1.1

• Explain the impact of being a mass market business

  + EoS

  + Larger market share

  + More revenue

  x More competition

  x Lower prices
• Explain the impact of being a niche market business

  + Less competition

  + Premium prices

  x Higher market research costs

  x Less revenue and market share
• Explain the impact of operating in a dynamic market

  + More innovation

  + More choice

  x High market research costs

  x Enter decline quickly
• Explain the impact of being product orientated

  + High quality product

  + Competitive advantage

  x High R&D costs
• Impact of being market orientated

  + Meet customer needs

  x High market research costs

  x May not work in a dynamic market
• Explain 3 reasons for carrying out market research

  1. Identify customer needs
  2. Quantify likely demand
  3. Understand customer behaviour
• Explain the impact of using primary market research

  + Specific purpose

  + In date

  + Can ask follow up questions

  x More time consuming
• Explain the impact of using secondary market research

  + Quicker

  + Avoids bias

  + Readable format

  x Less reliable

  x Outdated
• Explain the impact of qualitative data

  + More detail, understand why

  x Harder to analyse
• Explain why the sample is important to market research

  + Avoid bias

  + Represents customer base
• Explain how ICT can be used for market research

  • Websites
  • Social media
  • Loyalty schemes, create databases
• Explain the reason for identifying a market segment

  • Clear target market
  • More accurate sample for market research
• Explain the benefit of adding value

  • Higher selling price
• Explain how a business can gain a competitive advantage

  • Cost competitiveness
  • Differentiation
  • Advertising
  • USP