1.2 - Spotting a business opportunity Flashcards
What is a market?
- A place where goods are sold
- Trade in a particular type of product
- The potential customers for a product
Competiton affects how a business makes decisions on what?
- Price
- Customer service
- Quality
- Product range
- Location
Why is market research useful for a business?
- Helps businesses find out about the market and how they are performing in it
- Helps businesses identify who the businesses customers are.
- Helps them to make informed decisions
- Spot gaps in the market
- Reduce risk
What is primary research?
Primary research is infomation gathered by the researcher/business
- Surveys
- Questionnaires
- Focus groups
- Observations
What is secondary research?
The infomation already exists in some form, someone else has already collected the data.
- Internet
- Market reports
- Government reports
What is quantitative data?
Quantitative data is anything you can measure or reduce to a number
What is qualitative data?
Qualitative data is about peoples feelings and opinions
What is segmentation
When people within a market are divided into different groups
Why is it useful for a business to know the different market segments?
To allow a business to identify their target market
Why do businesses map the market?
Helps a business understand its location within the market and the markets key features
