1.2 business spotting a business opportunity

Cards (15)

  • what are advantages of secondary market research
    fast
    easy
    effective at collecting quantitative data
  • what are disadvantages to secondary market research
    outdated
    not specific
    can be unreliable due to bias
  • why is it important for data to be reliable
    so businesses can make accurate business decisions, therefore reduce the risk of business failure
  • how can a market be segmented
    lifestyle
    age
    income
    demographics
    location
    gender
  • what are advantages of market segmentation
    meet specific customer needs
    differentiate its products
  • what are disadvantages of market segmentation
    can be expensive to offer a range of products that meet all customer needs
    can miss other opportunities if you focus on ne group
    characteristics change overtime e.g. income and demographics
  • what is market mapping
    a diagram that can be used to position and compare products in a market
  • what are the advantages of market mapping
    can identify gaps in the market(opportunities)
    can identify competitors
  • what are disadvantages of market mapping
    based on opinions rather than accuracy
    compares businesses on 2 variables(too simple)
  • what is a competitor
    any business that sells the same or similar products or services
  • what are the methods to compare a competitive market(strengths and weaknesses in competitors)
    price
    quality
    design
    location
    product range
    customer service
    brand image
  • what is differentiation
    making a product different from others
  • how does product differentiation help a business
    gain a larger competitive advantage(gain a larger market share)
  • what is a competitive market
    a market with a large number of businesses relative to the number of potential customers or when competition is high when the competitors sell similar products and services that are hard to differentiate
  • how does competition impact decision making
    businesses have to offer good quality and reasonable price, and also innovate new ideas to meet customer needs