TOPIC 1.1.2 SPOTTING A BUSINESS OPPURTUNITY

Question 1

Choice

Answer 1

giving customers options and increasing
the chance that the product will be perfect for
the tastes/habits of one type of customer.

Question 2

Convinience

Answer 2

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.

Question 3

identifying customers

Answer 3

fi nding out who they are:
their age, gender, incomes, where they live and
what they want.

Question 4

Quality

Answer 4

to a customer quality means getting
what they want, or perhaps better than
expected; some companies use the term
‘customer delight’.

Question 5

understanding customers

Answer 5

: learning why
customers do what they do, making it easier
to see how to make a product that better suits them

Question 6

focus group

Answer 6

a group discussion among people
selected from the target market; it draws on
psychology to provide qualitative insights into
consumer attitudes.

Question 7

Primary ressearch

Answer 7

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.

Question 8

qualititive data

Answer 8

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.

Question 9

quantitive data

Answer 9

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.

Question 10

secondary research

Answer 10

when a company uses
research that has already been carried out for
general purposes.

Question 11

Demographics

Answer 11

:the study of the statistical
differences that exist within a population, both
now and in the future.

Question 12

Lifestyle

Answer 12

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

Question 13

location

Answer 13

the extent to which consumers identify
with the place where they were born or grew up.

Question 14

marget segments

Answer 14

the subsets within a market
that have been identifi ed as a result of market
segmentation.

Question 15

(the) competition

Answer 15

companies operating in your
market or market sector.

Question 16

gap in the market

Answer 16

an area on a market map
where few or no existing brands operate,
implying a business opportunity to fill an unmet
consumer need.

Question 17

market map

Answer 17

measuring where existing brands
sit on a two-factor grid, for example young/old
compared with high price/low price.

Question 18

Competitive environment

Answer 18

the strength of
competition between companies in the same
market.

Question 19

innovative

Answer 19

a new, perhaps original, product or
process.

Question 20

unethical

Answer 20

an action or decision that is wrong
from a moral standpoint.