Topic 1.2 Spotting a business opportunity

Question 1

What can the word market mean?

Answer 1

• place
• type of product
• potential customers

Question 2

What is a competitor?

Answer 2

a different business who is selling the same product, in the same market

Question 3

Most businesses face competition, what does a business need to do to stand out?

Answer 3

make decisions

Question 4

What are the strengths and weaknesses or a business?

Answer 4

price, customer service, quality, product range, location

Question 5

What is an example of what a business would want to find after performing market research?

Answer 5

market size and the businesses market share

Question 5

What is market research?

Answer 5

research performed in order to find about the market and how its performing

Question 6

What is market size?

Answer 6

the number of individuals within the same market which are potential buyers or sellers, or total value of a product

Question 6

What is the market share of a business?

Answer 6

the proportion of total sales within the market controlled by the business, as well as understanding the businesses place

Question 6

What can market research be used for?

Answer 6

understand the customer, and identify who the businesses customers are = market segmentation

Question 7

What can customer needs include?

Answer 7

• type of product
• quality of product
• the price
• convenience
• choice

Question 8

Using market research to understand customers and their needs helps businesses to…?

Answer 8

• make informed decisions
• spot a gap in the market
• reduce risks

Question 9

What is primary research?

Answer 9

getting information from customers or potential customers

Question 10

What are some forms of primary research?

Answer 10

asking their opinions; questionnaires, surveys and focus groups

Question 11

What does observation mean?

Answer 11

observing what people do or say instead of asking them

Question 12

What does large sample mean?

Answer 12

most accurate but most expensive

Question 13

How can businesses save on costs?

Answer 13

research over telephone or internet

Question 14

A positive to primary research?

Answer 14

up-to date, relevant and specific

Question 15

A negative to primary research?

Answer 15

expensive, time-consuming

Question 16

What is secondary research?

Answer 16

data that has already been collected, used for looking at the whole market

Question 17

What does secondary research involve?

Answer 17

looking at market research reports, governments reports, articles

Question 18

What type of business often uses secondary research?

Answer 18

small businesses = cheap

Question 19

What is a disadvantage of secondary research?

Answer 19

not always relevant, not specific about your product

Question 20

What can be used for market research?

Answer 20

social media

Question 21

Why is social media used for market research?

Answer 21

quick and easy to access, see what people are interested in

Question 22

What does quantitative data mean?

Answer 22

is info that you can measure or reduce to a number

Question 23

What is qualitative data mean?

Answer 23

info about about peoples feelings and opinions

Question 24

Why does all market research need to be reliable?

Answer 24

results can be reliable and repeated, represents the people that the business is interested in

Question 25

What can a business do with their results of market research?

Answer 25

make decisions, on how to sell a product, promote itself, its pricing or the place

Question 26

What does segmenting a market do?

Answer 26

help a business to figure out who exactly they are most interested in, also to make a market map

Question 27

What is segmentation?

Answer 27

When people within a market are divided into different groups

Question 28

What can knowing the different market segments can allow business to identify?

Answer 28

target market

Question 29

What is a target market?

Answer 29

A group of people a people a business aims to sell their product to

Question 30

After discovering their target market what can a business do?

Answer 30

create a marketing strategy aimed at their target market to make sure it’s as accurate as possible

Question 31

How can a market be segmented?

Answer 31

demographics

Question 32

What are examples of identifiable characteristics?

Answer 32

age and income

Question 33

Other ways to a segment to a market?

Answer 33

location and lifestyle

Question 34

What does mapping the market help the business to understand?

Answer 34

it’s location within the market, and it’s key features

Question 35

How can a business use a market map to find out?

Answer 35

competitors selling similar products
any gaps in the market

Question 36

What are the two variables that a target market show?

Answer 36

price and quality

Question 37

What does the map allows the business to see?

Answer 37

key features

Question 38

Once a business has found a gap in the market, what will the business need to do?

Answer 38

use market research to confirm it

Question 39

After finding out their is a definite gap in the market, what does the business focus on?

Answer 39

the product it’s making with features that link to the demand