1.2 spotting a business opportunity Flashcards
why is it important to understand customers
in order to generate sales, business survival- need customers to survive
identify the2 types of customers
new customers, repeat customers (good experience, loyalty)
list 4 main customers needs factors
price worth value, quality, convenience, choice
different purposes of doing market research (4)
identify customer needs, find gaps in the market, reduce risks, make the best decisions
explain the 2 main methods of research
and different methods
primary-1st hand, observation, surveys, focus groups (more in depth, specific, more reliable)
secondary-2nd hand, internet-out of date, market reports, government reports, (cheaper, quicker, less reliable)
explain the 2 types of data
qualitative- words & thoughts (focus groups(, Quantitative- numerical, statistics (surveys)
list different market segments & define market segment
age/demographics, location, income, lifestyle
market segments are a group of buyers with similar characteristics & buying habits
3 benefits of market segmentation
1.Helps businesses understand their customers, 2. Identify market gaps, 3. Higher levels of customer loyalty
give different features for market maps (axis)
High Price/Low Price, High quality/Low quality, Healthy/Unhealthy
why use a market map (2)
helps spot gaps in the market, useful for analysing competition
explain 5 main factors to identify strength & weaknesses of your competition
price, quality, location, product range, customer service
explain SWOT analysis, the purpose
allows you to assess your business & competitors performance
Strength-(profit rate) internal NOW
Weakness- (quality), internal NOW
Opportunity- (new markets), external FUTR
Threats- (competition), external FUTURE
