Business - Topic 2 - Spotting a Business Opportunity

What are the customer needs?

• Price

• Quality

• Convenience

• Choice

Why is price important to customers?

• Customers seek products or services at a cost they perceive as fair or valuable

• Price is often a key factor in purchasing decisions

Why is quality important to customers?

• Customers expect products or services to meet a certain standard of excellence or reliability.

• Quality can influence customer satisfaction and loyalty

Why is choice important to customers?

• Customers appreciate having options to select from. Variety allows customers to find products or services that best suit their specific needs.

Why is convenience important to customers?

Customers value ease of access and use in products or services. This includes factors like location, availability and user-friendliness.

What is identifying and understanding customers important for?

• Generating sales

• Business survival

Why is identifying customer needs important for generating sales?

• Understanding customer needs helps businesses tailor their offerings to meet demands.

• This alignment between products/services and customer needs can drive sales and revenue

Why is identifying customer needs important for business survival?

• Knowing customer needs is crucial for long-term business viability.

• It allows companies to adapt to changing market conditions and customer preferences

• Businesses that fail to understand their customers, risk losing market share or becoming obsolete

What’s primary research?

This involves collecting firsthand data directly from sources through methods such as

• Surveys

• Questionnaires

• Focus groups

• Observation

How do surveys gather primary research?

Structured questions to gather quantitative and qualitative data.

How do questionnaires gather primary research?

Written tools for specific information on preferences and behaviour.

How do focus groups gather primary research?

Discussions with small groups to gain qualitative insights.

How do observations gather primary research?

Watching customer behaviour in natural setting

What’s secondary research?

This involves analysing existing data from various sources including:

• The Internet

• Market Reports

• Government Reports

How does the internet gather secondary research?

Online resources and articles for market trends

How do market reports gather secondary research?

Publishes analysis by research firms on specific industries

How do government reports gather secondary research?

Official statistics and studies providing valuable economic and demographic data.

What’s the purposes of doing market research?

• To identify and understand customer needs

• To identify gaps in the market

• To reduce risk

• To inform business decisions

Why do businesses want to identify and understand customer needs?

It helps businesses gather insights into customer preferences and behaviours, allowing for tailored products or services.

Why do businesses want to identify gaps in the market?

It uncovers unmet needs or undeserved segments, creating opportunities for new offerings.

Why do businesses want to reduce risk?

By analysing data and trends, market research mitigates risks associated with new product launches or market entries.

Why do businesses want to inform business decisions?

It provides valuable insights that guide strategic planning and decision-making across various aspects of the business?

What’s qualitative data?

Qualitative data focuses on opinions and behaviour.

What’s quantitative data?

Quantitative data involves numerical data that answers specific questions.

What is the role of social media in collecting market research data?

• Provides real-time consumer insights and trends

• Offers a platform for direct customer engagement

• Allows for monitoring of brands mentions and sentiment

• Enables analysis of consumer behaviour and preferences at scale

What’s the importance of the reliability of market research data?

• Ensures business decisions are based on accurate information

• Helps avoid costly mistakes due to faulty data

• Increases confidence in strategic planning and decision-making

• Enhances the creditability of research findings for stakeholders

How do businesses use target segmentation to target customers?

• Identifying market segments : location, demographics, lifestyle, income and age

• Market mapping to identify a gap in the market and the competition

How can businesses use location to target customers?

Tailoring products and services to local preferences. Geographic segmentation based off of regions, cities or countries.

How can businesses use demographics to target customers?

Factors like gender, education level, occupation allows for targeted marketing based on specific group characteristics.

How can businesses use lifestyle to target customers?

Psychological segmentation based on interests, values and attitudes.

How can businesses use income to target customers?

Segmentation based off of economical status. Enables pricing strategies and product offerings suited to different income levels.

How can businesses use age to target customers?

Generational segmentation. Helps tailor products and marketing to age specific needs and preferences.

What is market mapping and how does market mapping identify gaps in the market and the competition?

• Market mapping identifies gaps in the market by visualising product positioning

• It analyses competition to spot underserved areas.

What do businesses consider about price when analysing competitors?

• Competitive pricing strategies

• Ability to offer discounts

What do businesses consider about quality when analysing competitors?

• Product durability and reliability

• Perceived value for money

What do businesses consider about location when analysing competitors?

• Accessibility to target markets

• Distribution chancels and reach

What do businesses consider about choice when analysing competitors?

• Variety of offerings

• Ability to meet diverse customer needs

What do businesses consider about customer service when analysing competitors?

• Responsiveness to customer inquires

• After-sale support and policies

How can competition affect pricing strategies?

• May lead to price adjustments to remain competitive

• Could influence decisions on discounts or promotions

How can competition affect product development?

• Drives innovation to differentiate from competitors

• May lead to expansion or modification of products

How can competition affect marketing efforts?

• Shapes marketing messages to highlight unique selling point

• Influences choice of marketing tactics

How can competition affect operational efficiency?

Encourages cost-cutting measures to maintain profitability

May lead to process improvements to enhance competitiveness

How can competition affect strategic planning?

Influences long-term business strategies and goals

May lead to decisions on marketing positions or expansion