TOPIC 1.1.2 SPOTTING A BUSINESS OPPURTUNITY Flashcards
Choice
giving customers options and increasing
the chance that the product will be perfect for
the tastes/habits of one type of customer.
Convinience
making life easier for customers,
perhaps by a great location (next to the bus stop)
or a product that saves time in preparation or
consumption.
identifying customers
fi nding out who they are:
their age, gender, incomes, where they live and
what they want.
Quality
to a customer quality means getting
what they want, or perhaps better than
expected; some companies use the term
‘customer delight’.
understanding customers
: learning why
customers do what they do, making it easier
to see how to make a product that better suits them
focus group
a group discussion among people
selected from the target market; it draws on
psychology to provide qualitative insights into
consumer attitudes.
Primary ressearch
research conducted
fi rst-hand; it is tailored to a company’s specifi c
needs, for example a quantitative sales
estimate for a brand new chocolate bar.
qualititive data
in-depth research into the
opinions and views of a small group of potential
or actual customers; it can provide insight into
why consumers buy what they buy.
quantitive data
factual research among
a large enough sample of people to provide
statistically reliable results, for example a
survey of 500 people aged 15–24 years.
secondary research
when a company uses
research that has already been carried out for
general purposes.
Demographics
:the study of the statistical
differences that exist within a population, both
now and in the future.
Lifestyle
grouping people by common
characteristics in how they live, from their
participation in sports and leisure to their views
on the environment, taste in music and even
nerdier things such as a passion for trains
location
the extent to which consumers identify
with the place where they were born or grew up.
marget segments
the subsets within a market
that have been identifi ed as a result of market
segmentation.
(the) competition
companies operating in your
market or market sector.
gap in the market
an area on a market map
where few or no existing brands operate,
implying a business opportunity to fill an unmet
consumer need.
market map
measuring where existing brands
sit on a two-factor grid, for example young/old
compared with high price/low price.
Competitive environment
the strength of
competition between companies in the same
market.
innovative
a new, perhaps original, product or
process.
unethical
an action or decision that is wrong
from a moral standpoint.
