T1.2 - spotting a business opportunity Flashcards
What are competitors?
different businesses that sell same product in same market
What is market size?
number of individuals within the market which are potential buyers or sellers of products
What is market share?
proportion of total sales within the market that is controlled by the business
What are the customer needs? x4
-price
-quality
-choice
-convenience
What is the purpose of purpose of market research? x4
● identify customer needs
● spot gap in the market
● reduce risk
● make informed business decisions.
primary research examples? x4
-survey
-questionnaire
-focus group
-observation
secondary research examples? x3
-articles/internet articles
-market reports
-government reports.
Advantage of observations? x2
-cheap
-accurate
Disadvantage of observations? x1
-customers cant give opinions
advantage of questionnaires?x2
-cheap
-can sample large area
disadvantage of questionnaires?x1
-people may not respond
advantage of surveys?x1
high response rate
disadvantage of surveys?x1
expensive
advantage of focus group? x1
-quick
disadvantage of focus group? x1
-quiet people cant share opinions
Advantage of secondary research? x2
-cheaper
-easy to get
Disadvantage of secondary data? x1
-not tailored to needs
categories of market segmentation? x4
-age
-income
-location
-lifestyle
What do market maps find out? x2
-gaps in the market
-competitors selling similar products and how customer perceive them
