T1.2 - spotting a business opportunity

Question 1

What are competitors?

Answer 1

different businesses that sell same product in same market

Question 2

What is market size?

Answer 2

number of individuals within the market which are potential buyers or sellers of products

Question 2

What is market share?

Answer 2

proportion of total sales within the market that is controlled by the business

Question 2

What are the customer needs? x4

Answer 2

-price
-quality
-choice
-convenience

Question 3

What is the purpose of purpose of market research? x4

Answer 3

● identify customer needs
● spot gap in the market
● reduce risk
● make informed business decisions.

Question 4

primary research examples? x4

Answer 4

-survey
-questionnaire
-focus group
-observation

Question 5

secondary research examples? x3

Answer 5

-articles/internet articles
-market reports
-government reports.

Question 6

Advantage of observations? x2

Answer 6

-cheap
-accurate

Question 7

Disadvantage of observations? x1

Answer 7

-customers cant give opinions

Question 8

advantage of questionnaires?x2

Answer 8

-cheap
-can sample large area

Question 9

disadvantage of questionnaires?x1

Answer 9

-people may not respond

Question 10

advantage of surveys?x1

Answer 10

high response rate

Question 11

disadvantage of surveys?x1

Answer 11

expensive

Question 12

advantage of focus group? x1

Answer 12

-quick

Question 13

disadvantage of focus group? x1

Answer 13

-quiet people cant share opinions

Question 14

Advantage of secondary research? x2

Answer 14

-cheaper
-easy to get

Question 15

Disadvantage of secondary data? x1

Answer 15

-not tailored to needs

Question 16

categories of market segmentation? x4

Answer 16

-age
-income
-location
-lifestyle

Question 17

What do market maps find out? x2

Answer 17

-gaps in the market
-competitors selling similar products and how customer perceive them