1.2 Spotting a Business Opportunity Flashcards
(27 cards)
what is primary research
Primary research is when you collect information yourself
what is secondary research
Secondary research is a research method that uses data that was collected by someone else
what are some examples of primary research
-focus group
-survey
-observations
-questionaire
what are some examples of secondary research
-Internet
-market reports
-government reports
what is a focus group
a focus group is a group of customers brought together to discuss feeling about a particular product
what are advantages of primary research
-specific to the business
-provides detailed information
-relevant and up to date
-private to business
define qualitative data
Qualitative data collects information about opinions and views rather than numbers
define quantitative data
quantitative data is based on numerical and statistical research
what are some disadvantages of primary research
-time consuming
-expensive
-can be misleading
what are some advantages of secondary research
-quick and easy to gather
-wide range of info available
-cheap
what are some disadvantages of secondary research
-not specific to the business
-could be out of date
-could be biased or inaccurate
what are some examples of customer needs
-price
-quality
-choice
-convenience
what is the purpose of market research
-to identify and understand customers
-to reduce risk
-to identify a gap in the market
-to make informed business decisions
what is market segmentation
market segmentation is splitting the market into different group based on different factors
what are examples of market segmentation
-location
-demographic
-lifestyle
-income
-age
what are some advantages of market segmentation
-most profitable and least profitable customers can be identified
-more effective product development meeting specific customer needs
-more effectively targeted promotion
what are some disadvantages of market segmentation
-focusing on one group can lead to a missed business opportunity
-customer characteristics change over time
-can be expensive
what is market mapping
Market mapping is using a graph to plot competitors and their products to understand competitor behaviour and spot a
gap in the market
what can be identified through market mapping
market mapping an identify a gap in the market
what are some advantages of market mapping
-clear tool to help segment a market
-helps see a gap in the market
-helps identify competitors
what are some disadvantages of market mapping
-based on opinions and perceptions rather than data
-simplistic as it on has two variables
-can be difficult to identify the two most appropriate variables
what is a competitive environment
a competitive environment is when there are lots of businesses in one area of the market
what are some ways a business can compete with it’s rivals
-price
-quality
-location
-product range
-customer service
what are some advantages for quantitative data
-easy to analyse
-provides insight into trends
-can be compared to other data from competitors
