• Questionnaires, surveys, focus groups, observations.
• Up to date, relevant and specific.
• Expensive and time consuming.

Question 7

1.2 - secondary research

Answer 7

• Access to a wide range of data, looks at the whole market and past trends.
• Market research reports, government reports, newspapers, and the internet.
• Cheaper, easily found and instantly available.
• Not always relevant, nor specific and is often out of date.

Question 8

1.2 - Quantitative and qualitative date

Answer 8

• Quantitative information is anything you can measure or reduce to a number.
• Qualitative information is all about people’s feelings and opinions.

Question 9

1.2 - Using market research

Answer 9

helps to inform decisions a business should make:

• Ideas about the products it sells
• How it promotes itself
• Its pricing
• The place it sells its products.

Question 10

1.2 - Market segmentation

Answer 10

is when people are divided into different groups.
Allows a business to identify their target market.
- Age
- Income
- Lifestyle
- Location

Question 11

1.2 - market mapping

Answer 11

Helps a business to understand its place within the market.
Identify the market’s key features.
Identify competitors and gaps in the market.