1.2 Spotting a business opportunity Flashcards
Choice
giving customers options and increasing the chance that the product will be perfect for the tastes/habits of one type of customer
Convenience
making life easier for customers, perhaps by a great location (next to the bus stop) or a product that saves time in preparation or consumption
Identifiying customers
finding out who they are: their age, gender, incomes, where they live and what they want
Quality
to a customer quality means getting what they want, or perhaps better than expected; some companies use the term “customer delight”.
Focus group
a group discussion among people selected from the target market; it draws on psychology to provide qualitatice insights into consumer attitudes
Primary research
research conducted first-hand; it is tailored to the company’s specific needs, for example a quantitative sales estimate for a brand new chocolate bar
Qualitative data
in-depth research into the opinions and views of a small group of potential or actual customers; it can provide insight into why customers buy what they buy
Quantitative data
factual reserach among a large enough sample of people to provide statistically reliable results, for example a survey of 500 people aged 15-24 years
Secondary research
when a company uses research that has already been carried out for general purposes
DIALL
Demographic, Income, Age, Lifestyle, Location
Demograaphics
the study if the statistical differences that exist within a population, both now and in the future
Lifestyle
grouping people by common characteristics in how they live, from their participation in sports and leisure to their views of the environment, taste in music and even nerdier things such as passion for trains
Market segments
the subsets within a market that have been identified as a result of market segmentation
(The) competition
companies operating in your market or market sector
Gap in the market
an area on a market map, where few or no existing brands operate, implying a business opportunity to fill an unmet customer need
Market map
measuring where existing brands sit on two factor grid, for example young/old compared with high/low price old
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low—————————–high
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young
SWOT
strengths, weaknesses, opportunities, threats
competitive environment
the strength of competition between companies in the same market
Innovative
a new, perhaps original, product or process
Unethical
an action or decision that is wrong from a moral standpoint
