1.2 Spotting a Business Opportunity Flashcards
1
Q
What are the 4 customer needs?
A
Price, quality, choice and convenience
2
Q
What is the importance of identifying and understanding customers?
A
Generating sales, business sales
3
Q
What is the purpose of market research?
A
- to identify and understand customer needs
- to identify gaps in the market
- to reduce risk
- to inform business decisions
4
Q
What are the methods of market research?
A
Primary research: survey, questionnaire, focus group, observation
Secondary research: internet, market reports, government reports
5
Q
The use of data in market research
A
- Qualitative and quantitative data
- The role of social media in collecting market research data
- The importance of the reliability of market research data
6
Q
How can businesses use market segmentation to target customers?
A
- identifying market segments: location, demographics, lifestyle, income, age
- market mapping to identify a gap in the market and the competition
7
Q
Ways of understanding the competitive environment?
A
Evaluating strengths and weaknesses of competitors based on: price, quality, location, product range and customer service
- the impact of competition can affect business decision making
