1.2 Spotting a business opportunity (KEY VOCAB)

Market research

The process of gathering information about the market and customer needs

Primary market research

Carried out first hand, so is specific to the business

Secondary market research

Research using existing sources that have already been carried out

Sample

A portion of the population asked for their opinions in order to draw conclusions about the betravour of the whole population

Biased

Unbalanced or inclined to agree with a particular judgement or idea rather than presenting the evidence fairly

Quantitative data

Numerical data

Focus groups

Getting a group of customers together to gain insights into their attitudes towards a business

Market segmentation

Dividing a larger group of customers from a market into smaller groups with similar characteristics

Demographics

Splitting the population into different structures

SWOT Analysis

A tool used by businesses to identify their internal strengths and weaknesses and external opportunities and threats

Market map

A diagram used to help spot a gap in the market and identify competition