1.2 Spotting A Business Opportunity

Question 1

<p>Which 4 things are important for addressing customers' needs?</p>

Answer 1

<ul><li>Convenience</li><li>Price</li><li>Quality</li><li>Choice</li></ul>

Question 2

<p>What does a customer become once they use a product or service?</p>

Answer 2

<p>Consumer</p>

Question 3

<p>What does being <b>market-driven</b> mean?</p>

Answer 3

<p>Being market-driven means being driven by customers’ needs and then fulfilling them</p>

Question 4

<p>What is <b>Market Research</b>?</p>

Answer 4

<p>Market research is the process of collecting and processing information about the market that a business operates in</p>

Question 5

<p>What does Market Research gather information on?</p>

Answer 5

<ul><li>Demand</li><li>Competition</li><li>Target Market</li></ul>

Question 6

<p>Why do businesses look at competiton for market research?</p>

Answer 6

<p>Market research into competitors can help a business understand the major threats in the market and then prepare the business to deal with these threats</p>

Question 7

<p>Why do businesses look at target markets for market research?</p>

Answer 7

<p>Market research into a business’ target market will give the company insights into their customers’ wants and needs and how they are changing over time</p>

Question 8

<p>What is <b>Qualitative data</b>?</p>

Answer 8

<p>Qualitative data generally collects information about opinions and views</p>

Question 9

<p>What is <b>Quantitative data</b>?</p>

Answer 9

<p>Quantitative data collects factual information on things that can be quantified and recorded easily</p>

Question 10

<p>What is <b>Market Segmentation</b>?</p>

Answer 10

<p>Market segmentation is the process of dividing potential customers into different groups based on characteristics like age, gender, income and much more</p>

Question 11

<p>Why do businesses use Market Segmentation?</p>

Answer 11

<ul><li>Choosing Market Mix</li><li>Choosing Promotion</li><li>Market Mapping</li></ul>

Question 12

<p>What is <b>Market Mapping</b>?</p>

Answer 12

<p>Market mapping is a process to identify a gap in the market by looking at what competitors offer</p>

Question 13

<p>What <b>variables</b> are used for <b>market segmentation</b>?</p>

Answer 13

<ul><li>Income</li><li>Gender</li><li>Age</li><li>Location</li></ul>

Question 14

<p>Which factors are often used for market mapping?</p>

Answer 14

<p>Quality and Price</p>

Question 15

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Answer 15

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Question 16

<p>What is <b>Competition</b>?</p>

Answer 16

<p>Competition is defined as other companies who are selling a similar (or the same) product in the same market</p>

Question 17

<p>How can businesses compete?</p>

Answer 17

<p>Businesses can compete on:</p>

<ul><li>Location</li><li>Product Range</li><li>Customer Service</li><li>Price</li></ul>

Question 18

<p>What is <b>Primary Research</b>?</p>

Answer 18

<p>Primary market research is market research that is done by a firm for its own use</p>

Question 19

<p>Name some examples of primary research</p>

Answer 19

<ul><li>Surveys/Questionnaires</li><li>Observations</li><li>Focus Groups</li><li>Interviews</li></ul>

Question 20

<p>What are the <b>advantages</b> of primary research?</p>

Answer 20

<ul><li>The research is tailored to the exact needs of the business</li><li>Reliable</li></ul>

Question 21

<p>What is the <b>Likert Scale</b>?</p>

Answer 21

<p>The Likert Scale is a scale used to represent people's attitudes to the company</p>

Question 22

<p>What is <b>Secondary Market Research</b>?</p>

Answer 22

<p>Secondary market research is when firms collect information on research that has already been performed by other organisations or people</p>

Question 23

<p>What are some examples of <b>Secondary Market Research</b>?</p>

Answer 23

<ul><li>Government Reports</li><li>Internet</li></ul>

Question 24

<p>What are <b>advantages of Secondary Market Research</b>?</p>

Answer 24

<ul><li>Cheap</li><li>Able to cover an entire market, not just a small target market</li></ul>