Business

• Market research


  Gathering information about customers' attitudes, behaviour and wants in relation to a product or service
• Market research


  1. Done before entering a new market

  2. Done at various times while operating in a market
• Reasons businesses need market research

  • New products are expensive to launch
  • Importance of maintaining market share
  • Importance of preserving the profile and brand value of existing products
• Primary research


  Data collected first hand by the entrepreneur, for a specific reason e.g. questionnaires, focus groups
• Benefits of primary research

  • Only available to you
  • Up to date
  • Targeted at specific needs
• Drawbacks of primary research

  • Expensive
  • Time consuming
  • Can be biased
• Secondary research


  Data that already exists, collected by someone else
• Benefits of secondary research

  • Inexpensive
  • Enables cost-effective analysis of several data sources
  • Quick
• Drawbacks of secondary research

  • Often out of date
  • Might not be available
  • Little control over quality
  • Problems of interpretation
• Quantitative research


  Gathers information based on facts that can be tested
• Benefits of quantitative research

  • Results are typical of the customer population
  • Unbiased
  • Valid
• Qualitative research


  Seeks to gather opinions and views
• Drawbacks of qualitative research


  • Unreliable
  • Biased
  • Need to be interpreted
• Sampling


  Obtaining a representative number of people (respondents) in order to find out about the whole group
• Quota sampling


  • The population is segmented into a number of groups that share specific characteristics
• Random sampling


  • Every number of the population has an equal chance of being interviewed
• Avoid bias when weighing data
• Footfall


  A measure of the potential number of customers who pass your location during a given time period
• Business 2 Consumer (B2C)


  • Physical location is required, but do rely on online sales
• Business 2 Business (B2B)

  • Just-in-time systems means that manufacturers insist suppliers are at a certain distance travel time
• Availability of premises


  • City centres are costly, need planning permission, out-of-town developments are popular
• Where customers are


  Need customers to visit in store regularly, footfall is important
• Where competitors are


  Locate near to gain customers, locate away for less choice
• Factors affecting business location

  • Population
  • Skill level of workers available
  • Wages
  • Cost of products for the consumer
• Social factors


  • Quality of life for the entrepreneur, good schools, low crime, the interests of people in a given area
• Technology


  • Physical location has become less important, more contact with customers via e-commerce, businesses may operate from home
• Costs affected by location

  • Planning permission
  • Purchasing or rental/leasing
  • Refurbishment
  • Business rates
  • Labour costs
  • Transport costs
• Government influences business location through tax policies, incentives, and the need to give businesses planning permission
• Infrastructure


  • Transport links are very important, mindful of distance from customer or raw materials, public transport access, locate near roads, railways, ports to get products to customers quickly and easily
• Consider your capital before starting a business