2.1 - Purpose of Market Research Flashcards
What is market research?
Gathering information about consumers’ needs and preferences.
Why do businesses carry out market research?
To identify and understand customers better.
Name six reasons why businesses do market research.
- To reduce risks
- Aid decision making
- Understand the market
- Understand customer needs
- Understand market positioning
- Inform product development.
How does market research reduce business risk?
It helps predict customer reactions before launching products.
Why is market research useful for decision making?
It shows options, pros, cons, so businesses make informed decisions—not guesses.
How does market research help understand customer needs?
It shows what customers like, dislike, and want improved.
What does market positioning mean?
Understanding where your product fits vs competitors and identifying new opportunities.
How does market research inform product development?
It helps improve current products or create new ones that customers want.
When should entrepreneurs carry out market research?
When starting up to check if their idea is realistic.
When should established businesses do market research?
Regularly— to check if customer needs are met, products need improving, or new products are needed.
What are the four steps of the market research process?
- Collect information
- Analyse findings
- Make decisions
- Repeat the cycle.
