1.2: Spotting a business opportunity Flashcards
What are the four main customer needs
- Choice
- Quality
- Convenience
- Price
Why is market research necessary
- Identifying/understanding customer needs
- Identifying market gaps
- Identifying competitors
- Understanding market trends
- Reducing risk
- Checking business success
Whar are some examples of primary research
- Surveys
- Focus groups
- Observations
- Experiments
- Questionnaires
- Social media
What are the pros of primary research
- Accurate
- Up to date
- Specific to business
- Good for qualitative data
- Direct customer contact
What are some examples of secondary research
- Sales data
- Websites
- Local newspapers
- Government reports
- Market reports
- Telephone directories
What are the pros of secondary research
- More general
- Less time-consuming
- Good for quantitative data
What is another name for primary research
Field research
What is another name for secondary research
Desk research
What is market segmentation
Grouping buyers with similar characteristics/buying habits
Give some examples of potential market segments
- Age
- Demographics
- Lifestyle
- Location
- Income
- Gender
What are some benefits of segmentation
- Can meet specific customer needs
- Product differentiation
- Targeted marketing
- Developing a brand image
- Building close customer relationships
What are some limitations of market segmentation
- Targeting can be costly
- Focus on one segment can cause missed opportunities
- Characteristics can change
What are some benefits of market mapping
- Can identify gaps in the market
- Can identify competitors
- Helps with market segmentation
- Useful to make choices about marketing/brand
What are some limitations of market maps
- Based on opinions and perceptions
- Only compares based on two variables
- Hard to identify most useful variables
In what ways do businesses compete
- Product range
- Customer service
- Brand image
- Location/convenience
- Quality
- Design
- Prices
What is product differentiation
Making a product different to those of competitors
What are some drawbacks of highly competitive markets
- lower prices to compete-> less profit
- lower profit margins
- cutting back on expenditure
- more risky
- requires close analysis of competitors
