1.2 Spotting a Business Opportunity Flashcards
What are the 4 customer needs
Price
Quality
Choice
Convenience
What are 2 positive impacts of identifying and understanding customers
Generating sales
Business survival
What is market research
Research conducted to gather information about customers in a specified market and their needs and wants
The 4 purposes of market research for a business
To identify and understand customer needs
To identify gaps in the market
To reduce risk
To inform business decisions
What is primary research
Research done by the business, first-hand, to gather data that hasnt been gathered before
What is secondary research
Gathering data that has already been found to inform the business
4 Methods of primary research
Surveys
Questionnaires
Focus groups
Observations
3 Methods of secondary research
Internet
Market reports
Government reports
What are the two types of data
Qualititative and quantitative
What is qualititative data
Data based on opinions and individuals attitudes and beliefs
What is quantitative data
Data represented numerically
Benefits of using social media for market research
Cheap or even free
Save time from putting info together
Allows business to spot latest trends and monitor competitors
Advantages of having reliable market research
The business can make informed decisions
Reduces risk
Less money is wasted
Higher chance of business success
Consequences of using unreliable market research
Business may make unwise decisions
Cost the business money
Could bring out products that dont sell
The business could fail
What is market segmentation
The process of splitting the target market into different groups
What are the 5 market segments
Demographics
Income
Age
Location
Lifestyle
DIALL
Demographics as a market segment
The individual charateristics of people, and is used to target certain types of people
What is market mapping
Using a graph of products to show the nature of competitors products and where there are gaps in the market
Examples of elements that are measured on a market map
Price, quality, duration, taste, budget
7 factors that can be strengths or weaknesses of competitors
Product range
Quality
Price
USP
Location
Convenience
Customer service
The impact of competition on decision-making
It means businesses have to match eachother to keep customers
Innovation
Can be problematic if one firm tries to force another out of business
