1.2 Spotting a business oppurtunity Flashcards
What are the 4 customer needs?
convenience,choice,quality and price
What is the purpose of market research?
identify gaps in market,reduce risks,to understand customer needs and wants and inform business decisions
what is primary research?
Primary research is research the entrepreneur collects for a specific purpose
What are pros and cons of primary research?
pros=up to date , tailored to needs
cons=time consuming , expensive
What is secondary research?
Secondary research is the research which already exists.
What are pros and cons of secondary research?
pros=quick to get , cheap
cons=outdated , unreliable
What is qualitative and quantitative data?
Quantitative=numerical data
Qualitative=opinion and attitude data.
What is market segmentation?
group of buyers with similar wants and needs.
What can a market be segmented into?
location,income,lifestyle,gender,age,religion.
What are the benefits of market segmentation?
helps business understand their customers,easier to target product,higher levels of loyalty.
What is a competitive advantage?
advantage gained over other businesses which help them preform better than others.
How can a business gain a competitive advantage?
wider product range,better quality,stronger brand image,better customer service and better product display
