Identifying business ideas

Question 1

Market research

Answer 1

The process of collecting and analysing info about the target market.

Question 2

Reasons for conducting market research

Answer 2

1. To find out the size of the market: Find out the overall market size.
2. Identify Competitors: Find out info about competitors in the market.
3. Find out consumer needs and wants: Business identifies what the consumer wants
   from good or service.
4. Identify trends: Business may want to identify current and future market trends.

Question 3

Types of market research

Answer 3

1. Primary research (Field): Involves gathering first hand information from the
   marketplace
2. Secondary research(Desk): Involves gathering and reviewing existing info that has
   already been collected by others.

Question 3

Types of market research

Answer 3

1. Primary research (Field): Involves gathering first hand information from the
   marketplace
2. Secondary research(Desk): Involves gathering and reviewing existing info that has
   already been collected by others.

Question 4

Forms of Primary research

Answer 4

1. Observation: Market researchers watch consumers behaviours and learn from their
   reactions
2. Surveys: Market researchers conduct an interview with consumers or potential
   consumers.

Question 5

Forms of Secondary research

Answer 5

1. Business Reports: This info can help improve the business decision making.
2. Media: Newspaper, magazines and TV can provide valuable insight into market.

Question 6

Benefits of Market Research

Answer 6

1. Identify the target market: Market research reveals the target market, the people at
   whom the products is aimed at.
2. Reduce costs: Info from consumers can help the business to provide products that
   satisfy consumer needs and wants.
3. Forecast future trends: Market research can identify future market trends.
4. Identify problems: Can identify problems that consumers are experiencing

Question 6

Benefits of Market Research

Answer 6

1. Identify the target market: Market research reveals the target market, the people at
   whom the products is aimed at.
2. Reduce costs: Info from consumers can help the business to provide products that
   satisfy consumer needs and wants.
3. Forecast future trends: Market research can identify future market trends.
4. Identify problems: Can identify problems that consumers are experiencing with the
   firms product

Question 7

Development Process of a new product

Answer 7

1. Idea generation: Ideas for new products can come from internal sources such as R&D
   department and brainstorm sessions.
2. Product screening: All ideas generated are vetted and those deemed unworkable are
   dropped.
3. Concept development: When the idea is turned into an actual product to meet the
   need of consumers and the USP is identified.
4. Feasibility study: Feasibility study is carried to see if the product is commercially viable
5. Prototype development: The prototype can be used to test the product to see if any
   improvements or adjustments can be made to it.
6. Test marketing: Products is launched into a small section in the area.
7. Product launch: This is when the product is launched into the entire market.