Topic 1.2- Spotting A Business Oppurtunity

Question 1

what are the four customer needs? -x

Answer 1

• price
• quality
• choice
• convenience

Question 2

Give 3 reasons why it is important to identify customer needs?- x

Answer 2

• to generate sales
• business survival
• customer loyalty

Question 3

what is the purpose of market research ? ( 3)

Answer 3

• to identify and understand customer needs
• to identify gaps in the market
• to reduce risk
• to inform business decisions

Question 4

what is primary research?

Answer 4

research you conduct yourself

Question 5

what is secondary research?

Answer 5

research that has already been conducted

Question 6

give 3 examples of primary research

Answer 6

• surveys
• focus groups
• observation

Question 7

give 3 examples of secondary research

Answer 7

• internet
• government reports
• market reports

Question 8

Give 3 advantages of primary market research

Answer 8

• specific to the business
• relevant and up to date
• contains detailed information

Question 9

Give 3 disadvantages of primary market research

Answer 9

• expensive
• difficult to collect
• time-consuming

Question 10

what are the advantages of secondary market research

Answer 10

• quick and easy to gather
• provides industry-specific info
• often easy to analyse

Question 11

Give 3 disadvantages of secondary market research

Answer 11

• not specific
• may be biased
• out of date

Question 12

what is quantitative data

Answer 12

• data is based on numbers and statistics

Question 13

what is qualitative data?

Answer 13

• data is based on opinions and judgements

Question 14

what is market segmentation?

Answer 14

• the process of splitting a business’ target market into different groups

Question 15

Name 4 different market segments

Answer 15

• location
• lifestyle
• income
• age
• gender

Question 16

what is market mapping?

Answer 16

the process of using a graph to plot competitors and their products

Question 17

Give 2 uses for market mapping

Answer 17

• to understand competitor behaviour

- to identify a gap in the market

Question 18

Give an advantage and 3 disadvantages of qualitative data

Answer 18

adv:
- in-depth data given 
disv :
- slower to gather
- difficult to analyse data
- harder to make business decisions from

Question 19

Give 3 advantages and disadvantages of quantitative data

Answer 19

adv:
- easier and quicker to gather
- examine larger samples
- easier to make decisions 
disv:
- narrow/closed questions
- does not allow in-depth data to be given