GCSE Business 9-1: Theme 1: Investigating Small Business 1.2. Spotting a Business Opportunity

Question 1

What are the basic customer needs?

Answer 1

Price, quality, choice, convenience

Question 2

What is market segmentation?

Answer 2

is the process of breaking down the market into groups of consumers with similar needs and wants.

Question 3

What is market mapping?

Answer 3

is the process of creating a diagram, known as a market map that identifies all products in a market and maps them against two of their features e.g. price and quality.

Question 4

What does a market map allow?

Answer 4

Identify its competitors, Spot gaps in the market

Question 5

What is gap in the market?

Answer 5

is space in the market where there are potential customer but no product currently appeals to them.

Question 6

What is the target market?

Answer 6

means the type of people (market segments) you are selling to.
Market segments can be based on combinations from the following factors:
Age, Gender, Area, Ethnicity, Religion, Hobbies and interests, Income / Socio-economic group

Question 7

Benefits of identifying your target market

Answer 7

• Helps you provide the right products
• Helps you set the right prices
• Helps you choose the best advertising media and advertising content
• Helps ensure that your market research is carried out with the right type of people.

Question 8

What is market research?

Answer 8

is the process of collecting and analysing data about the market, who operates within the market and the customers within the market.

Question 9

What is primary research?

Answer 9

means obtaining new information:

e.g. survey, focus group or observation

Question 10

Primary Research:

Answer 10

Advantage: up to date, relevant and specific to your products
Disadvantage: Expensive, time consuming, needs large sample size to be accurate

Question 11

What is secondary research?

Answer 11

means using existing information: e.g. data about the whole market or about competitors.

Question 12

Secondary research:

Answer 12

Advantage: Cheaper, easily found, instantly available
Disadvantage: Not always relevant, not specifically about your products, often out of date

Question 13

What is qualitative data?

Answer 13

is descriptive data that cannot be measured in numbers

Question 14

What is quantitative data?

Answer 14

is numerical data.

Question 15

What is validity of data?

Answer 15

is a measure of how good the design and methods of research are and suggest whether the findings from the research can be trusted.

Question 16

What is reliability of data?

Answer 16

is an indication of whether the research results from a sample are representative of a wider group of the population as a whole.

Question 17

What is Swot Analysis?

Answer 17

is a study undertaken by a business to identify the strengths and weaknesses, opportunities and threats of the business.