Spotting a business opportunity

what are customer needs?

being aware of what customers need and fulfilling their requirements

what are four customer needs?

price, quality, choice and convenience

What are 4 market research methods (excluding quantitive and qualitative methods)

Social media, method and technique, reliable data, setting objectives

what is the different between quantitative and qualitative data?

quantitive is number-based, qualitative is opinions

why is quality a customer need?

they will expect and require certain quality

why is price a customer need?

customers expect a reasonable price for what they’re receiving

what is competition and choice when deciding customer needs?

most customers want a range of options to be had, including more personalised options

what factors affect a product’s convenience?

digital presence, opening hours and location

what has the shift in customer needs been?

companies have been forced to make more personalised products as there is too much competition

what will a new entrepreneur do when finding out customer needs?

market research

once will an entrepreneur do once they conduct market research?

design a good or service which meets customer needs and decide a price

what is the main benefit of doing market research before launching a business?

it increases a business’ survival rate

what are fundamental issues that can be understood through market research?

size, speed, history, segment and customer archetype of a market

what is the aim of market research?

to gather information

what are areas market research can be used for?

target market, promotion, demand and gaps

what is a limitation of market research?

no data is entirely accurate

what is primary and secondary data?

primary is first-hand collected business, secondary is data which already exist

what are other names for primary and secondary data?

field and desk research

what is amain disadvantage of primary research?

it’s often time-consuming and expensive

what are 4 types of primary research?

observation, surveys and questionnaires, interviews and focus groups

what are five secondary research methods?

government information, competitor websites, customer reviews, trade associations, newspapers and reports

what is an advantage of secondary research?

it costs less and is quicker and easier to obtain

what are some disadvantages of secondary research?

broad purpose, invalid, biased, easily accesible

what is the aim of qualitative research?

to understand why customers behave or respond to a product

what are common ways qualitative data is collected?

focus groups and interviews

what questions does quantitive data handle?

who, when, where, how often and how many

what is the main way data is expressed?

numerical form/statistical

what are advantages of social media for market research?

quick, statistics, gaining information, promotional use

what are disadvantages of social media for market research?

invalid opinions, negativity, staff training, time-consuming

what are three reasons data may be unreliable?

bias, out of date, inaccurate

what is market segmentation?

splitting the potential customers into certain groups to concentrate certain products

what are benefits of market segmentation?

meeting customer needs, better growth, effective promotion, higher market share

what are demographic segmentation factors?

age, gender, income, location, lifestyle, social class

what are limits of segmentation?

lack of info, difficult to predict consumer behaviour, hard to reach

what is market mapping?

positioning products to decide which factors they focus on

what are two common examples of market map labels?

Expensive v Cheap, High quality v Low quality

why might a market map be used?

to identify gaps in the market

what is one ting to consider when finding gaps in the market through market maps?

there may be a reason why there is a gap in the market, and the demand may be low

what does a business have if it has low competition?

considerable market power

what is a market?

a place where similar goods and services are bought or sold

what is a solution to having direct product competition?

changing the a product’s design, quality or price

what is a solution to having direct price competition?

lowering the price

what is a risk with lowering prices to avoid competition?

you may enter a price war

what is indirect competition?

competition where consumers buy products with similar characteristics but not the same type of product

what can a business do if it has no competition?

make higher prices

what is a drawback from a business with no competition?

it may lack quality and creativity