1.2.1 + 1.2.3 spotting a business opportunity: market research + market map

what is market research

-identifying and understanding needs of customers -identifying needs of customers

aims of market research

collect imformation,which help business be more successful and spot gaps in the market

what is primary market research and examples

collecting new data and information using, surveys,questionaire,focus group, observation

what are advantages/disadvantages of market research

provides imformation,specific to business,revalent

time consuming, expensive

what is secondary research and examples

gathering existing data already made using: internet research, government reports e.g. census, market reports

what are advantages/disadvantages of secondary research

-easy to analyse, easy to get

-not specific to business, inaccurate, outdated

what is qualitative research and some disadvantages

Research which is detailed and uses open ended questions. It can be time consuming and costly to gather

what is quantitative research and some disadvantages

usually numerical data gathered using yes or no responses can be expressed in graph or chart a disadvantage is it can lack specific opinions

using social media for social media what are the benefits

cheaper and free, save times, businesses can spot latest trends, can see what customers want, can spot gap in market

what are the advantages of reliable market data

-businesses can make good decisions

-reduces risks

-less money wasted

-higher chance of business success

what are the consequences of not having reliable market data

business making unwise decisions, can cost business money, business failure

what is market segmentation

splitting businesses target markets into different groups. These groups make it easier to develop products aimed at certain people and help target the marketing

what are these group of market segmentation

location, demographics, lifestyle, income, age segmentation

what is demographic segmentation

considers characteristics of people like age,gender,race,religion, e.g. make up artist target womem

what is behaviour segmentation

how people behave in relation to purchase at different times of the year in different situations e.g. at birthdays

what is lifestyle segmentation

considering what sort of lives people in a business target market lead

what is income segmentation

considering how much people earn and there disposable income

what is market mapping

process of using graph to plot competitors products to see competitor behaviour and spot gap in the market

why is market mapping displayed as graph

to show entrepreneur where gaps in market exist

things measured on market map

quality, price, taste, budget, age of target market, gender, level of luxury