Market Research and Feasibility Studies

Question 1

Market Research

Answer 1

The process of looking at who is likely to purchase your product or service and asking questions to know what they want and who will buy it, age, location and gender. Same for Suppliers

Market research is about knowing what the market for your business idea is. Its purpose is to determine who the potential customers and suppliers are, what they want or can supply and where they are located.

Question 2

What to consider when conducting market research?

Answer 2

• Are there any competitors?
• What do they charge
• How big is the market?
• Who will buy the product? (age, location, gender)

Question 3

Feasibility Studies

Answer 3

A feasibility study is the process of looking at the idea for a product or service that has been established through your market research and seeing if it will work.

Question 4

What to consider when doing a feasibility study?

Answer 4

• Assessment of the Market: Who will purchase it, where customers are located, current competitors.
• Consideration of Operation: What is needed to produce the product: Staff, labour, machinery. Where to locate business
• Commercial Feasibility: How long it will take to make a profit, how much money needed to set up businsess.
• Management Ability: Does manager have the skills needed to set up and run the business.
• Has it been done before?

Question 5

Difference between them

Answer 5

Market research is the process of finding out who is likely to purchase your product or service, where those potential customers are, what their ages are and what gender they are, then asking questions to know what they might want. Where as a feasibility study is the process of looking at the idea for a product or service that has been established through your market research and figuring out whether it will succeed or not.