business- spotting a business opportunity

1.2

what are competitors

different businesses that sell the same products in the same market and compete over sales

what is market share

the proportion of total sales within the market that is controlled by the business

what is market size

the number of individuals within the market which are potential buyers or sellers of products

what are the areas a business might look at strengths and weaknesses in

price

customer service

quality

product range

location

what does market research help to do

helps to understand a customers needs and know what the business owner needs to do in order to improve there business and get the best things out of it

help make informed decisions

reduce risks

spot a gap in the market

what is primary research

involves getting information from customers and is you doing your own work

most forms= asking customers for there opinions

what is secondary research

is looking at other peoples work

it allows access to a wide range of data

often used by small businesses as it is cheaper

how can social media help market research

businesses can see what sort of products are popular or increasing in popularity

social media is also a good way of advertising and promoting your product

what is quantitative data

is anything that you can measure or reduce to a number

what is qualitative data

is all about how people feel and there opinions

however it can be tricky to analyse because it is hard to compare 2 peoples opinions

what can you use market research for

to inform decisions that a business should make eg how a product sells, how much it promotes

what is market segmentation

is when people in the market are divided into different categories, businesses can then create a marketing strategy in order to reach their target market to make sure that it is effective as possible

what categories can a market be sectioned in to

age

income

location

lifestyle

gender

what does mapping the market do

it helps a business to understand its location within the market and the markets key features, often done by using a diagram