1.2 Spotting a business opportunity Flashcards
Customer needs
The things customers need satisfying when they buy products or services
Price
How much customers are willing to pay for a product or service. It will influence their decision to purchase or not and help determine image.
Quality
Described as ‘fitness for purpose’ and will influence image.
Choice
The variety on offer
Convenience
Something that saves time or makes things easier
Gap in the market
Occurs when no business is serving particular needs in the market
Primary research
Information that has been gathered for a specific purpose, such as finding out if your customers like your products.
Secondary research
Information that already exists, such as government reports, newspapers or internet articles.
Quantitative Research
Data that can be expressed as numbers and can be mathematically analysed.
Qualitative Research
Data about opinions, judgements and attitudes.
Survey
Where businesses find out what their customers think about new or current products and services.
(Primary).
Questionnaire
A list of questions to be answered,
usually to give information about consumers’ tastes. (Primary).
Focus Groups
A group of people who discuss their views on a product, service, advertisement or idea, either face-to-face or online. (Primary).
Observation
Watching how customers behave in a certain environment eg walking round Ikea. (Primary).
Internet Research
Research that has already been collected and is placed on the web for others to use. You need to consider cost and the date conducted. (Secondary).
Market Reports
Businesses such as Mintel who collect information about market trends and sell them on. (Secondary).
Government Reports
Information collected by the government concerning national statistics eg unemployment predictions, birth rates.
(Secondary).
Reliability
It is the degree to which research can be trusted. E.g. Is the source reliable?
Market Segments
Part of the market that has similar buying habits. This could be age, gender, income….
Target Market
A particular groups of consumers
that a business aims its products and services at
Market Map
A diagram that shows the range of
possible positions in the market, based on 2 features eg price and quality.
Direct Competition
Other businesses that sell the same product or services as you do
Indirect Competition
Businesses that don’t sell the same” product or service but still compete with you
market research
The activity of gathering information about consumers’ needs and preferences.
