1.2 Spotting a Business Opportunity

• What is the 4 customer needs?


  Price, quality, choice and convenience
• Why is it important to identify and understand customers?

  So you know what your customers need and want
• 3 reasons for carrying out market research?

  Make informed decisions, reduce risks and spot a gap in the market
• What is the primary research?

  Research done by the business
• What is secondary research?

  Research that's already been done before
• What is qualitive data?


  Detailed and descriptive data
• What is quantitive data?


  Numerical data
• Benefits of primary research?


  Specific to your business and the research is up to date
• Benefits of secondary research?


  Cheap and easily accsessable
• Drawbacks of primary research?


  Time consuming and expensive
• Drawbacks of secondary research?


  Not specific to your business and could be out of date
• Benefits of surveys?


  Quick and easy
• Drawback of a survey?


  Expensive and biased
• Benefits of questionnaires?


  Cheap and easy to understand the positives and negatives
• Drawbacks of questionnaires?


  People won't respond if it is too long and if you get too much feedback you might not know how to take it
• Benefits of focus groups?


  Quick and can be done online or face to face
• Drawbacks of focus groups?


  Not all opinions heard and data can be difficult to analyse
• Benefits of observations?


  Cheap and customers behave naturally
• Drawbacks of observations?


  No opinion and time consuming
• Benefits of the internet?


  Quick and cheap
• Drawbacks of the internet?


  Could be out of date or fake news
• Benefits of market reports?


  Done by the government and cheap/free
• Drawbacks of market reports?


  May not be accurate to your question and could be biased
• Benefits of government reports?


  Easily found and trustworthy
• Drawbacks of government reports?


  Could be bias or outdated information
• How can social media be used in market research?


  Creates profiles on the internet to collect information and use it for their market research
• What is the importance of the reliability of market research?


  To understand what customers want
• What is market segmentation?


  Splitting the market into groups
• What is market mapping?


  Analyse the market to find a gap
• 4 ways of segmenting the market?


  Age, Income, Location and Lifestyle
• 4 areas that could be strengths or weaknesses of competitors?


  Price, Quality, Location and Customer Service
• What is the impact of competition on business decision making?

  Always considering other businesses rather than their own
• What are some examples of primary research?

  • Questionnaires
  • Surveys
  • Focus groups
  • Observations
  • Interviews
• What are some examples of secondary research?

  • Internal resources
  • Internet
  • Government reports
  • Market reports