1.2 spotting a business opportunity Flashcards
impact of competition
keep prices down
bring in new products
makes them do things they don’t want to do
gaps in the market show
shows which customer requirements are covered and which are not
what decisions have to be made when facing competition
price customer service Quality product range location
why price is important
customers always want to pay less for a given product
they should always have lower prices to attract customers
why customer service is important
make customers more willing to pay more
why quality is important
better quality better sanctification.
spend money on developing new high quality products
why is product range important
more attractive if there is more choice
a business will be able to take gaps in the market
why is location important
convenient place as no travel
online is the best convenience
What is the purpose of market research
identify the customers
understanding of customers
needs of the customer so they can make products for this purpose
how does market research help make informed decisions
what products to sell
where to sell them
what price to sell them
how does market research help spot a gap in the market
have a need that is not meet and they can them met it
how does market research help reduce risk
stop them selling to high put shop in the wrong location
help them make informed decisions
how is secondary research helpful
look at a wide range of data so its useful for looking at whole markets
where can you find secondary research
government reports , articles on the internet
disadvantages of secondary research
not always relevant or right
out of date
