1.2 Spotting a business opportunity Flashcards
Customer needs
the products or services people need to make life comfortable
Customer wants
what people choose to spend their money on, once the weekly bills are paid
Goods
products that maybe fresh, such as apples or manufactured such as baked beans
Services
providing useful ways to help people live their lives, for example, shops, restaurants and hospitals
Choice
giving customers options and increasing the chance that the product will be perfect for the tastes and habits of customers
Convenience
making life easier for customers, perhaps by a great location or a product that saves time
Identifying customers
finding out who they are: their age, gender, income, where they live and what they want.
Understanding customers
learning why customers do what they do, making it easier to see how to make a product that better suits them.
Primary research
research conducted first-hand; it is tailor made to a company’s specific needs
Secondary research
when a company uses research that has already been carried out.
focus group
a groups discussion among people selected from target market, drawing on psychology to provide qualitative insights into consumer attitudes
Market segments
the subsets within a market that have be identified
Demographics
the study of the statistical differences that exist within a population
Lifestyle
grouping people by common characteristics in how they live, from their taste in music or their participation in sport
The competition
companies operating in your market sector
Market map
measuring where existing brands sit on a two-factor grid, for example, young/old compared with high price/low price
Gap in the market
an area on a market map where few or no businesses exist, implying a business opportunity to fill an unmet consumer need.
Competitive environment
the strength of competition between companies in the same market
Innovative
a new, perhaps original, product or process
Quantitative data
factual research among a large enough sample to provide statistically reliable results
Qualitative data
in-depth research into the opinions and views of a small group of people which can provide an insight into why customers buy what they buy.
