1.2 Spotting a business opportunity

What are the four customer needs?

price, quality, choice, convenience

What are two benefits of meeting customer needs?

Helps a business generate more sales, helps business survival

What is the purpose of market research?

1. To identify and understand customer needs

2. To identify gaps in the market

3. To reduce risk

4. To inform business decisions

What are the four methods of primary research?

survey, questionnaire, focus group, observation

What are the three methods of secondary research?

internet, market reports, government reports

The role of social media in collecting market research

1. Deepens understanding of the market

2. Identifies popular trends

3. Improves their products and marketing

4. Saves time conducting research

The importance of reliability of market research data

1. Inaccurate data can lead to businesses making the wrong decisions.

2. Mistakes are usually traced back to the validity of the market research and the reliability of the data.

What are the five main market segments?

Location, demographics, lifestyle, income, age

What are the five key competitor strengths and weaknesses?

Price, quality, location, product range, customer service

Impacts of competition on decision making

1. Affects price

2. Forces business to reduce costs

3. Forces businesses to innovate