1.2 Spotting a business opportunity

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What’s market research?

provides information about:

• market itself

• customer feedback

• competitors

• effect on price of market

quantitive data

as in ‘quantity’

• usually expressed numerically

• generally expressed in a graph/chart

advantages: simple & quick to analyze

disadvantage: lack specific opinion & doesn’t allow a business to see what customers think

qualitive data

as in ‘quality’ - expressed as opinions

advantages: descriptive, gained by using an open-ended questions

disadvantages: time-consuming, costly to gather, analyze, hard to interpret

market segmentation meaning

process of splitting a business’ target market into different groups

eg, location, lifestyle, age etc

what’s market mapping?

process of using a graph to plot competitors & their products to understand their behavior and spot a gap in the market

—> things such as price, quality, duration are looked at

What’s a competitive environment?

relates to how a business is affected by its competition

‘gap in the market’ meaning

refers to place in the market where there’s a demand for a product/service but little to no supply

What’s the marketing mix?

The 4 P’s

• Price, product, place, promotion

Primary market research

you find it urself

Advantages:

• more detailed insights

• directly focused on research objectives

Disadvantages:

• time consuming

• costly to obtain

Secondary market research

information from other sources

Advantages:

• free

• easy to obtain

• quick to access

disadvantages:

• unreliable

• not tailored to a businesses needs