1.2 Spotting a Business Opportunity

Question 1

The 4 Customer Needs

Answer 1

Price, Quality, Convenience, Choice

Question 2

What is the Importance of identifying and understanding customers?

Answer 2

Generating Sales and Business Survival

Question 3

The 2 methods of research

Answer 3

Primary and Secondary

Question 4

What is Qualitative Data?

Answer 4

Data which is answered in terms of an opinion.

Question 5

What is a Quantitative Data?

Answer 5

Data in terms of a definitive answer. (Yes or No)

Question 6

What is the purpose of market research?

Answer 6

Reduce risk, inform decisions, identify gaps in the market, identify customer needs.

Question 7

Limitations of market research

Answer 7

Expensive, time consuming, Sample Size.

Question 8

Primary Research Methods

Answer 8

Focus Groups, Observations, Experiments, Questionnaire.

Question 9

Secondary Research Methods

Answer 9

Internet, Government Supports, Sales Data.

Question 10

Market Segmentation to target customers

Answer 10

Demographics, Income, Gender, Age, Lifestyle, Location.

Question 11

Benefits of Market Segmentation

Answer 11

Meet Specific Needs, Develop a USP, Build Relationships.

Question 12

Drawbacks of Market Segmentation

Answer 12

Could be expensive, Could lose other customers.

Question 13

Market Mapping is used for…

Answer 13

Finding a gap in the market, comparing two variables.