1.2 Spotting a business opportunity

Question 1

1.2.1 Customer needs

Answer 1

Price, quality, choice, convenience

Question 2

1.1.2 Purpose of market research

Answer 2

1.To identify and understand customer needs
2.To identify gaps in the market
3.To reduce risk
4.To inform business decisions

Question 3

1.2.2 Methods of market research

Answer 3

Primary : survey, questionare, focus group, observations
Secondary : Internet, market reports, government reports

Question 4

1.2.2 Primary market research advantages

Answer 4

1.Provides a competitive advantage
2.Tailored to needs of business
3.Makes business unique

Question 5

1.2.2 Secondary research advantages

Answer 5

1.Cheaper

Question 6

1.2.2 Qualitiative data

Answer 6

Focuses on opinions and attitudes collected through interviews, focus groups and in depth discussions

Question 7

1.2.2. Quantitative data

Answer 7

Focuses on numerical data collected through surveys

Question 8

1.2.3 How businesses use market segmentation to target customers

Answer 8

Location, demographics, lifestyle, income, age,
Market mapping to identify gaps in the market

Question 9

1.2.4 Understanding the competitive environment

Answer 9

Strengths and weaknesses of competitors based on price, quality, product range and customer service

Question 10

1.2.4 How can a business gain a competitive advantage

Answer 10

Stronger USP, stronger brand image, better products, better quality