1.2 Spotting a business opportunity. Flashcards
customers needs
things customers need from a product for it to be useful or valuable
business need to understand this and meet the needs with their products
price
customer needs
needs to be affordable to to target market
too low can mean poor quality
to high can make it unaffordable
dose price and value match
quality
customer needs
the standard of the product being served/offered
lower quality = lower price
higher quality = higher price
( higher expenses for the business)
choice
custome needs
business have a range of products to suit different segment markets
customers have different needs/desires
customer needs
price
quality
choice
convenience
different types of customer needs
family needs ( couples with/without children have different needs )
financial needs (different incomes chose different products )
emotional needs ( strong connection brand/product)
personal taste/preference ( based on style,colour,function)
what is market research
helps business understand customers,competitors and market
purpose of market research
identify gaps in the market
understand trends e.g market growth
understand how well business is doing
know customer opinion on product/service
what are the types pf market research
primary research ( collecting info that doesn’t exist,first hand contact with customers)
secondary research ( gathering information that already exists)
primary research
focus groups
surveys
questionnaires
secondary research
internet sites
gov reportes
sales data
what is qualitative data
info about people opinion
quantitative data
statistics graphs and numbers
size scale
market research
can expensive for small business
greater the sample size the more accurate research will be
bias
market research
feeling you have to agree with an idea
e.g owner collecting family opinion
they can give biased answer to please owner makes research being inaccurate
