1.2 spotting a business opportunity

Question 1

Choice

Answer 1

Choice: giving customers options and increasing
the chance that the product will be perfect for
the tastes/habits of one type of customer.

Question 1

Convenience

Answer 1

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.

Question 2

Quality

Answer 2

Quality: to a customer quality means getting
what they want, or perhaps better than
expected;

Question 3

Understanding customers

Answer 3

Understanding customers: learning why
customers do what they do, making it easier
to see how to make a product that better
suits them.

Question 4

Identifying customers

Answer 4

Identifying customers: fi nding out who they are:
their age, gender, incomes, where they live and
what they want.

Question 5

Focus Group

Answer 5

Focus group: a group discussion among people
selected from the target market; it draws on
psychology to provide qualitative insights into
consumer attitudes.

Question 6

Primary research

Answer 6

Primary research: research conducted
fi rst-hand; it is tailored to a company’s specifi c
needs, for example a quantitative sales
estimate for a brand new chocolate bar.

Question 7

Qualitative data

Answer 7

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 consumers buy what they buy.

Question 8

Quantitative Data

Answer 8

Quantitative data: factual research among
a large enough sample of people to provide
statistically reliable results,

Question 9

Secondary Research

Answer 9

Secondary research: when a company uses
research that has already been carried out for
general purposes.

Question 10

Demographics

Answer 10

Demographics: the study of the statistical
differences that exist within a population, both
now and in the future.

Question 11

Lifestyle

Answer 11

Lifestyle: grouping people by common
characteristics in how they live,

Question 12

Location

Answer 12

Location: the extent to which consumers identify
with the place where they were born or grew up.

Question 13

Market segments

Answer 13

Market segments: the subsets within a market
that have been identifi ed as a result of market
segmentation.

Question 14

Competition

Answer 14

competition: companies operating in your
market or market sector.

Question 15

Gap in the market

Answer 15

Gap in the market: an area on a market map
where few or no existing brands operate,
implying a business opportunity to fi ll an unmet
consumer need.

Question 16

Market map

Answer 16

Market map: measuring where existing brands
sit on a two-factor grid, for example young/old
compared with high price/low price.

Question 17

Competitive Environment

Answer 17

Competitive environment: the strength of
competition between companies in the same
market.

Question 18

Innovative

Answer 18

Innovative: a new, perhaps original, product or
process.

Question 18

Unethical

Answer 18

Unethical: an action or decision that is wrong
from a moral standpoint.