1.2 SPOTTING A BUSINESS OPPORTUNITY

ive made physcial flashcards for market segmentation/mapping, comp and customer needs

MARKET SEGMENTATION

How do business usef market segmentation to target customers

business sue M/S through targetting the buyers HABITS

identitfying the..

¬ demographics

¬lifestyle / location/income

¬gender + age

MARKET APP:

• used to comapre products in the market

• identify gaps

• and find varibales in products in case of possible opputunities

(4) understanding the competitibve enviroment

Differentiation is important to get a customer advantage, customer environment meaning potential customers. anaylysing strengths/ weaknesses help this happen

they compete on:

PRICE/ convenience + choice/ QUALITY

(4) competitive markets

wht are the impacts on decision making?

what is the concept of it?

def= number of potential customers, where its also high in markets WHERE businesses very similar products + services

¬ harder to differentiate

DECISION MAKING includes..

• based on choice + conveinence/QUALITY/PRICE

• sperical offers

• differentation to compete

DRAWBACK

• lower prices tTO compete

• accept lwoer PROFIT margins

@ consumers BENFIT from comp cos betetr improved services/ proce

(2) Market research

what is the purpose of it?

the purpose of market research is to

1. identify and udnerstanding customer needs

¬ + gaps in the market

2. to reduce risk

3. to inform business decisions

(2) TYPES of market reasearch

PRIMARY research - individual research

survey/ questionaire/focus group/ observation

SECODNARY - already given

internet/market + goc reports

QUALITIVE/QUNAITIIVE data can effet the research, alongside the quanitity of numbers, influecing the liabillity

scoial media can be effective for trends and feedback