Spotting a business opportunity

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60 Terms

1
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What is market research?

The process of collecting information to help a business succeed and understand customers

2
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Why do businesses conduct market research?

To identify customer needs and spot gaps in the market

3
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What are some customer needs market research looks at?

Price, quality, choice and convenience

4
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What must a business provide to succeed?

The right product, at the right price, in the right place, at the right time

5
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How does market research help reduce risk?

By helping the business make informed decisions

6
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What is a gap in the market?

An area where there is demand for a product or service not currently being met

7
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Why is spotting a gap in the market useful?

It gives a new business a better chance of success with less competition

8
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What information can market research reveal?

Customer wants, unmet needs, competition, target market, pricing

9
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What is the benefit of making informed decisions?

It increases the chances of business success

10
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What is primary market research?

New research a business conducts itself to gather original data

11
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What are examples of primary research methods?

Surveys, questionnaires, focus groups and observations

12
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What is a survey?

A way to ask questions and gather customer opinions and experiences

13
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What are methods for conducting surveys?

Online questionnaires, paper-based questionnaires, interviews, focus groups

14
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What are the advantages of primary research?

It’s specific, detailed, relevant, up to date, and collects different types of data

15
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What are the disadvantages of primary research?

It can be time-consuming, expensive and hard to collect

16
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What is secondary market research?

Research using existing data that has already been produced

17
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What are internal sources of secondary research?

Data from within the business, such as sales records

18
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What are external sources of secondary research?

Internet research, market reports, government publications

19
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What are examples of internet research sources?

Competitor websites, newspaper articles, social media

20
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What do market reports provide?

Industry-specific information

21
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What do government reports provide?

General data that may still help business decisions

22
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What are some decisions businesses make using secondary research?

Pay levels, target markets, product development

23
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What are the advantages of secondary research?

Quick, easy, often industry-specific, and simple to analyse

24
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What are the disadvantages of secondary research?

Not specific, might be out of date, may be biased or inaccurate

25
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What is qualitative data?

Opinions and descriptive info from open-ended questions

26
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What are the disadvantages of qualitative data?

Time-consuming and costly to analyse

27
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What is quantitative data?

Numerical data from closed questions like yes

28
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What are the advantages of quantitative data?

Quick, simple, easy to analyse and present in graphs

29
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What is a downside of quantitative data?

Lacks detailed opinions

30
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How can social media help in market research?

Reaches many people, cheap or free, fast data collection, spots trends

31
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Why is reliable data important?

It helps businesses make informed decisions and reduces risk

32
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What can unreliable data lead to?

Poor decisions, wasted money, unsold products, and business failure

33
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What is market segmentation?

The process of splitting a business’ target market into different groups

34
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Why do businesses use market segmentation?

To develop products aimed at certain groups more effectively

35
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What is geographical segmentation?

Splitting up a market by location

36
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What does demographic segmentation consider?

The characteristics of people

37
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What are examples of demographic characteristics?

Age, gender, race, religion, nationality, disability, ethnicity, sexual orientation, occupation

38
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What does behavioural segmentation consider?

How people behave in relation to purchases at different times or in different situations

39
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What does lifestyle segmentation consider?

What sorts of lives the people in a business’ target market lead

40
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What does income segmentation consider?

How much people earn and their disposable income

41
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What is market mapping?

Using a graph to plot competitors and their products

42
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Why do businesses use market mapping?

To understand competitor behaviour and spot a gap in the market

43
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What two elements are commonly measured on a market map?

Quality and price

44
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Why is understanding competitors’ strengths and weaknesses important?

To make better business decisions

45
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What is a competitor?

Any business that sells the same or similar products or services

46
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What does USP stand for?

Unique selling point

47
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What does price refer to?

How much a product or service costs to purchase

48
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What does quality refer to?

How well a product is made

49
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What does convenience refer to?

How easy something is to purchase

50
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What does product range refer to?

The number and types of products or services sold by a business

51
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Why is customer service important for a small business?

It helps attract and retain customers

52
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Why is competition between businesses good for customers?

It leads to good-quality products and services at the right price

53
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What does competition encourage businesses to do?

Keep updating and bringing out new products and services through innovation

54
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Why can competitors be problematic for businesses?

Because some competition can be territorial

55
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What are the four main customer needs a small business must consider?

Price, quality, choice, convenience

56
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Why is generating sales easier with a clear idea of customers?

Because the business can meet customers’ requirements

57
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What does meeting customer requirements enable a business to do?

Provide a product or service that meets their needs

58
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What is one of the main aims of a new, small business?

Survival

59
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What does survival usually mean for a new business?

Continuing to operate for at least 12 months

60
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What is key to business survival?

Keeping up with the changing requirements of customers