1.2 Spotting a business opportunity Flashcards
How do businesses look at strengths and weaknesses of its competitors?
Strengths and weaknesses from competitors:
- Price (customers have to pay less)
- Customer service (can attract more customers)
- Quality (better quality = satisfied customers)
- Product range (fill gap in the market)
- Location (convenience)
Why is market research important to customers?
Market research to customers:
- Identifies customers
- Gives understanding
Why does market research help improve the business?
Market research to business:
- Make decisions
- Spots gaps in the market
- Reduce risks
What is primary research?
Primary research
- Doing your own work
What are examples of primary research?
Examples of primary research:
- Opinions
- Questionnaires
- Surveys
- Focus groups
- Observations
What are the positives of primary research?
Positive of primary research:
- Sample of people asked
- Aims at business
- Up to date information
What are the negatives of primary research?
Negatives of primary research:
- Expensive
- Time consuming
How does social media play a role in market research?
Social media:
- Able to see popular products/ what people like
What is qualitative data?
Qualitative data:
- Something you can measure
What is quantitative data?
Quantitative data:
- Feelings and opinions
- Hard to compare two peoples opinions
- Greater depth of information
What is market segmentation?
Market segmentation:
- People divided into groups
What is target market?
Target market:
- Specific group of people a product is aimed at
What are 4 methods of segmentation?
4 methods of segmentation:
- Age
- Income
- Location
- Lifestyle
What is market mapping?
Mapping the market:
- Helps businesses understand its location and key features
How is market mapping useful?
Market mapping usefulness:
- Businesses look at competitors selling similar products
- Can spot gaps in the market
- If product is in demand, then business can create that specific product to fill the gap
