Spotting a business opportunity Flashcards
What are customer needs
Price, Quality, Choice and Convenience
Importance of identifying and understanding customers
Generates sales
Business survival
Why do we conduct market research?
To identify gap in the market
reduce risk
inform business decisions
identify and understand consumer needs
Methods of primary research and examples?
Primary research is finding new information about customer needs
examples are surveys, questionnaires, focus groups, observations
secondary research involves using information which has already been published to find the information about the market the business is thinking about entering.
examples are government reports, internet, and market reports
Two types of data?
Qualitiative data can’t be expressed in numbers whereas quantitative data is data that’s expressed in numbers
evaluate qualitative data
- lots of data gathered
- time consuming to analyze as they’re all individualistic data.
How to increase reliability of market research data?
Selecting a large enough sample of potential customers
selecting members of a sample to be representative of the target population
doing market research throughout the life of the business to detect changes in customer needs and attitudes.
What are the market segments that can be used to target customers
Age, demographics, income, location, lifestyle
market mapping identified a gap in the market and the competition which gives you competitive advantage
Benefits of having accurate market research
Strengths and weaknesses of competitors based on price, location, product range, customer service and quality.
